HLE Glascoat Q2 profit rises 15% despite revenue decline

HLE Glascoat Limited reported consolidated profit of Rs 16.0197 crore for the quarter ended September 30, 2026, up 15% from Rs 13.9573 crore a year earlier, although revenue from operations declined 1% to Rs 346.6542 crore. Profit also recovered sharply from Rs 2.0538 crore in the preceding June 2026 quarter.

How did HLE Glascoat perform in the September quarter?

HLE Glascoat’s consolidated profit increased year on year despite lower revenue in the September 2026 quarter. Profit for the period rose to Rs 16.0197 crore from Rs 13.9573 crore in the quarter ended September 30, 2025, while revenue from operations fell from Rs 350.7752 crore to Rs 346.6542 crore. Basic and diluted earnings per share increased to Rs 2.06 from Rs 1.76.

The sequential change was larger than the year-on-year movement. Revenue rose from Rs 300.7509 crore in the June 2026 quarter, while profit increased from Rs 2.0538 crore. Profit before tax was Rs 20.7043 crore in September 2026, against Rs 4.3679 crore in June 2026 and Rs 19.1561 crore in September 2025.

Which HLE Glascoat segments changed during the quarter?

HLE Glascoat’s Glass Lined Products segment was the largest revenue contributor in the September quarter, reporting Rs 195.3959 crore. That was higher than Rs 157.3021 crore a year earlier and Rs 193.1279 crore in June 2026. Its profit before interest and tax increased to Rs 11.5902 crore from Rs 4.1151 crore in September 2025 and Rs 6.2073 crore in the preceding quarter.

Filtration, Drying and Other Equipment recorded revenue of Rs 102.0407 crore, down from Rs 137.09 crore a year earlier but above Rs 96.8058 crore in June. Its segment profit before interest and tax was Rs 11.7464 crore, compared with Rs 19.1889 crore in September 2025 and Rs 11.6519 crore three months earlier.

Heat Transfer Equipment revenue was Rs 48.7908 crore, compared with Rs 55.6098 crore a year earlier, but rose from Rs 10.5537 crore in June 2026. The segment reported profit before interest and tax of Rs 6.8435 crore after a loss of Rs 4.0673 crore in June, although this remained below Rs 8.434 crore in the year-earlier quarter.

What moved HLE Glascoat’s quarterly costs and profit?

HLE Glascoat reported total expenses of Rs 328.2754 crore in the September 2026 quarter, down from Rs 330.4784 crore a year earlier despite rising from Rs 298.0825 crore in June. Changes in inventories of finished goods, work-in-progress and stock-in-trade were negative Rs 26.7172 crore, compared with a positive Rs 5.0656 crore in the September 2025 quarter.

Employee benefits expense increased to Rs 72.9155 crore from Rs 61.6784 crore a year earlier, while other expenses rose to Rs 51.0665 crore from Rs 39.7528 crore. Finance costs declined to Rs 8.3901 crore from Rs 9.3285 crore, whereas depreciation and amortisation increased to Rs 9.8927 crore from Rs 8.60 crore.

Total income was Rs 348.9797 crore, including other income of Rs 2.3255 crore, against total income of Rs 352.7097 crore and other income of Rs 1.9345 crore a year earlier. Tax expense was Rs 4.6846 crore, compared with Rs 5.1988 crore in September 2025, and included a deferred-tax credit of Rs 0.4528 crore.

How did HLE Glascoat perform in the first half?

HLE Glascoat’s revenue from operations for the half year ended September 30, 2026 increased 2% to Rs 647.4051 crore from Rs 634.722 crore a year earlier. However, first-half profit fell 43% to Rs 18.0735 crore from Rs 31.8223 crore, as the September-quarter recovery did not offset the lower June-quarter profit of Rs 2.0538 crore.

Profit before tax for the half year declined to Rs 25.0722 crore from Rs 42.0468 crore in the comparable prior-year period. Total expenses increased to Rs 626.3579 crore from Rs 593.7797 crore, while total income rose to Rs 651.4301 crore from Rs 638.9017 crore. First-half basic earnings per share declined to Rs 2.46 from Rs 4.16.

Glass Lined Products produced first-half revenue of Rs 388.5238 crore, up from Rs 286.9257 crore, and segment profit before interest and tax rose to Rs 17.7975 crore from Rs 14.6105 crore. Filtration, Drying and Other Equipment revenue declined to Rs 198.8465 crore from Rs 252.1439 crore, while Heat Transfer Equipment revenue fell to Rs 59.3445 crore from Rs 94.1724 crore.

What do HLE Glascoat’s balance-sheet figures show?

HLE Glascoat had consolidated total assets of Rs 1,438.4582 crore at September 30, 2026, compared with Rs 1,381.7992 crore at March 31, 2026. Inventories increased to Rs 439.9386 crore from Rs 355.7557 crore, while trade receivables declined to Rs 250.9783 crore from Rs 269.8851 crore.

Total consolidated liabilities were Rs 811.3708 crore at September 30, compared with Rs 763.5507 crore at March 31. Current borrowings declined to Rs 197.591 crore from Rs 212.6031 crore, while non-current borrowings increased to Rs 129.9268 crore from Rs 100.6487 crore. Total equity increased to Rs 627.0874 crore from Rs 618.2485 crore.

Glass Lined Equipment held segment assets of Rs 736.5676 crore at September 30, followed by Filtration, Drying and Other Equipment at Rs 368.3828 crore and Heat Transfer Equipment at Rs 324.2547 crore. The consolidated results include eight subsidiaries, including Thaletec GmbH, Thaletec USA Inc., Kinam Engineering Industries Private Limited and HLE Surface Technologies GmbH.

Conclusion

HLE Glascoat’s September-quarter result combined a 15% increase in consolidated profit to Rs 16.0197 crore with a 1% revenue decline to Rs 346.6542 crore. Glass Lined Products expanded both revenue and segment profit, while Heat Transfer Equipment returned to a segment profit from its June-quarter loss; nevertheless, first-half profit of Rs 18.0735 crore remained below Rs 31.8223 crore a year earlier.

The unresolved items to watch are whether the September-quarter recovery can continue and how working capital develops after inventories rose to Rs 439.9386 crore at September 30, 2026 from Rs 355.7557 crore at March 31. The company’s Board took the unaudited September-quarter and first-half results on record on November 2, 2026, and the statutory auditors issued an unqualified review report.