Indef Manufacturing Q2 profit falls 53% despite revenue gain

Indef Manufacturing Limited reported consolidated profit after tax of Rs 2.90 crore for the quarter ended September 30, 2026, 53% below Rs 6.22 crore a year earlier, even as revenue from operations rose 5% to Rs 51.71 crore. The decline followed a fall in other income and higher operating expenses.

Why did Indef Manufacturing’s Q2 profit decline?

Indef Manufacturing’s consolidated profit declined because total income slipped to Rs 51.65 crore from Rs 52.01 crore while total expenses rose to Rs 47.58 crore from Rs 44.58 crore in the September 2026 quarter. Profit before tax consequently declined 45% to Rs 4.06 crore from Rs 7.42 crore, and profit after tax fell to Rs 2.90 crore from Rs 6.22 crore.

The principal movement in income outside operations was other income, which changed from Rs 2.70 crore in the quarter ended September 30, 2025 to a negative Rs 6.51 lakh in the latest quarter. That Rs 2.76 crore year-on-year swing more than offset the Rs 2.40 crore increase in revenue from operations, which rose to Rs 51.71 crore from Rs 49.31 crore.

The result was approved by Indef Manufacturing’s board on November 2, 2026, and is unaudited. Kanu Doshi Associates LLP’s review report dated November 2, 2026 stated that nothing had come to its attention to suggest the consolidated results did not disclose the required information, while also noting that a review provides less assurance than an audit.

How did Indef Manufacturing’s costs change in Q2?

Indef Manufacturing’s September-quarter expense increase was led by material cost, employee benefits and other expenses. Cost of materials consumed increased to Rs 29.03 crore from Rs 26.47 crore, employee benefits expense rose to Rs 7.92 crore from Rs 7.18 crore, and other expenses increased to Rs 10.25 crore from Rs 9.39 crore.

Purchases of stock-in-trade rose to Rs 1.04 crore in the September 2026 quarter from Rs 86.15 lakh a year earlier. This was partly offset by a larger negative inventory-change charge of Rs 2.19 crore, compared with Rs 87.53 lakh in the corresponding quarter, while depreciation and amortisation declined slightly to Rs 1.43 crore from Rs 1.45 crore.

Finance costs were broadly stable at Rs 11.03 lakh in the latest September quarter, compared with Rs 11.20 lakh a year earlier. The larger expense categories nevertheless lifted total expenses by Rs 2.99 crore, or about 7%, at a time when total income declined by Rs 36.07 lakh because the reduction in other income exceeded the revenue gain.

Indef Manufacturing operates in one primary segment, material handling equipment, according to the results. The filing therefore does not provide revenue, profit or asset breakouts across separate operating segments under Indian Accounting Standard 108, Segment Reporting.

How did Indef Manufacturing perform in the first half and generate cash?

Indef Manufacturing’s consolidated first-half profit after tax fell 29% to Rs 8.38 crore for the half year ended September 30, 2026 from Rs 11.88 crore a year earlier. First-half revenue from operations declined 3% to Rs 86.17 crore from Rs 89.01 crore, while total income fell to Rs 94.88 crore from Rs 97.01 crore.

The half-year comparison shows that total expenses increased to Rs 84.53 crore from Rs 82.02 crore, reducing profit before tax to Rs 10.35 crore from Rs 14.99 crore. Other income was Rs 8.70 crore in the latest first half, compared with Rs 7.99 crore a year earlier, but this increase did not offset the revenue reduction and higher expenses.

Operating cash flow also changed direction in the first half. Net cash used in operating activities was Rs 7.75 crore for the half year ended September 30, 2026, compared with net cash generated of Rs 12.13 crore in the corresponding period of 2025. Cash generated from operations was negative Rs 3.96 crore, versus positive Rs 16.08 crore a year before.

The cash-flow statement records a Rs 6.32 crore increase in inventory and a Rs 7.94 crore increase in other current assets during the latest half year, against a Rs 3.64 crore reduction in trade receivables. At September 30, 2026, consolidated inventories stood at Rs 37.55 crore, up from Rs 31.52 crore at March 31, 2026, while cash and cash equivalents fell to Rs 1.12 crore from Rs 5.56 crore.

What does Indef Manufacturing’s consolidated result include?

Indef Manufacturing’s consolidated results include subsidiaries Swift Industries Limited and Daedalus Lift & Access Equipment Private Limited. The group reported revenue of Rs 51.71 crore and profit after tax of Rs 2.90 crore in the September 2026 quarter, compared with the standalone company’s Rs 48.16 crore revenue and Rs 3.85 crore profit after tax.

Profit attributable to Indef Manufacturing shareholders was Rs 3.01 crore in the latest quarter, down from Rs 6.26 crore a year earlier. Non-controlling interests recorded a loss of Rs 11.15 lakh, compared with a Rs 3.50 lakh loss in the September 2025 quarter, resulting in consolidated profit after tax of Rs 2.90 crore.

Basic and diluted earnings per share, not annualised, were Rs 0.94 for the September 2026 quarter, compared with Rs 1.96 a year earlier. Consolidated total comprehensive income was Rs 2.83 crore, against Rs 6.21 crore, after other comprehensive loss of Rs 7.22 lakh in the latest quarter versus a Rs 1.87 lakh loss a year earlier.

On the balance sheet, consolidated equity was Rs 270.92 crore at September 30, 2026, up from Rs 268.91 crore at March 31, 2026. Total consolidated liabilities were Rs 64.08 crore, compared with Rs 63.32 crore at March-end, while total assets were Rs 335.00 crore versus Rs 332.23 crore.

Conclusion

Indef Manufacturing’s September-quarter revenue growth did not translate into higher consolidated earnings because other income moved from Rs 2.70 crore to a negative Rs 6.51 lakh and total expenses rose by Rs 2.99 crore. The resulting profit after tax of Rs 2.90 crore was lower both year on year and sequentially, compared with Rs 5.48 crore in the quarter ended June 30, 2026.

The next disclosed issue to watch is the unresolved first-half cash-flow movement: operating activities used Rs 7.75 crore and consolidated cash and cash equivalents declined to Rs 1.12 crore at September 30, 2026. The filing provides no management profit target or operating plan, so subsequent results will show whether inventory, other current assets and operating cash generation change from the reported first-half position.