Baheti Recycling revenue rises 68% as pre-tax profit doubles

Baheti Recycling Industries Limited reported unaudited standalone revenue from operations of Rs 528.47 crore for the half year ended September 30, 2026, up 68% from Rs 315.14 crore a year earlier, while profit before tax increased 115% to Rs 25.70 crore from Rs 11.98 crore.

How did Baheti Recycling perform in the September half?

Baheti Recycling’s revenue from operations rose by Rs 213.33 crore to Rs 528.47 crore in the half year ended September 30, 2026, from Rs 315.14 crore in the half year ended September 30, 2025. The results were approved by the board on November 2, 2026 and were reported on a standalone, unaudited basis.

Profit before tax increased by Rs 13.72 crore to Rs 25.70 crore in the September 2026 half, compared with Rs 11.98 crore in the corresponding prior-year period. The 115% increase in pre-tax profit exceeded the 68% revenue increase, based on the figures in Baheti Recycling’s financial-results statement.

Total expenses rose by Rs 199.92 crore to Rs 503.09 crore in the latest half year from Rs 303.17 crore a year earlier. Expenses increased by about 66%, below the 68% increase in revenue, which accounts for the faster growth in reported profit before tax.

What changed in Baheti Recycling’s profitability?

Baheti Recycling’s profit before tax margin was about 4.86% in the half year ended September 30, 2026, calculated from Rs 25.70 crore of profit before tax and Rs 528.47 crore of revenue from operations. This compares with about 3.80% in the half year ended September 30, 2025, based on Rs 11.98 crore of profit before tax and Rs 315.14 crore of revenue.

The margin increased by roughly 1.06 percentage points because revenue rose faster than total expenses in the year-on-year comparison. The company reported Rs 25.38 crore between revenue from operations and total expenses in the September 2026 half, compared with Rs 11.97 crore in the prior-year half before the reported profit-before-tax line.

Current tax expense was Rs 6.39 crore for the half year ended September 30, 2026, while deferred tax expense was Rs 20.57 lakh. Baheti Recycling said earnings per share for half-year periods are not annualised and are calculated using weighted average share capital outstanding during the year.

Were Baheti Recycling’s September-half results audited?

No, Baheti Recycling’s results for the half year ended September 30, 2026 were unaudited standalone results subject to a limited review by the statutory auditors. The board considered and approved the results on November 2, 2026, at a meeting that began at 11:30 a.m. and concluded at 12:20 p.m.

The limited-review report says the results were prepared under Accounting Standard 25, Interim Financial Reporting, and submitted under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The auditors stated that a review is primarily based on inquiries and analytical procedures and provides less assurance than an audit.

Baheti Recycling disclosed one reportable operating segment, Castings & Forgings, under Accounting Standard 17 on operating segments. The September 2026 filing therefore provides no separate revenue or profit split within the Rs 528.47 crore reported from operations.

What does Baheti Recycling’s balance sheet show?

Baheti Recycling reported total assets and total equity and liabilities of Rs 505.33 crore as of September 30, 2026, compared with Rs 376.28 crore at March 31, 2026. The balance-sheet total increased by Rs 129.05 crore during the six-month period covered by the unaudited statement.

Inventories rose to Rs 296.64 crore at September 30, 2026 from Rs 223.51 crore at March 31, 2026, while trade receivables increased to Rs 135.88 crore from Rs 91.15 crore. The combined increase in these two working-capital items was Rs 117.86 crore over the six months.

Short-term borrowings increased by Rs 62.76 crore to Rs 271.00 crore, and long-term borrowings rose by Rs 17.97 crore to Rs 38.99 crore, between March 31 and September 30, 2026. Share capital was Rs 10.45 crore at the half-year date, compared with Rs 10.43 crore at the preceding financial year-end.

How did Baheti Recycling’s cash flow move during the half year?

Baheti Recycling reported net cash outflow from operating activities of Rs 61.55 crore for the half year ended September 30, 2026, despite profit before income tax of Rs 25.71 crore. The cash-flow statement was prepared using the indirect method and identifies movements in working capital as the principal offset to operating profit.

The company recorded a Rs 65.13 crore increase in inventories and a Rs 47.35 crore increase in trade receivables during the period. These changes, alongside a Rs 10.72 crore increase in other current assets and short-term loans and advances, contributed to negative cash generated from operations of Rs 55.65 crore before direct taxes paid.

Direct taxes paid were Rs 5.89 crore, taking the operating cash outflow to Rs 61.55 crore. The filing’s comparative cash-flow column is for the full year ended March 31, 2026 rather than the half year ended September 30, 2025, so it is not a like-for-like prior-half comparison.

Net cash used in investing activities was Rs 5.36 crore in the September 2026 half, including Rs 1.77 crore spent on fixed assets and Rs 3.42 crore on capital work in progress. Financing activities generated Rs 66.96 crore, led by Rs 70.69 crore of short-term borrowings and Rs 11.37 crore of increased long-term borrowings, while closing cash and cash equivalents were Rs 48.24 lakh.

Conclusion

Baheti Recycling’s September-half results show revenue rising to Rs 528.47 crore and profit before tax reaching Rs 25.70 crore, with pre-tax profit growing faster than sales. At the same time, inventories, trade receivables and borrowings all increased between March 31 and September 30, 2026, and the company recorded operating cash outflow of Rs 61.55 crore.

The key unresolved matter in the disclosed results is whether the Rs 117.86 crore combined increase in inventories and trade receivables converts into operating cash in subsequent periods. Investors can also watch movements in the Rs 271.00 crore short-term borrowing balance and the single Castings & Forgings segment when Baheti Recycling next reports financial results.