Epigral revenue rises 27%, while quarterly profit falls 35%

Epigral Limited reported standalone revenue from operations of Rs 745.99 crore for the quarter ended September 30, 2026, up 27% from Rs 587.36 crore a year earlier. Profit after tax was Rs 64.42 crore, higher year on year but 35% below the Rs 99.18 crore recorded in the June 2026 quarter as expenses increased.

How did Epigral's September-quarter revenue and profit change?

Epigral increased September-quarter revenue and year-on-year profit, while its profit declined from the preceding quarter. Revenue from operations rose by Rs 158.63 crore to Rs 745.99 crore from Rs 587.36 crore in the quarter ended September 30, 2025, and was also above Rs 705.36 crore in the June 2026 quarter. Total income, including other income, was Rs 751.81 crore, compared with Rs 589.10 crore a year earlier and Rs 709.46 crore in June.

Profit after tax, or PAT, was Rs 64.42 crore for the three months ended September 30, 2026, against Rs 51.52 crore in the corresponding 2025 quarter. It was Rs 34.76 crore below the Rs 99.18 crore reported for the preceding three months ended June 30, 2026. Basic and diluted earnings per share, which the filing says are not annualised, were Rs 14.93, compared with Rs 11.94 a year earlier and Rs 22.99 in June.

Why did Epigral's profit fall from the June quarter?

Epigral's sequential profit decline followed an Rs 88.61 crore increase in total expenses, which exceeded the Rs 42.35 crore increase in total income. Total expenses rose to Rs 664.89 crore in the September quarter from Rs 576.28 crore in June, while profit before tax fell to Rs 86.92 crore from Rs 133.18 crore. The standalone results show no exceptional items in either quarter.

Cost of materials consumed increased to Rs 469.40 crore from Rs 430.18 crore in June. Changes in inventories of finished goods and work in progress moved to an expense of Rs 3.70 crore in September from a credit of Rs 37.14 crore in the prior quarter, a Rs 40.84 crore movement. Employee benefits expense declined to Rs 33.70 crore from Rs 36.70 crore, but that reduction did not offset the materials and inventory changes.

Finance costs rose to Rs 10.78 crore from Rs 7.22 crore between the June and September quarters. Depreciation and amortisation increased to Rs 44.23 crore from Rs 42.90 crore, power and fuel expense rose to Rs 37.37 crore from Rs 34.70 crore, and other expenses increased to Rs 65.71 crore from Rs 61.72 crore. The filing says power and fuel expense includes power procurement, electricity duty on power generation and related costs.

Tax expense was Rs 22.50 crore in the September quarter, below Rs 34 crore in June. The lower tax charge meant that the Rs 46.26 crore decline in profit before tax did not translate fully into PAT, although PAT still declined by Rs 34.76 crore. Epigral reported Rs 86.92 crore of profit before tax and Rs 64.42 crore of PAT for the September 2026 quarter.

What do Epigral's half-year figures show?

Epigral reported higher first-half revenue and pre-tax profit than in the corresponding 2025 period, but lower reported PAT. Revenue from operations for the half year ended September 30, 2026 was Rs 1,451.35 crore, up Rs 257.45 crore from Rs 1,193.90 crore a year earlier. Profit before tax rose to Rs 220.10 crore from Rs 176.68 crore, while PAT was Rs 163.60 crore versus Rs 211.93 crore.

Total income increased to Rs 1,461.27 crore from Rs 1,203.89 crore, while total expenses rose by Rs 213.96 crore to Rs 1,241.17 crore. Cost of materials consumed was Rs 899.58 crore, compared with Rs 667.04 crore in the previous year's half year. Changes in inventories remained a credit of Rs 33.44 crore, compared with a credit of Rs 20.47 crore a year earlier.

The gap between the increase in pre-tax profit and the decline in half-year PAT reflects tax expense of Rs 56.50 crore in the latest period, compared with a tax credit of Rs 35.25 crore a year earlier. Epigral said it exercised the income-tax option under Section 115BAA of the Income-tax Act from financial year 2025-26 and recognised a one-time impact on deferred tax liabilities in the half year ended September 2025 and year ended March 2026. Basic earnings per share for the latest half year were Rs 37.92, compared with Rs 49.12 a year earlier.

What changed in Epigral's balance sheet and cash flow?

Epigral's total assets increased to Rs 3,584.14 crore at September 30, 2026 from Rs 3,505.34 crore at March 31, 2026. Total equity rose to Rs 2,363.51 crore from Rs 2,221.47 crore, while total liabilities fell to Rs 1,220.63 crore from Rs 1,283.87 crore. Inventories increased by Rs 16.39 crore to Rs 365.02 crore, whereas trade receivables decreased to Rs 396.37 crore from Rs 416.53 crore.

Net cash generated from operating activities was Rs 140.84 crore in the half year ended September 2026, compared with Rs 267.31 crore in the previous-year period. Operating profit before working-capital changes rose to Rs 321.37 crore from Rs 299.74 crore, but working-capital changes became an outflow of Rs 137.18 crore against an inflow of Rs 8.66 crore. The latest movement included a Rs 16.39 crore increase in inventories, a Rs 62.71 crore increase in other assets and a Rs 52.04 crore decrease in trade payables.

Capital expenditure on property, plant and equipment, including capital work in progress, was Rs 87.97 crore in the six months ended September 2026, below Rs 235.68 crore in the corresponding period. Net cash used in investing activities was Rs 97.24 crore and financing activities used Rs 47.77 crore, including Rs 57.65 crore of long-term borrowing repayments. Cash and cash equivalents declined to Rs 85 lakh at September 30, 2026 from Rs 5.02 crore at the start of the half year.

Conclusion

Epigral's September-quarter results show revenue growth did not translate into sequential profit growth. Revenue rose to Rs 745.99 crore and PAT exceeded the Rs 51.52 crore reported a year earlier, but expenses increased faster than income versus June, with higher materials costs and the movement in inventory changes contributing to a lower Rs 64.42 crore PAT.

The disclosed developments to watch are Epigral's 19.80 megawatt wind-solar hybrid power arrangement in Gujarat and its new chemicals subsidiary. Under an energy supply agreement, Epigral will purchase at least 51% of the power producer's output for 25 years, while Epigral Advanced Materials Limited was incorporated on July 7, 2026 to manufacture chemicals with an initial equity investment of Rs 1 lakh.