India Gelatine Q2 profit rises 12% as expenses decline

India Gelatine & Chemicals Limited reported profit of Rs 7.24 crore for the quarter ended September 30, 2026, up 12.4% from Rs 6.44 crore a year earlier, as total expenses fell Rs 2.71 crore to Rs 36.83 crore and more than offset a Rs 2.26 crore decline in total income. The unaudited results were approved on November 4, 2026.

How did India Gelatine’s September-quarter profit change?

India Gelatine’s profit for the period increased by Rs 0.80 crore year on year to Rs 7.24 crore in the quarter ended September 30, 2026, from Rs 6.44 crore in the corresponding 2025 quarter. Profit before tax rose to Rs 9.65 crore from Rs 9.20 crore. Basic and diluted earnings per share, or EPS, increased to Rs 10.21 from Rs 9.08, with the company stating that quarterly EPS is not annualised.

The result was lower sequentially. Profit for the period declined from Rs 8.08 crore in the quarter ended June 30, 2026, while profit before tax fell from Rs 10.65 crore. Total income also declined sequentially to Rs 46.48 crore from Rs 48.11 crore, whereas total expenses decreased to Rs 36.83 crore from Rs 37.46 crore.

Revenue from operations declined to Rs 45.20 crore in the September 2026 quarter from Rs 46.90 crore a year earlier. Other income fell to Rs 1.28 crore from Rs 1.84 crore, taking total income to Rs 46.48 crore from Rs 48.74 crore. The Rs 2.71 crore reduction in expenses was greater than the Rs 2.26 crore fall in total income, lifting profit before tax by Rs 0.45 crore.

Why did India Gelatine’s profit rise despite lower revenue?

India Gelatine’s total expenses fell 6.8% year on year to Rs 36.83 crore in the September 2026 quarter from Rs 39.54 crore. The largest movement was in changes in inventories of finished goods, work-in-progress and stock-in-trade, which was negative Rs 0.48 crore in the latest quarter against an expense of Rs 4.54 crore in the September 2025 quarter.

Several cost lines increased despite the lower total expense figure. Material costs rose to Rs 17.68 crore from Rs 16.57 crore, employee-benefit expense increased to Rs 1.84 crore from Rs 1.57 crore, and other expenses rose to Rs 9.89 crore from Rs 9.00 crore. Power and fuel was Rs 6.63 crore, compared with Rs 6.60 crore a year earlier, while finance costs were Rs 0.11 crore versus Rs 0.11 crore.

Tax expense declined to Rs 2.41 crore from Rs 2.76 crore in the year-earlier quarter. Current tax was Rs 2.19 crore, compared with Rs 2.62 crore, while deferred tax was Rs 0.22 crore against Rs 0.14 crore. The lower tax expense and higher pre-tax profit resulted in the Rs 0.80 crore increase in quarterly profit.

India Gelatine reported one operating segment, Chemical Business, under Indian Accounting Standard 108, or Ind AS 108, on operating segments. The filing therefore provides no sales, cost or profit split by product category or division for the quarter ended September 30, 2026. The reported income and expense movements relate to the company’s sole reportable segment.

What were India Gelatine’s first-half results?

India Gelatine’s profit for the half year ended September 30, 2026 rose to Rs 15.32 crore from Rs 13.52 crore in the corresponding 2025 period. Profit before tax increased to Rs 20.29 crore from Rs 18.04 crore, while EPS rose to Rs 21.61 from Rs 19.07. Total comprehensive income was Rs 15.49 crore, compared with Rs 13.81 crore a year earlier.

The half-year revenue trend differed from the September-quarter comparison. Revenue from operations increased to Rs 90.88 crore from Rs 86.00 crore, and total income rose to Rs 94.59 crore from Rs 90.04 crore. Expenses also increased to Rs 74.30 crore from Rs 71.99 crore, but the Rs 4.56 crore rise in total income exceeded the Rs 2.31 crore increase in expenses.

Within first-half expenses, material costs fell to Rs 34.14 crore from Rs 35.15 crore and the inventory-change line turned negative at Rs 0.31 crore from a positive Rs 0.45 crore. Power and fuel increased to Rs 15.06 crore from Rs 13.23 crore, employee-benefit expense rose to Rs 3.89 crore from Rs 3.24 crore, and other expenses increased to Rs 19.03 crore from Rs 17.39 crore.

How did India Gelatine’s cash flow and balance sheet move?

India Gelatine generated net cash from operating activities of Rs 11.02 crore in the half year ended September 30, 2026, compared with Rs 20.09 crore in the prior-year period. Cash generated from operating activities before direct taxes was Rs 15.38 crore, down from Rs 24.14 crore, and direct taxes paid, net of refunds, were Rs 4.37 crore compared with Rs 4.05 crore.

Trade and other receivables used Rs 6.32 crore of cash in the latest half year, compared with a positive Rs 1.53 crore movement in the comparable period. Inventories released Rs 1.07 crore of cash and trade and other payables added Rs 0.88 crore. Net cash used in investing activities was Rs 3.21 crore, including Rs 9.33 crore spent on property, plant, equipment and intangible assets.

Total assets stood at Rs 229.23 crore at September 30, 2026, up from Rs 217.16 crore at March 31, 2026. Capital work-in-progress increased to Rs 28.59 crore from Rs 20.05 crore, while trade receivables rose to Rs 14.84 crore from Rs 9.86 crore. Cash and cash equivalents increased to Rs 3.05 crore from Rs 1.02 crore.

Total equity rose to Rs 204.80 crore at September 30, 2026 from Rs 193.56 crore at March 31, 2026. Non-current borrowings were nil, compared with Rs 1.37 crore at the March year-end, while current borrowings were Rs 2.73 crore against Rs 2.73 crore. Current liabilities increased to Rs 15.32 crore from Rs 13.47 crore, including Rs 6.52 crore of trade payables to creditors other than micro and small enterprises.

Conclusion

India Gelatine’s September-quarter profit increase resulted from a Rs 2.71 crore reduction in total expenses that exceeded the Rs 2.26 crore decline in total income. The first-half outcome showed a different pattern, with revenue rising Rs 4.88 crore and profit increasing Rs 1.80 crore to Rs 15.32 crore for the half year ended September 30, 2026.

The next reported results will show whether the September-quarter inventory movement and the first-half revenue increase continue. The disclosed September 30 balance sheet also leaves trade receivables of Rs 14.84 crore and capital work-in-progress of Rs 28.59 crore as items to track alongside operating cash flow, which was Rs 11.02 crore in the first half.