Bemco Hydraulics H1 revenue rises 12% as profit falls 12%

BEMCO HYDRAULICS LIMITED reported revenue from operations of Rs 38.11 crore for the half year, or H1, ended 30 September 2026, up 12% from Rs 34.04 crore a year earlier, while consolidated net profit fell 12% to Rs 4.83 crore from Rs 5.46 crore as expenses increased faster than total income.

Why did Bemco Hydraulics’ H1 profit fall despite revenue growth?

Bemco Hydraulics’ profit before tax fell to Rs 6.88 crore in H1 ended 30 September 2026 from Rs 7.18 crore in the prior-year half, because total expenses increased by Rs 5.66 crore to Rs 33.42 crore while total income rose by Rs 5.35 crore to Rs 40.30 crore. Revenue from operations increased by Rs 4.07 crore during the same comparison.

Materials consumed rose to Rs 19.32 crore from Rs 18.74 crore, and employee benefit expense increased to Rs 8.05 crore from Rs 7.97 crore. The inventory-change line represented a Rs 1.34 crore reduction in H1 2026, compared with a Rs 7.60 crore reduction in H1 2025, while other expenses declined to Rs 5.71 crore from Rs 6.92 crore.

Tax expense was Rs 2.05 crore in H1 2026, compared with Rs 1.73 crore a year earlier, alongside the decline in pre-tax profit. Based on the reported figures, profit before tax was about 17.1% of total income, compared with about 20.6% in H1 2025, while net profit represented about 12.0% of total income versus about 15.6%.

How did Bemco Hydraulics’ income and expenses compare year on year?

Bemco Hydraulics’ total income grew to Rs 40.30 crore in H1 2026 from Rs 34.95 crore in H1 2025, helped by Rs 2.19 crore of other income compared with Rs 0.91 crore a year earlier. However, the Rs 33.42 crore expense base was higher than the Rs 27.76 crore reported for the earlier half year.

Finance costs were Rs 0.96 crore in H1 2026, marginally below Rs 0.98 crore in H1 2025, providing a limited offset to the movement in operating costs. Basic and diluted earnings per share fell to Rs 1.10 from Rs 1.25, based on equity shares with a face value of Rs 1 each.

What does Bemco Hydraulics’ quarterly trend show?

Bemco Hydraulics reported Rs 22.52 crore of revenue from operations in the quarter ended 30 September 2026, compared with Rs 22.33 crore in the corresponding quarter of 2025. Quarterly net profit declined to Rs 2.10 crore from Rs 4.02 crore, while profit before tax reduced to Rs 3.08 crore from Rs 5.28 crore.

The September 2026 quarter followed revenue of Rs 15.58 crore in the quarter ended 30 June 2026, so revenue increased by Rs 6.94 crore sequentially. Net profit, however, was lower than the Rs 2.72 crore reported in the June 2026 quarter, as total expenses increased to Rs 20.26 crore from Rs 13.16 crore while total income rose to Rs 23.34 crore from Rs 16.96 crore.

Finance costs in the September 2026 quarter were Rs 0.46 crore, below Rs 0.52 crore in the September 2025 quarter. Other income was Rs 0.82 crore in the latest quarter, compared with Rs 0.39 crore a year earlier, but this did not prevent the Rs 2.20 crore year-on-year reduction in quarterly profit before tax.

What do Bemco Hydraulics’ cash flows show about working capital?

Bemco Hydraulics generated net operating cash flow of Rs 8.68 crore for the half year ended 30 September 2026, after direct taxes paid of Rs 3.48 crore. Cash generated from operations before taxes was Rs 12.16 crore, compared with operating profit before working-capital changes of Rs 6.51 crore.

A Rs 15.54 crore decrease in trade and other receivables supported operating cash flow, while inventories increased by Rs 7.70 crore and trade and other payables decreased by Rs 2.18 crore. The receivables balance on the balance sheet declined to Rs 24.34 crore at 30 September 2026 from Rs 34.27 crore at 31 March 2026, whereas inventories rose to Rs 32.95 crore from Rs 25.25 crore.

Investing activities used Rs 7.28 crore in H1 2026, including Rs 9.01 crore for net purchases or sales of current investments and Rs 0.71 crore for property, plant and equipment purchases including capital advances. Fixed-deposit movements contributed Rs 1.64 crore, and lease or rental income was Rs 0.62 crore during the half year.

How did Bemco Hydraulics’ borrowings and balance sheet change?

Bemco Hydraulics ended 30 September 2026 with cash and cash equivalents of Rs 85.24 lakh, down from Rs 2.40 crore at the beginning of the period. Financing activities used Rs 2.94 crore, including Rs 1.59 crore of net short-term borrowing repayment, Rs 0.44 crore of dividend paid and Rs 0.96 crore of interest paid.

Current borrowings decreased to Rs 12.59 crore at 30 September 2026 from Rs 14.20 crore at 31 March 2026, while non-current borrowings increased to Rs 3.53 crore from Rs 3.48 crore. Total current liabilities fell to Rs 50.31 crore from Rs 53.71 crore, and total equity increased to Rs 88.87 crore from Rs 84.51 crore.

Total assets were Rs 148.63 crore at 30 September 2026, compared with Rs 147.37 crore at 31 March 2026. Other equity increased to Rs 84.49 crore from Rs 80.13 crore, while the equity share capital remained Rs 4.38 crore at both dates.

Conclusion

Bemco Hydraulics reported higher H1 revenue and total income in the half year ended 30 September 2026, but the increase in expenses exceeded the income increase. The result was a decline in profit before tax to Rs 6.88 crore, net profit to Rs 4.83 crore and earnings per share to Rs 1.10.

The next results will indicate whether the Rs 32.95 crore inventory balance converts into revenue and whether the Rs 15.54 crore receivables reduction can be maintained. The filing identifies one reporting segment, manufacturing of hydraulic press machines and equipment, and includes Bemco Fluidtechnik LLP and Pegasys Machines Private Limited in the consolidated results.