Birla Precision Q2 profit falls 98% despite revenue growth

Birla Precision Technologies Limited reported consolidated net profit of Rs 11.52 lakh for the quarter ended 30 September 2026, down about 98% from Rs 4.66 crore a year earlier, even as revenue from operations rose 22% to Rs 77.51 crore and other income reached Rs 5.22 crore. Total expenses increased faster, reaching Rs 81.72 crore.

Why did Birla Precision’s Q2 profit fall despite revenue growth?

Birla Precision’s Q2 consolidated profit fell because expenses increased by Rs 23.73 crore year-on-year, exceeding the Rs 18.72 crore increase in total income. Total income rose to Rs 82.73 crore in the quarter ended 30 September 2026 from Rs 64.02 crore a year earlier, while total expenses rose to Rs 81.72 crore from Rs 57.99 crore. Profit before tax therefore declined to Rs 1.01 crore from Rs 6.02 crore.

The cost movements were spread across several expense lines. Consumption of raw materials and components rose to Rs 31.89 crore from Rs 24.77 crore, employee benefits expense increased to Rs 16.82 crore from Rs 13.36 crore, and other expenses rose to Rs 25.74 crore from Rs 21.39 crore. Finance costs increased to Rs 1.46 crore from Rs 1.12 crore, while depreciation and amortisation expense rose to Rs 2.26 crore from Rs 1.04 crore.

The quarterly comparison also shows a sharp sequential decline in reported profit. Consolidated net profit was Rs 5.37 crore in the quarter ended 30 June 2026, compared with Rs 11.52 lakh in the September quarter, while profit before tax declined from Rs 6.66 crore to Rs 1.01 crore. Revenue from operations increased from Rs 60.45 crore in the June quarter to Rs 77.51 crore in the September quarter.

How much did other income contribute to Birla Precision’s result?

Birla Precision reported Rs 5.22 crore of consolidated other income in Q2, compared with Rs 25.20 lakh in the corresponding quarter a year earlier and Rs 6.21 crore in the June 2026 quarter. That income lifted total income to Rs 82.73 crore, but did not prevent profit before tax from falling to Rs 1.01 crore because the expense base was Rs 81.72 crore.

For the half year ended 30 September 2026, other income was Rs 11.43 crore, compared with Rs 50.82 lakh in the prior-year half. The consolidated cash-flow statement records Rs 7.83 crore of profit on sale of fixed assets, Rs 49 lakh of investment fair-value changes, Rs 63.63 lakh of exchange difference on translation and Rs 1.93 crore of interest income received during the six months. These cash-flow adjustments provide context for the first-half other-income movement, but the filing does not separately allocate Q2 other income among those items.

Tax expense was Rs 89.37 lakh in Q2, versus Rs 1.37 crore a year earlier. After tax, net profit was Rs 11.52 lakh and basic earnings per share was Rs 0.02, compared with net profit of Rs 4.66 crore and basic earnings per share of Rs 0.88 in the September 2025 quarter.

Which Birla Precision segments changed most in Q2?

Birla Precision’s Tooling segment remained its larger reported segment by revenue, but it moved to a loss, while Automotive Components reported a profit. Tooling revenue was Rs 77.86 crore in Q2, up from Rs 62.37 crore a year earlier, while Automotive Components revenue rose to Rs 4.87 crore from Rs 1.65 crore. The company identifies Tooling and Automotive Components as its two reporting segments under Indian Accounting Standard 108.

Tooling recorded a segment loss before tax of Rs 1.27 crore in the September 2026 quarter, against a segment profit of Rs 6.13 crore in the prior-year quarter. Automotive Components recorded a segment profit before tax of Rs 2.28 crore, compared with a loss of Rs 10.88 lakh a year earlier. The reported segment results combined with unallocated items to produce consolidated profit before tax of Rs 1.01 crore.

For the half year ended 30 September 2026, Tooling revenue increased to Rs 136.38 crore from Rs 121.35 crore, but its segment result fell to Rs 1 crore from Rs 11.40 crore. Automotive Components revenue rose to Rs 12.09 crore from Rs 2.55 crore, and its segment result improved to Rs 6.64 crore from a loss of Rs 91.03 lakh. Consolidated profit before tax for the half year declined to Rs 7.64 crore from Rs 10.49 crore.

What changed in Birla Precision’s balance sheet and cash flow?

Birla Precision’s consolidated total assets increased to Rs 356.43 crore at 30 September 2026 from Rs 320.15 crore at 31 March 2026, while total equity rose to Rs 176.21 crore from Rs 174.85 crore. Property, plant and equipment increased to Rs 92.31 crore from Rs 79.01 crore, capital work-in-progress rose to Rs 8.81 crore from Rs 3.91 crore, and inventories increased to Rs 86.27 crore from Rs 67.72 crore.

Current liabilities increased to Rs 163.31 crore from Rs 132.59 crore during the six months. Current borrowings rose to Rs 55.08 crore from Rs 43.95 crore, trade payables increased to Rs 43.91 crore from Rs 19.92 crore, and non-current borrowings rose to Rs 13.46 crore from Rs 9.25 crore. Consolidated trade receivables, in contrast, declined to Rs 58.31 crore from Rs 64.56 crore.

The consolidated cash-flow statement reported net cash used in operating activities of Rs 8.50 crore for the half year, compared with net cash generated of Rs 8.16 crore in the prior-year half. Investing activities used Rs 9.88 crore, including Rs 17.64 crore of payments for property, plant and equipment, while financing activities generated Rs 11.36 crore. Cash and cash equivalents in the cash-flow statement were Rs 11.89 crore at 30 September 2026, compared with Rs 19.76 crore at 30 September 2025.

How were Birla Precision’s September results approved and reviewed?

Birla Precision’s board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 on 6 November 2026, after review by the Audit Committee. The company said the statements were prepared under Indian Accounting Standards and the recognition and measurement principles prescribed under Section 133 of the Companies Act, 2013.

The auditor’s standalone review report says that a review is limited mainly to inquiries and analytical procedures and provides moderate assurance rather than an audit opinion. The report says nothing came to the auditor’s attention to indicate that the standalone results did not make required disclosures or contained a material misstatement. The consolidated review also relied on reports from other auditors for subsidiaries outside India and on management’s conversion adjustments reviewed by the auditor.

Conclusion

Birla Precision’s September-quarter figures show that a 22% increase in consolidated operating revenue and Rs 5.22 crore of other income did not preserve profitability as expenses rose more quickly. Tooling generated the larger segment revenue but recorded a Rs 1.27 crore loss, whereas Automotive Components improved to a Rs 2.28 crore segment profit. The combined effect was net profit of Rs 11.52 lakh.

The next results will show whether Tooling’s segment result recovers and whether the increases in inventory, borrowings and trade payables persist. The filing gives no numerical earnings target or forward guidance. Reported operating cash outflow of Rs 8.50 crore and property, plant and equipment payments of Rs 17.64 crore for the first half are the disclosed items to monitor in subsequent financial statements.