Craftroot Retail Limited FY26 Profit Rises as Revenue Falls

Craftroot Retail Limited reported FY26 total revenue of ₹0.85 crore, down 70.28% from ₹2.86 crore in FY25, while net profit rose 214.29% to ₹0.22 crore. The contrasting movement reflects a year of business transition, with the company moving away from its earlier chemical operations toward the handicraft sector.

What were Craftroot Retail Limited's FY26 financial results?

Craftroot Retail Limited reported lower revenue but higher operating and net profit in FY26. Total revenue declined to ₹0.85 crore from ₹2.86 crore in FY25, while operating profit increased to ₹0.26 crore from ₹0.08 crore. Net profit rose to ₹0.22 crore from ₹0.07 crore.

The profit improvement came despite a substantially smaller revenue base. The company also reported FY26 profit after tax of ₹22.24 lakh in its directors' report, compared with ₹7.32 lakh in FY25. These figures are equivalent to about ₹0.22 crore and ₹0.07 crore, respectively, after normalising amounts into crore units.

The disclosed figures distinguish between total revenue and revenue from operations. The directors' report stated that total income for FY26 was ₹0.85 crore, including other income of ₹0.32 crore, while revenue from operations was reported separately at ₹2.76 crore. Investors reviewing the results should therefore note the different reporting lines used in the company disclosures.

Why did Craftroot Retail's revenue decline in FY26?

Craftroot Retail's reported revenue decline was linked to its exit from the chemical segment and transition toward handicraft activities. The company, formerly known as Nirbhay Colours India Limited, changed its core business during the year to include manufacturing, designing, processing, trading and marketing of handcrafted articles.

The directors' report said revenue from operations fell during this transition phase. The shift altered the company's operating base from its earlier chemical business, and the reported annual numbers capture a period in which the new handicraft operations were being established.

Profitability nevertheless improved on the reported figures. The company attributed the improvement to cost management and other income sources. Other income of ₹0.32 crore formed a material part of the ₹0.85 crore total income reported for FY26, which is relevant when assessing the relationship between revenue, operating performance and final profit.

How did Craftroot Retail perform in the June 2026 quarter?

Craftroot Retail reported a sequential decline in revenue, operating profit and net profit for the quarter ended June 2026. Revenue was ₹0.23 crore, compared with ₹0.55 crore in the March 2026 quarter, representing a 58.18% quarter-on-quarter decrease.

Operating profit declined to ₹0.09 crore in June 2026 from ₹0.21 crore in March 2026, a 57.14% decrease. Quarterly net profit was ₹0.09 crore, down 47.06% from ₹0.17 crore in the preceding quarter. The June 2026 earnings per share was reported at ₹0.66.

The quarterly decline follows a March quarter in which the company reported positive operating and net profit. The available disclosures do not provide a detailed segment-wise explanation for the June-quarter movement, so the reported changes should be considered alongside the company's broader business transition.

What do the disclosures mean for shareholders and operations?

The disclosures show that Craftroot Retail is reporting profit growth while its revenue profile is changing. For shareholders, the main financial point is that FY26 net profit increased even as total revenue fell sharply, making the composition of income and the progress of the handicraft business important areas to monitor.

The board recommended a final dividend of ₹0.05 per equity share for FY26, subject to shareholder approval. The statutory auditors, A. L. Thakkar & Co., issued an unmodified opinion on the audited financial results. The company also replied to a BSE warning concerning SEBI compliance associated with its name change.

Craftroot Retail closed its trading window effective October 1, 2026, until 48 hours after the declaration of unaudited results for the quarter ended September 30, 2026. Its September 24 filing said the board-meeting date for those results would be announced separately. The closure follows standard restrictions on trading by designated persons ahead of financial-result disclosures.

Conclusion

Craftroot Retail's FY26 results present two distinct trends: total revenue fell to ₹0.85 crore, while operating profit and net profit increased to ₹0.26 crore and ₹0.22 crore, respectively. The numbers were reported during a shift from chemical operations to handicraft-related activities, with other income also contributing to total income.

The next disclosed event to watch is the board meeting for the September 2026 quarter, for which the company has said the date will be announced in due course. That result will provide a further update on quarterly performance after the June 2026 decline and on the company's operations following the business transition.