Indag Rubber first-half profit rises 53% to Rs 8.35 crore

Indag Rubber Limited reported audited standalone profit after tax of Rs 8.35 crore for the six months ended 30 September 2026, up 53% from Rs 5.46 crore a year earlier, as revenue from operations rose 28% to Rs 125.04 crore. Materials consumed increased 42% to Rs 93.21 crore during the same period.

How did Indag Rubber perform in the first half of 2026-27?

Indag Rubber recorded higher revenue, profit before tax and profit after tax in the half year ended 30 September 2026. Revenue from operations increased by Rs 27.71 crore from Rs 97.34 crore in the corresponding 2025 half year, while total income rose to Rs 130.28 crore from Rs 102.96 crore. Profit before tax increased 56% to Rs 10.93 crore from Rs 7.00 crore.

Profit after tax rose by Rs 2.90 crore to Rs 8.35 crore from Rs 5.46 crore in the half year ended 30 September 2025. Basic and diluted earnings per share, or EPS, were Rs 3.18 for the six-month period, compared with Rs 2.08 a year earlier. Total comprehensive income, which includes items reported outside profit and loss, was Rs 9.20 crore against Rs 7.74 crore.

The profit increase came alongside a higher materials bill. Cost of materials consumed rose by Rs 27.53 crore to Rs 93.21 crore from Rs 65.68 crore. Changes in inventories generated a credit of Rs 9.80 crore in the 2026 half year, compared with a Rs 3.12 crore credit in the prior-year period, providing a larger offset to expenses.

Why did Indag Rubber's September-quarter profit fall from June?

Indag Rubber's profit after tax fell sequentially to Rs 3.28 crore in the quarter ended 30 September 2026 from Rs 5.07 crore in the June 2026 quarter. Profit before tax declined to Rs 4.15 crore from Rs 6.78 crore, even as revenue from operations increased to Rs 67.49 crore from Rs 57.55 crore.

Expenses increased faster than total income during the September quarter. Total expenses rose by Rs 12.02 crore to Rs 65.69 crore, while total income increased by Rs 9.39 crore to Rs 69.84 crore. The inventory-change credit narrowed to Rs 2.70 crore from Rs 7.09 crore in the June quarter, reducing the offset against costs.

The September 2026 quarter also had higher revenue but lower profit than the September 2025 quarter. Revenue from operations rose 29% from Rs 52.33 crore, while profit after tax declined from Rs 3.62 crore to Rs 3.28 crore. Materials consumed increased to Rs 49.92 crore from Rs 35.64 crore, and other expenses rose to Rs 8.40 crore from Rs 7.38 crore.

Tax expense differed between the two 2026 quarters. Total tax expense was Rs 87 lakh in the September quarter, below Rs 1.71 crore in the June quarter. Deferred tax was an expense of Rs 11.96 lakh in September after a deferred-tax credit of Rs 22.94 lakh in June, partly limiting the quarter-on-quarter decline in reported profit.

What changed in Indag Rubber's balance sheet and working capital?

Indag Rubber's total assets were Rs 279.64 crore at 30 September 2026, compared with Rs 278.52 crore at 31 March 2026. Total equity increased to Rs 240.89 crore from Rs 235.63 crore, while total liabilities fell to Rs 38.76 crore from Rs 42.90 crore over the six months.

Current assets rose by Rs 9.38 crore to Rs 142.00 crore, led by inventory, which increased to Rs 58.27 crore from Rs 47.21 crore. Trade receivables also rose to Rs 25.40 crore from Rs 22.19 crore. Current investments declined to Rs 47.71 crore from Rs 52.59 crore.

Non-current investments declined to Rs 88.25 crore at 30 September 2026 from Rs 93.95 crore at 31 March 2026. Property, plant and equipment stood at Rs 24.43 crore, down from Rs 24.96 crore, while investment property was Rs 17.19 crore, down from Rs 17.73 crore.

Current liabilities fell to Rs 31.18 crore from Rs 34.59 crore. Dues to creditors other than micro and small enterprises declined to Rs 17.50 crore from Rs 21.11 crore, while dues to micro and small enterprises decreased to Rs 3.70 crore from Rs 4.76 crore. Other financial liabilities rose to Rs 5.19 crore from Rs 4.79 crore.

What did Indag Rubber report on cash flow and audit matters?

Indag Rubber used Rs 7.69 crore in operating activities during the half year ended 30 September 2026, compared with operating cash generated of Rs 14.67 crore in the prior-year half year. The change occurred despite profit before tax increasing to Rs 10.93 crore from Rs 7.00 crore, because working-capital movements consumed cash.

Inventory increased by Rs 11.06 crore and trade receivables increased by Rs 3.05 crore in the 2026 half year. Trade payables decreased by Rs 4.67 crore. These movements contributed to cash generated from operations of negative Rs 5.57 crore, compared with positive Rs 17.11 crore in the 2025 half year.

Investing activities generated Rs 13.01 crore in the 2026 half year, compared with an outflow of Rs 10.47 crore a year earlier. Proceeds from the sale or maturity of investments were Rs 34.56 crore, exceeding purchases of Rs 20.94 crore. After a financing outflow of Rs 4.45 crore, including dividends paid of Rs 3.95 crore, cash and cash equivalents increased to Rs 4.56 crore from Rs 3.62 crore at 31 March 2026.

Khanna & Annadhanam issued an unmodified opinion dated 6 November 2026 on the standalone interim results. Its emphasis-of-matter paragraph referred to the valuation of Indag Rubber's investment in an oil exploration company in Nigeria, where fair value depends on successful exploration and hydrocarbon production currently on hold because of Nigerian government restrictions on gas flaring.

Conclusion

Indag Rubber's first-half results combined a 28% rise in revenue to Rs 125.04 crore with a 53% increase in profit after tax to Rs 8.35 crore. The half-year outcome nevertheless included a lower September-quarter profit of Rs 3.28 crore than the Rs 5.07 crore reported for June, while materials consumed rose 42% to Rs 93.21 crore.

The next results will indicate whether the Rs 11.06 crore increase in inventory and Rs 3.05 crore rise in receivables continue to affect operating cash flow after the first-half outflow of Rs 7.69 crore. The valuation of the Nigerian oil exploration investment also remains unresolved while exploration and production are on hold under the disclosed gas-flaring restrictions.