ABC Industries reports Q2 profit up 56% at Rs 5.66 crore

ABC Industries India Limited reported consolidated profit of Rs 5.66 crore for the quarter ended September 30, 2026, 56% above Rs 3.62 crore a year earlier, after total revenue rose 90% to Rs 96.44 crore. Revenue from operations reached Rs 95.45 crore and profit before tax was Rs 7.56 crore.

How did ABC Industries perform in Q2 2026?

ABC Industries increased consolidated total revenue to Rs 96.44 crore in the quarter ended September 30, 2026, from Rs 50.78 crore in the corresponding quarter of 2025. Revenue from operations rose to Rs 95.45 crore from Rs 50.73 crore, while other income was Rs 99.29 lakh, compared with Rs 4.84 lakh a year earlier.

ABC Industries reported profit before tax of Rs 7.56 crore, compared with Rs 4.66 crore in the September 2025 quarter. Tax expense rose to Rs 1.90 crore from Rs 1.04 crore, leaving net profit at Rs 5.66 crore. Basic and diluted earnings per share were Rs 2.58, against Rs 1.66 a year earlier; the company said quarterly earnings per share were not annualised.

What changed in ABC Industries’ first-half results?

ABC Industries recorded total revenue of Rs 198.44 crore for the half year ended September 30, 2026, compared with Rs 117.48 crore in the year-earlier half. Revenue from operations increased to Rs 196.44 crore from Rs 117.42 crore, while other income rose to Rs 2.00 crore from Rs 5.77 lakh.

First-half profit before tax increased to Rs 14.40 crore from Rs 10.42 crore, and net profit rose to Rs 10.77 crore from Rs 7.80 crore. Total expenses were Rs 184.03 crore, compared with Rs 107.05 crore, meaning the increase in revenue was accompanied by a Rs 3.97 crore rise in profit before tax.

Cost of materials consumed was Rs 139.11 crore for the September 2026 half year, compared with Rs 111.14 crore a year earlier. Finance costs declined to Rs 4.75 crore from Rs 4.86 crore, while depreciation and amortisation rose to Rs 6.94 crore from Rs 6.00 crore. These items formed part of the expense movement alongside the increase in revenue.

What do ABC Industries’ cash flows show?

ABC Industries generated net cash flow from operating activities of Rs 57.29 crore in the half year ended September 30, 2026, compared with Rs 37.53 crore in the prior-year half. Cash generated from operations before tax payments was Rs 61.17 crore, while taxes paid or refunded were Rs 3.88 crore under the indirect-method cash-flow statement.

Working-capital movements included a Rs 16.08 crore decrease in inventories, a Rs 11.16 crore change in trade receivables and a Rs 11.12 crore increase in trade payables. Other current assets changed by Rs 4.11 crore, while other current and financial liabilities increased by Rs 65.15 lakh.

Investing activities generated net cash flow of Rs 1.91 crore, compared with an outflow of Rs 29.47 crore in the previous-year half. Financing activities used Rs 59.05 crore, against Rs 6.16 crore previously, including a Rs 61.25 crore net decrease in short-term loans and borrowings and Rs 4.75 crore of finance-cost payments. Cash and cash equivalents closed at Rs 16.73 lakh, versus Rs 1.71 lakh at March 31, 2026.

How did ABC Industries’ balance sheet and borrowings move?

ABC Industries’ total assets were Rs 281.29 crore at September 30, 2026, down from Rs 312.87 crore at March 31, 2026. Current assets declined to Rs 155.35 crore from Rs 179.85 crore, with inventories falling to Rs 51.82 crore from Rs 67.90 crore and trade receivables decreasing to Rs 61.06 crore from Rs 72.23 crore.

Total equity increased to Rs 163.99 crore from Rs 153.21 crore during the six months. Other equity rose to Rs 141.83 crore from Rs 131.05 crore, while equity share capital remained Rs 22.15 crore at both reporting dates. The statement showed no equity attributable to non-controlling interests.

Total liabilities fell to Rs 117.30 crore at September 30 from Rs 159.66 crore at March 31. Current liabilities declined to Rs 46.48 crore from Rs 95.68 crore, as current borrowings decreased to Rs 24.46 crore from Rs 85.71 crore. Non-current liabilities increased to Rs 70.82 crore from Rs 63.98 crore, including non-current borrowings of Rs 68.06 crore compared with Rs 61.10 crore.

What business does ABC Industries report and what acquisition is planned?

ABC Industries identifies cotton ginning and netting as its only reportable operating segment under Indian Accounting Standard 108, or Ind AS 108. As management reviews operations on that basis, the September 2026 results do not provide revenue, profit or asset figures for separate operating segments.

The Audit Committee reviewed, and the board approved, the consolidated results on November 14, 2026. The independent reviewer said nothing had come to its attention indicating that the results failed to make required disclosures or contained a material misstatement. The review was conducted under Standard on Review Engagements 2410 and provided moderate assurance rather than an audit opinion.

ABC Industries has also proposed acquiring up to 7,50,000 equity shares of AB Cotton Textiles Private Limited for cash at Rs 800 per share, with a maximum consideration of Rs 60 crore. The target manufactures cotton yarn and yarn products, reported financial year 2025-26 turnover of Rs 114.21 crore and profit after tax of Rs 5.09 crore, and the filing classifies the proposed transaction as a related-party transaction.

Conclusion

ABC Industries’ September-quarter results show that consolidated revenue rose from Rs 50.78 crore to Rs 96.44 crore while net profit increased from Rs 3.62 crore to Rs 5.66 crore. The half-year accounts also show operating cash flow of Rs 57.29 crore and a reduction in current borrowings from Rs 85.71 crore at March 31 to Rs 24.46 crore at September 30, 2026.

The disclosed item to watch next is the proposed cash acquisition of up to 7,50,000 shares in AB Cotton Textiles Private Limited for up to Rs 60 crore. ABC Industries has indicated completion by March 31, 2027, while the filing also leaves investors to track subsequent movements in inventories, receivables, borrowings and cash balances after the September 2026 reporting date.