Ajanta Soya Q2 profit drops 81% despite 12% revenue rise

Ajanta Soya Limited reported net profit of Rs 1.0138 crore for the quarter ended 30 September 2026, down 81% year on year, although revenue from operations increased 12% to Rs 387.2807 crore. Total expenses rose faster than operating revenue, reducing profit before tax to Rs 1.5241 crore from Rs 7.5752 crore.

Why did Ajanta Soya’s Q2 profit fall despite revenue growth?

Ajanta Soya’s profit fell because expenses increased by more than revenue in the quarter ended 30 September 2026. Revenue from operations rose by Rs 40.3505 crore from Rs 346.9302 crore a year earlier, while total expenses increased by Rs 45.3287 crore to Rs 386.0606 crore. As a result, profit before tax declined by Rs 6.0511 crore to Rs 1.5241 crore.

Cost of materials consumed was the largest cost at Rs 333.4205 crore, up Rs 42.8341 crore from Rs 290.5864 crore in the September 2025 quarter. Purchases of traded goods increased to Rs 36.8839 crore from Rs 33.1820 crore, while employee benefits rose to Rs 2.6717 crore from Rs 2.3421 crore. Other expenses provided a partial offset, falling to Rs 3.6215 crore from Rs 5.5664 crore.

How did Ajanta Soya perform against the preceding quarter?

Ajanta Soya’s net profit declined from Rs 7.8314 crore in the quarter ended 30 June 2026 to Rs 1.0138 crore in the September quarter, even as revenue from operations increased by Rs 56.8838 crore. Total expenses increased by Rs 64.7703 crore to Rs 386.0606 crore, exceeding the revenue increase and cutting profit before tax from Rs 10.3014 crore.

The principal sequential change was purchases of traded goods, which rose to Rs 36.8839 crore from Rs 5.6002 crore. Cost of materials consumed also rose by Rs 31.8691 crore to Rs 333.4205 crore. Other income fell to Rs 30.40 lakh from Rs 1.1948 crore, while finance costs increased to Rs 87.70 lakh from Rs 73.30 lakh.

The September-quarter inventory movement was a Rs 81.51 lakh expense, compared with a Rs 2.3022 crore reduction in the June quarter. Power and fuel expense increased to Rs 5.4748 crore from Rs 5.2071 crore, while freight outward decreased to Rs 2.3606 crore from Rs 2.5834 crore. Basic and diluted earnings per share, not annualised, were Rs 0.13, compared with Rs 0.97 in the preceding quarter.

What were Ajanta Soya’s first-half FY27 results?

Ajanta Soya reported net profit of Rs 8.8452 crore for the half year ended 30 September 2026, up from Rs 7.0474 crore in the corresponding prior-year half. Revenue from operations rose by Rs 58.6705 crore to Rs 717.6776 crore, and profit before tax increased to Rs 11.8255 crore from Rs 9.8120 crore.

The half-year outcome differed from the September quarter because the June 2026 quarter contributed Rs 7.8314 crore of net profit. Total comprehensive income for the half year increased to Rs 8.8242 crore from Rs 7.0972 crore, and basic and diluted earnings per share rose to Rs 1.10 from Rs 0.88.

Materials consumption for the half year increased to Rs 634.9719 crore from Rs 557.1563 crore, an increase of Rs 77.8156 crore. In contrast, purchases of traded goods declined to Rs 42.4841 crore from Rs 61.5783 crore. Finance costs fell to Rs 1.6100 crore from Rs 1.8595 crore, while freight outward increased to Rs 4.9440 crore from Rs 3.9561 crore.

Ajanta Soya said it is mainly engaged in manufacturing edible oils and disclosed no separate reportable segments under Indian Accounting Standard 108, or Ind AS 108. The filing therefore does not break down the Rs 717.6776 crore first-half operating revenue by product, geography or division.

What changed in Ajanta Soya’s balance sheet and cash flow?

Ajanta Soya’s total assets increased to Rs 283.1582 crore at 30 September 2026 from Rs 252.2943 crore at 31 March 2026. Current assets rose to Rs 219.1039 crore from Rs 188.3515 crore, while total equity increased to Rs 176.7991 crore from Rs 167.9750 crore.

Inventories declined to Rs 111.9687 crore from Rs 134.1659 crore over the six months, while trade receivables rose to Rs 37.9674 crore from Rs 25.4726 crore. Current investments increased to Rs 31.7719 crore from Rs 5.3632 crore. Trade and other payables increased to Rs 89.6324 crore from Rs 60.1304 crore.

Net cash from operating activities was Rs 47.7343 crore in the half year ended 30 September 2026, compared with net cash used of Rs 4.2701 crore in the prior-year half. The reported working-capital movements included a Rs 29.8234 crore increase in trade and other payables and a Rs 22.1972 crore decrease in inventories, partly offset by a Rs 12.4948 crore increase in trade receivables.

Net cash used in investing activities was Rs 31.5186 crore, compared with Rs 11.6397 crore generated in the corresponding half of 2025. Ajanta Soya paid Rs 150.6855 crore to purchase current investments and received Rs 124.7921 crore from their sale. Cash and cash equivalents ended the period at Rs 6.5748 crore, compared with Rs 10.79 lakh at its start.

Conclusion

Ajanta Soya’s September-quarter result shows that its Rs 40.3505 crore year-on-year increase in operating revenue did not translate into higher earnings because materials consumption and total expenses rose by more. The half-year figures remained ahead of the prior-year period, with net profit increasing by Rs 1.7978 crore to Rs 8.8452 crore.

The next quarterly filing will show whether materials consumption of Rs 333.4205 crore and traded-goods purchases of Rs 36.8839 crore remain at September-quarter levels. Ajanta Soya disclosed no target, outlook or expansion plan, and it does not provide segment-level reporting beyond its edible-oil manufacturing business.