Gujarat Craft revenue rose 18% but net profit fell 76% in September quarter

Gujarat Craft Industries Limited reported revenue from operations of Rs 52.60 crore for the quarter ended September 30, 2026, up 18% from Rs 44.49 crore a year earlier, while profit after tax fell 76% to Rs 12.85 lakh from Rs 53 lakh. Higher material consumption and an adverse inventory movement outweighed the increase in sales.

Why did Gujarat Craft's profit fall despite higher revenue?

Gujarat Craft's profit after tax fell to Rs 12.85 lakh in the quarter ended September 30, 2026, from Rs 53 lakh in the quarter ended September 30, 2025, despite revenue rising by Rs 8.11 crore. Profit before tax declined to Rs 17.20 lakh from Rs 66.86 lakh, before a deferred-tax charge of Rs 4.35 lakh in the latest quarter.

The largest change was in production and inventory-related costs. Cost of materials consumed rose to Rs 33.69 crore from Rs 26.53 crore, an increase of Rs 7.16 crore. The changes in inventories line, covering finished goods, work-in-progress and stock-in-trade, became an expense of Rs 2.56 crore, compared with a credit of Rs 3.29 crore a year earlier.

That inventory movement represented a Rs 5.86 crore adverse year-on-year swing. Total income increased to Rs 52.64 crore in the September 2026 quarter from Rs 44.53 crore in the prior-year quarter, but total expenses increased to Rs 52.47 crore from Rs 43.86 crore. The increase in expenses was therefore Rs 8.61 crore, exceeding the rise in total income.

How did Gujarat Craft's September-quarter expenses change?

Gujarat Craft reported total expenses of Rs 52.47 crore for the September 2026 quarter, compared with Rs 43.86 crore a year earlier. Materials consumed accounted for most of the increase, while the inventory-change line moved from a credit to an expense during the two reported quarters.

Finance costs rose to Rs 1.67 crore from Rs 1.40 crore, and depreciation and amortisation increased to Rs 1.61 crore from Rs 1.40 crore. These increases were partly offset by lower purchases of stock-in-trade, which declined to Rs 1.39 crore from Rs 3.81 crore, and other expenses, which fell to Rs 9.39 crore from Rs 11.47 crore.

Gujarat Craft also recorded higher employee-benefit expense of Rs 2.15 crore in the September 2026 quarter, versus Rs 2.56 crore a year earlier, which was a reduction rather than an increase. Other income was Rs 4.33 lakh, compared with Rs 3.80 lakh in the September 2025 quarter, and was materially below Rs 60.44 lakh reported in the preceding June 2026 quarter.

Did Gujarat Craft improve from the June 2026 quarter?

Gujarat Craft improved sequentially from the June 2026 quarter, with revenue rising to Rs 52.60 crore in September from Rs 43.89 crore in June. Profit after tax increased to Rs 12.85 lakh from Rs 5.70 lakh, while profit before tax increased to Rs 17.20 lakh from Rs 7.65 lakh.

The sequential revenue increase was Rs 8.71 crore, while cost of materials consumed rose to Rs 33.69 crore from Rs 24.47 crore. Purchases of stock-in-trade declined to Rs 1.39 crore from Rs 3.45 crore, and the inventory-change expense declined to Rs 2.56 crore from Rs 3.49 crore.

The September quarter's higher pre-tax profit came despite a decline in other income to Rs 4.33 lakh from Rs 60.44 lakh in June. Finance costs increased to Rs 1.67 crore from Rs 1.56 crore, while depreciation and amortisation was broadly unchanged at Rs 1.61 crore, compared with Rs 1.61 crore in the preceding quarter.

What were Gujarat Craft's first-half results?

Gujarat Craft reported revenue from operations of Rs 96.48 crore for the half year ended September 30, 2026, up from Rs 92.03 crore in the corresponding period of 2025. Profit after tax, however, fell to Rs 18.55 lakh from Rs 95.47 lakh, while profit before tax declined to Rs 24.85 lakh from Rs 1.33 crore.

For the six-month period, material consumption was Rs 58.16 crore, marginally below Rs 58.48 crore in the year-earlier half. The inventory-change line was an expense of Rs 6.05 crore, compared with a credit of Rs 9.97 crore in the corresponding 2025 period, a Rs 16.02 crore adverse movement.

Finance costs increased to Rs 3.23 crore from Rs 2.84 crore, and depreciation and amortisation rose to Rs 3.22 crore from Rs 2.69 crore. Other expenses declined to Rs 17.05 crore from Rs 22.70 crore, while purchases of stock-in-trade fell to Rs 4.84 crore from Rs 9.01 crore.

The half-year tax expense comprised deferred tax of Rs 6.30 lakh. In the corresponding 2025 half year, current tax was Rs 38 lakh, deferred tax was Rs 32.86 lakh and there was a Rs 33 lakh excess provision of income tax relating to earlier years.

What does Gujarat Craft's September balance sheet show?

Gujarat Craft reported total assets of Rs 161.80 crore as of September 30, 2026, compared with Rs 164.42 crore as of March 31, 2026. Property, plant and equipment increased to Rs 64.03 crore from Rs 53.81 crore, while inventories fell to Rs 47.87 crore from Rs 57.13 crore.

Trade receivables increased to Rs 30.20 crore at September 30 from Rs 21.18 crore at March 31. Cash and cash equivalents were Rs 2.71 lakh at September 30, compared with Rs 3.28 lakh at the start of the financial year, according to the half-year cash-flow statement.

Total equity was Rs 64.11 crore at September 30, compared with Rs 64.10 crore at March 31. Total liabilities declined to Rs 97.69 crore from Rs 100.31 crore, including non-current liabilities of Rs 33.60 crore, down from Rs 36.53 crore.

Gujarat Craft stated that it operates in one reportable segment, plastic packing material. It therefore did not provide separate revenue, profit or asset figures by product category or geography under Indian Accounting Standard 108, the accounting standard covering segment reporting.

Conclusion

Gujarat Craft's September-quarter result shows that an 18% increase in revenue did not translate into higher earnings. Material consumption increased by Rs 7.16 crore and the inventory-change line shifted from a Rs 3.29 crore credit to a Rs 2.56 crore expense, leaving profit after tax at Rs 12.85 lakh versus Rs 53 lakh a year earlier.

The next results will show whether the sequential increase in profit after tax from Rs 5.70 lakh in the June 2026 quarter can continue. The disclosed cost of materials, inventory movement, finance costs and trade receivables of Rs 30.20 crore are the reported items to watch as Gujarat Craft remains a single-segment plastic packing material business.