Gokul Refoils Q2 profit rises 88% to Rs 6.6154 crore

Gokul Refoils and Solvent Limited reported consolidated net profit after tax of Rs 6.6154 crore for the quarter ended September 30, 2026, up 88% from Rs 3.5216 crore a year earlier, while revenue from operations increased 16% to Rs 1,237.1489 crore. The board approved the unaudited results on November 14, 2026.

How did Gokul Refoils perform in Q2 2026?

Gokul Refoils increased consolidated profit before tax to Rs 8.741 crore in the quarter ended September 30, 2026, from Rs 4.4018 crore in the corresponding quarter of 2025. Net profit after tax rose by Rs 3.0938 crore to Rs 6.6154 crore, while total comprehensive income reached Rs 6.557 crore against Rs 3.5216 crore a year earlier.

Revenue from operations rose by Rs 174.4965 crore year-on-year, from Rs 1,062.6524 crore to Rs 1,237.1489 crore. Total income increased to Rs 1,245.5733 crore from Rs 1,071.0982 crore, as other income was largely unchanged at Rs 8.4244 crore compared with Rs 8.4457 crore in the September 2025 quarter.

Gokul Refoils also reported a sequential rise from the quarter ended June 30, 2026. Revenue from operations increased from Rs 1,016.7483 crore, while net profit after tax rose from Rs 6.0834 crore. Basic and diluted earnings per equity share were Rs 0.67 in the September 2026 quarter, compared with Rs 0.61 in June 2026 and Rs 0.36 in September 2025.

What changed in Gokul Refoils' Q2 cost structure?

Gokul Refoils reported total expenses of Rs 1,236.8323 crore in Q2 2026, up from Rs 1,066.6964 crore in Q2 2025, broadly in line with the increase in total income. Cost of materials consumed rose to Rs 955.3046 crore from Rs 731.0684 crore, while purchases of stock-in-trade declined to Rs 177.5908 crore from Rs 268.9277 crore.

The change in inventories of finished goods, work in progress and stock-in-trade was an expense of Rs 63.4622 crore, compared with Rs 30.5502 crore a year earlier. Other expenses increased to Rs 23.1024 crore from Rs 18.8689 crore, and employee benefits expense rose to Rs 5.4035 crore from Rs 4.8805 crore. The filing does not provide management commentary attributing these movements to a specific operational factor.

Gokul Refoils' finance costs fell to Rs 9.1233 crore in Q2 2026 from Rs 9.637 crore a year earlier, while depreciation and amortisation increased to Rs 2.8456 crore from Rs 2.7636 crore. The consolidated statement shows no exceptional item, meaning the reported Rs 8.741 crore profit before tax was unchanged by exceptional gains or charges.

What were Gokul Refoils' first-half results?

Gokul Refoils reported net profit after tax of Rs 12.6989 crore for the half year ended September 30, 2026, up from Rs 7.3806 crore in the corresponding 2025 half year. Revenue from operations rose to Rs 2,253.8972 crore from Rs 1,989.0814 crore, while profit before tax increased to Rs 16.7267 crore from Rs 9.7101 crore.

First-half total comprehensive income increased to Rs 12.5821 crore from Rs 7.2897 crore. Finance costs were Rs 18.417 crore, marginally below Rs 18.4504 crore in the prior-year period, despite the higher revenue base. Employee benefits expense increased to Rs 10.5999 crore from Rs 9.7264 crore, and depreciation and amortisation rose to Rs 5.6233 crore from Rs 5.4686 crore.

The half-year results include a different quarterly revenue pattern in the standalone holding company figures. Standalone revenue from operations was Rs 72.2084 crore in the September 2026 quarter, compared with Rs 21.6367 crore in June 2026 and Rs 262.068 crore in September 2025; standalone net profit was Rs 0.9032 crore, versus Rs 1.3481 crore in June 2026 and Rs 0.4064 crore a year earlier.

Did Gokul Refoils convert first-half profit into operating cash?

No, Gokul Refoils reported net cash used in operating activities of Rs 2.9604 crore for the half year ended September 30, 2026, compared with net cash generated from operations of Rs 28.0998 crore in the corresponding 2025 period. This differed from the increase in first-half profit before tax to Rs 16.7267 crore from Rs 9.7101 crore.

Cash generated from operations was negative Rs 0.3008 crore before direct tax and retirement-benefit payments, compared with positive Rs 30.4588 crore a year earlier. The cash-flow statement records a Rs 29.03 crore increase in other current assets and a Rs 11.7359 crore decrease in trade payables, while inventories increased by Rs 6.1009 crore.

Trade receivables moved in the opposite direction, declining by Rs 9.1336 crore during the first half, compared with a Rs 12.4785 crore decline in the prior-year half. Direct tax paid or received was an outflow of Rs 2.6346 crore, compared with Rs 2.0263 crore, and retirement benefits paid were Rs 0.025 crore against Rs 0.3327 crore.

What does Gokul Refoils' September 2026 balance sheet show?

Gokul Refoils reported consolidated total assets of Rs 877.2368 crore as at September 30, 2026, down from Rs 910.4882 crore at March 31, 2026. Total equity increased to Rs 375.9789 crore from Rs 363.3968 crore, with other equity rising to Rs 356.1799 crore from Rs 343.5978 crore.

Current borrowings declined to Rs 347.8473 crore at September 30 from Rs 382.7427 crore at March 31. Inventories increased to Rs 193.4016 crore from Rs 187.3008 crore, while trade receivables fell to Rs 199.8892 crore from Rs 210.1694 crore. Cash and cash equivalents declined to Rs 26.8436 crore from Rs 60.3097 crore.

Non-current loans rose to Rs 56.7055 crore from Rs 29.1204 crore, while current investments decreased to Rs 50.0152 crore from Rs 76.1005 crore. Total liabilities were Rs 501.2579 crore at September 30, compared with Rs 547.0914 crore at the March year-end, alongside the reduction in current borrowings.

What did the auditor's limited review cover?

The independent auditor issued an unmodified limited-review conclusion on Gokul Refoils' consolidated unaudited results for the quarter and half year ended September 30, 2026. The review was performed under Standard on Review Engagements 2410, which the auditor said is substantially narrower in scope than an audit and does not provide audit assurance.

The consolidated group includes Gokul Agri International Limited as a wholly owned subsidiary, Professional Commodity Services Pvt. Ltd. as a step-down subsidiary, and Gujarat Gokul Power Limited as an associate. A subsidiary reviewed by its own auditor reported Q2 revenue of Rs 1,213.3311 crore, net profit after tax of Rs 5.7039 crore and assets of Rs 736.9735 crore as at September 30, 2026.

A further subsidiary not reviewed by the reporting auditor had nil revenue and a Q2 net loss after tax of Rs 0.37 lakh. The associate's share of net profit or loss was nil for the quarter and half year, and the auditor said its conclusion was not modified in respect of the subsidiary and associate information.

Conclusion

Gokul Refoils' September 2026 quarter showed net profit after tax rising faster than revenue, with profit increasing 88% to Rs 6.6154 crore as revenue from operations grew 16% to Rs 1,237.1489 crore. First-half profit also increased, but operating cash flow changed from an inflow of Rs 28.0998 crore in the prior-year half to an outflow of Rs 2.9604 crore.

The next reported results will show whether Gokul Refoils can sustain the September-quarter profit level and whether working-capital movements reverse, particularly after inventories rose to Rs 193.4016 crore and other current assets increased by Rs 29.03 crore in the half year. The filing discloses no earnings target, operating plan or scheduled corporate event beyond the approved September 2026 results.