Black Rose Industries’ September profit more than doubles

Black Rose Industries Limited reported standalone net profit of Rs 10.49 crore for the quarter ended September 30, 2026, more than double Rs 4.43 crore a year earlier. Revenue from operations rose to Rs 87.68 crore from Rs 83.98 crore, while negative inventory changes and other income of Rs 3.56 crore lifted reported profitability.

How did Black Rose Industries perform in the September quarter?

Black Rose Industries recorded total revenue of Rs 91.25 crore in the September 2026 quarter, up from Rs 84.31 crore in the September 2025 quarter. Revenue from operations increased by Rs 3.70 crore year on year, while other income rose to Rs 3.56 crore from Rs 33.23 lakh. Profit before tax increased to Rs 14.29 crore from Rs 6.09 crore, with no exceptional items reported in either quarter.

Net profit rose by Rs 6.06 crore year on year to Rs 10.49 crore. Tax expense, including current and deferred tax, was Rs 3.80 crore, compared with Rs 1.66 crore a year earlier. Basic and diluted earnings per share, or EPS, were Rs 2.06, against Rs 0.87 in the prior-year quarter. Total comprehensive income was Rs 10.47 crore, compared with Rs 4.43 crore.

What caused Black Rose Industries’ profit increase?

Black Rose Industries’ largest year-on-year cost change was in inventories of finished goods, work-in-progress and traded goods. This line was negative Rs 13.74 crore in the September 2026 quarter, compared with a positive Rs 2.60 crore expense in September 2025. The reported shift reduced total expenses to Rs 76.96 crore from Rs 78.22 crore even as total revenue increased by Rs 6.94 crore.

The effect was partly offset by higher purchases of stock-in-trade, which rose to Rs 53.98 crore from Rs 46.64 crore, and by other expenses, which increased to Rs 11.71 crore from Rs 7.98 crore. Cost of materials consumed was Rs 20.84 crore, compared with Rs 17.87 crore. Employee benefits expense rose to Rs 1.78 crore from Rs 1.67 crore, while finance costs fell to Rs 19.71 lakh from Rs 50.92 lakh.

How did the September quarter compare with the June quarter?

Black Rose Industries’ September-quarter net profit was broadly unchanged sequentially at Rs 10.49 crore, compared with Rs 10.41 crore in the quarter ended June 30, 2026. Revenue from operations declined to Rs 87.68 crore from Rs 89.08 crore, but other income increased to Rs 3.56 crore from Rs 1.06 crore. Profit before tax rose to Rs 14.29 crore from Rs 14.14 crore.

The composition of expenses changed across the two quarters. Changes in inventories were negative Rs 13.74 crore in September, compared with a positive Rs 1.16 crore in June, while purchase of stock-in-trade rose to Rs 53.98 crore from Rs 37.44 crore. Other expenses were Rs 11.71 crore versus Rs 11.93 crore, and finance costs declined to Rs 19.71 lakh from Rs 24.12 lakh.

Based on the reported standalone figures, profit before tax was about 15.7% of total revenue in the September quarter, compared with about 7.2% a year earlier. Net profit was about 11.5% of total revenue, versus about 5.3% in September 2025. These are calculations from reported revenue and profit figures, rather than margins separately stated by Black Rose Industries.

What do the half-year results show for Black Rose Industries?

Black Rose Industries reported revenue from operations of Rs 176.76 crore for the half year ended September 30, 2026, compared with Rs 143.83 crore for the corresponding half year of 2025. Total revenue rose to Rs 181.38 crore from Rs 145.20 crore, while profit before tax increased to Rs 28.43 crore from Rs 11.88 crore. Net profit more than doubled to Rs 20.89 crore from Rs 8.67 crore.

For the six months, other income was Rs 4.62 crore, compared with Rs 1.37 crore a year earlier. Changes in inventories were negative Rs 11.59 crore, against a positive Rs 3.28 crore in the prior-year half. Purchase of stock-in-trade rose to Rs 91.42 crore from Rs 74.58 crore, and total expenses increased to Rs 152.96 crore from Rs 133.32 crore. Half-year EPS was Rs 4.10, compared with Rs 1.70.

Black Rose Industries identified chemicals as its single primary business segment under Indian Accounting Standard 108, or Ind AS 108, Operating Segments. It therefore did not disclose separate results by chemical product, geography or business division. The September-quarter results were unaudited, approved by the board on November 6, 2026, and accompanied by the statutory auditors’ unmodified limited review report.

What changed in Black Rose Industries’ balance sheet and cash flow?

Black Rose Industries’ total assets stood at Rs 240.68 crore at September 30, 2026, up from Rs 207.76 crore at March 31, 2026. Current assets increased to Rs 184.90 crore from Rs 152.90 crore, led by inventories of Rs 67.93 crore against Rs 47.99 crore. Investments rose to Rs 37.62 crore from Rs 20.01 crore, while trade receivables declined to Rs 67.82 crore from Rs 69.61 crore.

Equity increased to Rs 173.63 crore from Rs 169.28 crore, including other equity of Rs 168.53 crore. Current liabilities rose to Rs 61.82 crore from Rs 32.86 crore, with trade payables to creditors other than micro and small enterprises at Rs 46.74 crore compared with Rs 24.94 crore. Current borrowings were Rs 29 lakh at September 30, compared with Rs 14.91 lakh at March 31.

Net cash flow from operating activities was Rs 35.66 crore in the half year ended September 30, 2026. The increase in inventories used Rs 19.94 crore of cash, while the increase in payables, provisions and other liabilities contributed Rs 26.25 crore. Investing activities used Rs 20.18 crore, including Rs 50.56 crore spent on mutual fund purchases and Rs 34.22 crore received from mutual fund sales. Cash and cash equivalents ended the period at Rs 1.58 crore, down from Rs 2.93 crore at March 31.

Conclusion

Black Rose Industries’ September-quarter profit increase was substantially larger than its revenue growth. Standalone net profit reached Rs 10.49 crore as the negative Rs 13.74 crore inventory-change line, Rs 3.56 crore of other income and lower finance costs contributed to profit before tax of Rs 14.29 crore, despite higher stock-in-trade purchases and other expenses.

What to watch next is whether inventory-related movements remain material after inventories rose to Rs 67.93 crore at September 30 from Rs 47.99 crore at March 31. Subsequent financial disclosures can also show how the rise in current liabilities to Rs 61.82 crore and the period-end cash balance of Rs 1.58 crore develop.