Ashapura Minechem Q2 profit falls as expenses outpace income

Ashapura Minechem Limited reported consolidated profit after tax of Rs 69.70 crore for the quarter ended September 30, 2026, down 34% from Rs 105.98 crore a year earlier, although income from operations increased 11.6% to Rs 1,063.40 crore and total expenses rose 13.6% to Rs 1,003.28 crore.

How much did Ashapura Minechem's Q2 revenue grow?

Ashapura Minechem's consolidated income from operations increased to Rs 1,063.40 crore in the quarter ended September 30, 2026, from Rs 952.50 crore in the corresponding quarter of 2025. The Rs 110.90 crore increase represented 11.6% year-on-year growth. Other income rose to Rs 12.61 crore from Rs 1.44 crore, taking total income to Rs 1,076.01 crore from Rs 953.94 crore.

The September-quarter result was lower than the preceding quarter in absolute terms. Income from operations was Rs 1,616.12 crore in the quarter ended June 30, 2026, while total income was Rs 1,623.72 crore. September-quarter operating income was therefore Rs 552.72 crore below the June-quarter figure, and total income was Rs 547.71 crore lower.

Ashapura Minechem identified minerals, derivative products and related services as its only primary reportable segment under Indian Accounting Standard 108, which covers operating segments. The filing therefore does not split the Rs 1,063.40 crore of operating income by mineral, geography, customer type or product line.

Why did Ashapura Minechem's Q2 profit decline?

Ashapura Minechem's consolidated profit after tax declined as total expenses rose 13.6% to Rs 1,003.28 crore, faster than the 11.6% increase in income from operations, while profit from joint ventures and associates fell. Selling and distribution expense increased to Rs 574.17 crore from Rs 504.27 crore, cost of materials consumed rose to Rs 240.30 crore from Rs 143.85 crore, and other expenses increased to Rs 84.84 crore from Rs 59.50 crore.

Changes in inventories partly offset those increases. Ashapura Minechem reported a negative Rs 22.39 crore charge for changes in inventories in the September 2026 quarter, compared with a Rs 48.93 crore expense a year earlier. Employee-benefit expense still rose to Rs 41.09 crore from Rs 32.53 crore, depreciation and amortisation increased to Rs 33.50 crore from Rs 32.16 crore, and finance costs rose to Rs 31.45 crore from Rs 29.22 crore.

Profit before tax was Rs 77.77 crore, compared with Rs 81.22 crore in the year-earlier quarter. Profit before the share of joint ventures and associates was Rs 72.73 crore, up from Rs 70.74 crore, but the share of profit from those investments declined to Rs 5.04 crore from Rs 10.47 crore. This lower contribution reversed the increase recorded before that share was included.

The tax outcome also differed substantially between the two periods. Ashapura Minechem recorded deferred-tax expense of Rs 4.17 crore in the September 2026 quarter, whereas it reported a deferred-tax credit of Rs 28.91 crore in the September 2025 quarter. Current tax was Rs 3.84 crore versus Rs 4.15 crore, while earlier-years tax was Rs 0.05 crore against nil; profit after tax equalled about 6.5% of total income, compared with about 11.1% a year earlier.

How did Ashapura Minechem perform in the first half?

Ashapura Minechem's consolidated profit after tax for the half year ended September 30, 2026 was Rs 178.01 crore, down 19.0% from Rs 219.88 crore in the corresponding half year. Income from operations nevertheless rose 16.1% to Rs 2,679.52 crore from Rs 2,308.07 crore, while total income increased to Rs 2,699.73 crore from Rs 2,315.46 crore.

Six-month expenses increased to Rs 2,503.70 crore from Rs 2,119.37 crore. Selling and distribution expense rose by Rs 285.44 crore to Rs 1,482.62 crore and cost of materials consumed increased by Rs 350.78 crore to Rs 752.70 crore. Changes in inventories were a negative Rs 174.21 crore, compared with a Rs 155.89 crore expense in the prior-year half.

The half-year profit before tax was Rs 207.80 crore, compared with Rs 213.05 crore a year earlier. Share of profit from joint ventures and associates declined to Rs 11.76 crore from Rs 16.96 crore. Profit attributable to shareholders was Rs 166.98 crore for the six months, down from Rs 206.48 crore, while profit attributable to non-controlling interests was Rs 11.03 crore compared with Rs 13.41 crore.

What changed on Ashapura Minechem's consolidated balance sheet?

Ashapura Minechem's consolidated total assets stood at Rs 4,777.93 crore on September 30, 2026, compared with Rs 4,698.08 crore on March 31, 2026. Inventories increased to Rs 789.93 crore from Rs 584.75 crore, capital work in progress rose to Rs 82.98 crore from Rs 50.77 crore, and cash and cash equivalents increased to Rs 377.91 crore from Rs 300.98 crore.

Trade receivables declined to Rs 619.16 crore at September 30 from Rs 1,000.99 crore at March 31. Other current assets increased to Rs 500.85 crore from Rs 366.07 crore, while property, plant and equipment decreased slightly to Rs 1,326.29 crore from Rs 1,330.21 crore. Total assets increased by Rs 79.85 crore over the six-month period.

Consolidated equity including non-controlling interests was Rs 1,807.49 crore at September 30, compared with Rs 1,644.83 crore at March 31. Non-current borrowings declined to Rs 1,007.15 crore from Rs 1,019.25 crore and current borrowings fell to Rs 415.84 crore from Rs 422.46 crore. Trade payables to creditors other than micro and small enterprises declined to Rs 699.82 crore from Rs 929.90 crore.

What did Ashapura Minechem's board and auditors report?

Ashapura Minechem's board approved the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026 at its November 5, 2026 meeting. The meeting began at 4:30 pm and concluded at 6:00 pm, according to the stock-exchange filing.

Statutory auditors P A R K & Co. carried out a limited review dated November 5, 2026, and the notes state that they expressed an unmodified opinion on the results. Ashapura Minechem also reported zero investor or shareholder complaints received, resolved or unresolved during the quarter ended September 30, 2026.

Conclusion

Ashapura Minechem delivered 11.6% year-on-year growth in September-quarter income from operations, but consolidated profit after tax declined 34% to Rs 69.70 crore. Expenses rose faster than operating income, profit from associates and joint ventures fell by Rs 5.43 crore, and the prior-year deferred-tax credit did not recur in the latest quarter.

The November 5, 2026 filing does not disclose a financial target, operating forecast, expansion plan or scheduled future event. The disclosed unresolved operating measures are the September-quarter income decline from Rs 1,616.12 crore in June, first-half selling and distribution expense of Rs 1,482.62 crore, and inventory of Rs 789.93 crore at September 30, 2026.