Auro Impex H1 profit rises 31% despite 13% revenue fall

Auro Impex & Chemicals Limited reported consolidated net profit of Rs 2.12 crore for the half year ended 30 September 2026, up 31% from Rs 1.62 crore a year earlier, although revenue from operations declined 13% to Rs 117.04 crore. Lower trading revenue reduced sales, while lower purchases of traded stock and a smaller tax charge supported profit.

How did Auro Impex’s H1 2026 profit and revenue change?

Auro Impex’s consolidated net profit rose by Rs 49.15 lakh year on year to Rs 2.12 crore in the half year ended 30 September 2026. Revenue from operations fell by Rs 17.82 crore from Rs 134.85 crore in the corresponding half year ended 30 September 2025, while total income, including other income, declined to Rs 117.64 crore from Rs 135.64 crore.

Profit before tax increased to Rs 2.37 crore from Rs 2.19 crore despite the lower income base. Total expenses declined by Rs 18.17 crore to Rs 115.27 crore, a larger absolute reduction than the Rs 18 crore fall in total income. The result included other income of Rs 60.70 lakh, compared with Rs 78.51 lakh a year earlier.

Auro Impex reported basic and diluted earnings per share of Rs 1.74, compared with Rs 1.33 in the prior-year half. Paid-up share capital was unchanged at Rs 12.20 crore, based on a face value of Rs 10 per share. The board approved the unaudited consolidated results on 12 November 2026.

Which business segment caused Auro Impex’s revenue decline?

Auro Impex’s trading segment was the principal source of the revenue decline, with segment revenue decreasing to Rs 72.25 crore from Rs 98.22 crore a year earlier. Its Rs 25.97 crore reduction outweighed the rise in revenue from manufacturing stainless steel pipes and other products.

Revenue from stainless steel pipes and other products increased to Rs 12.65 crore from Rs 4.02 crore in the half year ended 30 September 2026. Air pollution control equipment revenue declined marginally to Rs 32.28 crore from Rs 32.95 crore, while inter-segment revenue was Rs 13.86 lakh, leaving reported revenue from operations at Rs 117.04 crore.

Auro Impex says it manufactures, exports and supplies discharge and collecting electrodes, electrostatic precipitator internal parts and spares, and stainless steel pipes, besides trading various products. The filing does not provide sales volumes, customer data, pricing changes or management commentary explaining the segment movements for the six months ended 30 September 2026.

What costs and taxes supported Auro Impex’s higher profit?

Auro Impex’s purchases of stock in trade fell to Rs 69.95 crore from Rs 96.78 crore, representing the largest expense reduction in the period. Raw-material consumption increased to Rs 39.41 crore from Rs 29.79 crore, consistent with the disclosed revenue mix shifting away from trading and towards stainless steel pipes and other manufactured products.

Inventory changes reduced expenses by Rs 3.79 crore in the latest half year, compared with a Rs 1.17 crore reduction in the prior-year period. Employee benefits expense increased to Rs 2.26 crore from Rs 1.91 crore, depreciation and amortisation rose to Rs 46.18 lakh from Rs 29.44 lakh, and other expenses increased to Rs 4.63 crore from Rs 3.48 crore.

Auro Impex’s finance cost was broadly stable at Rs 2.35 crore, compared with Rs 2.36 crore a year earlier. Total tax expense fell to Rs 24.84 lakh from Rs 57.16 lakh as a deferred-tax credit of Rs 24.21 lakh replaced deferred-tax expense of Rs 6.51 lakh; current tax was Rs 49.03 lakh, versus Rs 50.65 lakh in the prior-year half.

How did Auro Impex’s working capital and operating cash flow move?

Auro Impex used Rs 9.02 crore in operating activities during the half year ended 30 September 2026. The cash-flow statement showed operating profit before working-capital changes of Rs 4.52 crore, but increases in trade receivables and inventories absorbed cash during the six-month period.

Trade receivables increased by Rs 15.97 crore and inventories increased by Rs 7.93 crore in the cash-flow statement. Short-term loans and advances rose by Rs 3.31 crore, while trade payables increased by Rs 15.52 crore, partly offsetting the outflows. Direct taxes paid were Rs 12.11 lakh.

At 30 September 2026, trade receivables stood at Rs 37.91 crore, compared with Rs 21.94 crore at 31 March 2026. Inventories increased to Rs 52.80 crore from Rs 44.87 crore, total current assets rose to Rs 108.82 crore from Rs 83.59 crore, and cash and bank balances declined to Rs 10.70 crore from Rs 12.81 crore.

What did Auro Impex’s auditor flag in the H1 results?

Auro Impex’s independent auditor issued an unmodified review conclusion on the consolidated results dated 12 November 2026, but drew attention to certain trade receivable and unsecured-loan balances. The auditor said some balance confirmations were unavailable and reconciliation adjustments remained pending.

For receivables, the auditor said it performed alternative procedures including subsequent-realisation testing and obtained comfort on the validity and accuracy of transactions. It nevertheless said it could not comment on certain balances because confirmations were not available and reconciliation adjustments were pending; the conclusion was not modified for that matter.

Auro Impex’s cash flow from financing activities was an inflow of Rs 9.92 crore in the half year ended 30 September 2026. The statement recorded Rs 5.69 crore of proceeds from long-term borrowings and Rs 6.12 crore from short-term borrowings, offset by interest paid of Rs 1.88 crore.

Conclusion

Auro Impex’s H1 2026 outcome combined a 31% rise in net profit to Rs 2.12 crore with a 13% decline in revenue to Rs 117.04 crore. The fall in trading revenue and stock-in-trade purchases changed the cost mix, while a lower tax charge also lifted profit after tax.

The unresolved items to watch are the Rs 37.91 crore receivables balance, the Rs 52.80 crore inventory balance and the pending confirmations and reconciliation adjustments identified by the auditor on 12 November 2026. Their development will matter for cash conversion after operating activities used Rs 9.02 crore in the latest half year.