Garg Furnace September Profit Rises to Rs 2.93 Crore Standalone

Garg Furnace Limited reported standalone profit after tax of Rs 2.93 crore for the quarter ended September 30, 2026, up from Rs 2.74 crore a year earlier, as revenue from operations reached Rs 68.33 crore. The board approved the unaudited results on November 14, 2026.

How did Garg Furnace perform in the September 2026 quarter?

Garg Furnace reported standalone profit after tax of Rs 2.93 crore in the quarter ended September 30, 2026, compared with Rs 2.74 crore in the September 2025 quarter and Rs 1.68 crore in the June 2026 quarter. Revenue from operations was Rs 68.33 crore, up from Rs 61.38 crore a year earlier and Rs 57.18 crore in the preceding quarter.

Total income, including other income, was Rs 68.46 crore in the September quarter, versus Rs 61.47 crore in the corresponding quarter a year earlier and Rs 57.32 crore in June 2026. Profit before tax rose to Rs 3.35 crore from Rs 2.74 crore a year earlier, while total comprehensive income was Rs 2.93 crore compared with Rs 2.75 crore.

Garg Furnace’s revenue rose by Rs 11.15 crore sequentially, while profit after tax increased by Rs 1.25 crore from the June 2026 quarter. Basic earnings per equity share were Rs 4.29, compared with Rs 2.47 in June 2026 and Rs 4.75 in the September 2025 quarter; the company said quarterly earnings per share were not annualised.

What changed in Garg Furnace’s September-quarter costs?

Garg Furnace reported total expenses of Rs 65.11 crore for the September 2026 quarter, compared with Rs 51.73 crore in the year-earlier quarter and Rs 54.96 crore in June 2026. The increase in expenses was greater than the year-on-year increase of Rs 6.95 crore in revenue from operations, while profit before tax nevertheless rose by Rs 61.25 lakh.

Cost of materials consumed increased to Rs 48.50 crore from Rs 38.37 crore a year earlier, while purchases of stock-in-trade declined to Rs 9.02 crore from Rs 17.79 crore. The inventory-change line recorded a negative Rs 1.06 crore in the September 2026 quarter, compared with no amount displayed for the corresponding quarter in the filing.

Other expenses were Rs 7.18 crore, against Rs 6.96 crore a year earlier. Employee benefits expense was Rs 56.95 lakh, depreciation and amortisation was Rs 42.76 lakh, and finance costs were Rs 46.25 lakh; the corresponding September 2025 figures were Rs 58.77 lakh, Rs 43.62 lakh and Rs 2.32 lakh, respectively.

Tax expense was Rs 42.82 lakh in the September 2026 quarter, comprising current tax of Rs 33.22 lakh and deferred tax of Rs 9.60 lakh. In June 2026, total tax expense was Rs 67.68 lakh, including deferred tax of Rs 57.80 lakh, compared with September-quarter profit before tax of Rs 2.35 crore.

What were Garg Furnace’s first-half results?

Garg Furnace reported profit before tax of Rs 5.71 crore for the half year ended September 30, 2026, compared with Rs 3.99 crore for the half year ended September 30, 2025. Revenue from operations increased to Rs 125.51 crore from Rs 121.53 crore, and total income increased to Rs 125.78 crore from Rs 121.85 crore.

Total expenses for the six months were Rs 120.07 crore, compared with Rs 117.86 crore in the prior-year half. Materials consumed rose to Rs 91.29 crore from Rs 79.10 crore, whereas purchases of stock-in-trade fell to Rs 13.25 crore from Rs 35.54 crore.

The inventory-change line was negative Rs 1.23 crore in the September 2026 half year, against negative Rs 7.69 crore in the prior-year period. Total comprehensive income was Rs 4.60 crore, compared with Rs 4.01 crore, while basic and diluted earnings per share were each Rs 6.76 versus Rs 6.91 a year earlier.

Paid-up equity share capital remained Rs 6.81 crore at September 30, 2026. Garg Furnace said it manufactures iron and steel products, including M.S. Round, ingot and wire rod, and treats this activity as a single reportable business segment under Indian Accounting Standard 108.

What do Garg Furnace’s balance sheet and cash flow show?

Garg Furnace reported total assets of Rs 145.63 crore at September 30, 2026, compared with Rs 133.32 crore at March 31, 2026. Current assets increased to Rs 91.84 crore from Rs 78.44 crore, including inventories of Rs 22.06 crore and trade receivables of Rs 24.05 crore.

Inventories were Rs 19.58 crore and trade receivables were Rs 19.78 crore at March 31, 2026, meaning both balances increased during the first half. Other current assets rose to Rs 39.99 crore from Rs 29.83 crore, while cash and cash equivalents declined to Rs 16.91 lakh from Rs 3.50 crore.

Total equity increased to Rs 103.48 crore from Rs 98.87 crore, with other equity rising to Rs 96.67 crore from Rs 92.06 crore. Non-current borrowings were Rs 13.07 crore versus Rs 12.48 crore at March 31, while current borrowings were Rs 7.19 crore compared with Rs 5.04 crore.

Net cash used in operating activities was Rs 5.35 crore in the half year ended September 30, 2026, compared with Rs 3.04 crore used in the prior-year half. A Rs 12.46 crore working-capital outflow included a Rs 13.91 crore increase in trade and other receivables, partly offset by a Rs 3.93 crore increase in trade payables and other liabilities.

What is Garg Furnace’s convertible-warrant plan?

Garg Furnace approved an issue of 13.98 lakh convertible warrants at Rs 126.50 each, aggregating to Rs 17.68 crore. Each warrant gives its holder the right to apply for one fully paid-up equity share with a face value of Rs 10 and a premium of Rs 116.50 per share.

The board approved the proposal on July 31, 2026, and shareholders approved it on August 29, 2026. Warrant holders have 18 months to apply for and be allotted the related equity shares under the terms disclosed in the filing.

The cash flow statement for the half year ended September 30, 2026 did not show money received against share warrants. By comparison, the corresponding 2025 half-year statement recorded Rs 26.33 crore of warrant proceeds and net financing cash inflow of Rs 26.23 crore, versus Rs 1.88 crore of financing cash inflow in the latest half year.

Conclusion

Garg Furnace’s September-quarter results show higher revenue, profit before tax and profit after tax than both the year-earlier and preceding quarters. Revenue from operations reached Rs 68.33 crore and profit after tax was Rs 2.93 crore, while first-half profit before tax rose to Rs 5.71 crore from Rs 3.99 crore a year earlier.

The next disclosed development to watch is the 18-month window for holders of the approved 13.98 lakh warrants to apply for equity shares. The company’s next financial updates can also show whether the Rs 13.91 crore rise in trade and other receivables and Rs 5.35 crore operating cash outflow change after September 30, 2026.