India Nippon Electricals revenue rises 27%, profit falls 6%

India Nippon Electricals Limited reported revenue from operations of Rs 347.48 crore for the quarter ended September 30, 2026, up 27.5% year on year, while profit for the period fell 6.0% to Rs 21.81 crore as total expenses rose faster than total income.

How did India Nippon Electricals’ September-quarter results change?

India Nippon Electricals increased September-quarter revenue but recorded lower year-on-year profit for the quarter ended September 30, 2026. Revenue from operations increased by Rs 74.92 crore from the corresponding 2025 quarter, while total income rose by Rs 68.89 crore to Rs 348.35 crore. Profit before tax fell by Rs 3.55 crore to Rs 28.53 crore, and profit for the period declined by Rs 1.39 crore.

India Nippon Electricals also reported lower profit than in the immediately preceding June 2026 quarter. Revenue rose from Rs 304.48 crore in the June quarter to Rs 347.48 crore in the September quarter, but profit for the period fell from Rs 27.03 crore to Rs 21.81 crore. Other income was Rs 87 lakh in September, against Rs 8.10 crore in June, while profit before tax declined from Rs 34.84 crore to Rs 28.53 crore.

Why did India Nippon Electricals’ profit fall despite higher revenue?

India Nippon Electricals’ total expenses increased 29.3% year on year, exceeding the 24.7% growth in total income for the quarter ended September 30, 2026. Cost of materials consumed increased by Rs 62.04 crore to Rs 248.47 crore from Rs 186.43 crore. Employee benefit expense rose by Rs 6.50 crore to Rs 36.76 crore, while other expenses increased by Rs 2.24 crore to Rs 14.99 crore.

India Nippon Electricals recorded depreciation and amortisation expense of Rs 5.43 crore, compared with Rs 4.27 crore a year earlier, and other operating expenses of Rs 12.06 crore, compared with Rs 10.35 crore. The change in inventories of finished goods and work in progress was negative Rs 7.55 crore, compared with negative Rs 4.70 crore in the September 2025 quarter. These movements accompanied the decline in profit before tax to Rs 28.53 crore.

India Nippon Electricals’ total tax expense declined to Rs 6.72 crore in the September 2026 quarter from Rs 8.88 crore a year earlier, partly offsetting the lower pre-tax result. Current tax was Rs 7.84 crore and deferred tax was a credit of Rs 1.12 crore, against current tax of Rs 7.68 crore and deferred tax expense of Rs 1.20 crore in the earlier quarter. Basic and diluted earnings per share, or EPS, were Rs 9.64, down from Rs 10.26, and the company said quarterly EPS is not annualised.

What do India Nippon Electricals’ half-year results show?

India Nippon Electricals delivered higher revenue and profit for the six months ended September 30, 2026, despite the September-quarter profit decline. Six-month revenue from operations rose 31.1% to Rs 651.96 crore from Rs 497.26 crore in the six months ended September 30, 2025. Profit for the period increased 5.0% to Rs 48.84 crore from Rs 46.50 crore, while profit before tax rose by Rs 75 lakh to Rs 63.37 crore.

India Nippon Electricals’ six-month total expenses rose faster than total income, at 31.8% and 28.0%, respectively. Total expenses reached Rs 597.56 crore from Rs 453.51 crore, while total income rose to Rs 660.93 crore from Rs 516.13 crore. Material consumption increased to Rs 459.36 crore from Rs 331.68 crore, and employee benefit expense reached Rs 70.88 crore from Rs 57.48 crore.

India Nippon Electricals’ total assets increased to Rs 1,158.42 crore at September 30, 2026, from Rs 1,067.31 crore at March 31, 2026. Inventories rose to Rs 114.05 crore from Rs 90.91 crore and trade receivables increased to Rs 230.81 crore from Rs 206.46 crore. Capital work-in-progress rose to Rs 17.07 crore from Rs 6.82 crore, while total equity increased to Rs 868.41 crore from Rs 821.33 crore.

What does India Nippon Electricals’ cash flow indicate?

India Nippon Electricals generated net cash from operating activities of Rs 38.31 crore in the six months ended September 30, 2026, compared with Rs 1.15 crore in the comparable 2025 period. Cash generated from operations was Rs 56.13 crore, against Rs 11.97 crore, before income taxes paid of Rs 17.82 crore. The movement included a Rs 46.91 crore increase in trade payables, compared with an Rs 8.52 crore increase a year earlier.

India Nippon Electricals used Rs 39.89 crore in investing activities during the 2026 half year, compared with Rs 8.32 crore in the prior-year period. Purchases of property, plant and equipment, including capital work-in-progress, were Rs 23.23 crore, compared with Rs 18.58 crore. Cash and cash equivalents consequently declined by Rs 2.23 crore from the March 31, 2026 opening balance of Rs 5.50 crore to Rs 3.27 crore at September 30, 2026.

What is the scope and review status of India Nippon Electricals’ results?

India Nippon Electricals reported one operating segment, electrical and electronic products for two-wheelers, three-wheelers and engines. The September 2026 results are standalone because its wholly owned subsidiary, PT Automotive Systems Indonesia Ltd., was dissolved with effect from June 25, 2025. From April 1, 2026, India Nippon Electricals had no subsidiary and was therefore not required to prepare consolidated financial results.

India Nippon Electricals’ audit committee reviewed and recommended the unaudited results on November 12, 2026, and the board approved them on the same date. Deloitte Haskins & Sells LLP conducted a limited review of the quarter and six-month statement. The auditor said nothing had come to its attention to indicate that the statement lacked required disclosures or contained a material misstatement.

Conclusion

India Nippon Electricals’ September 2026 quarter combined 27.5% revenue growth with a 6.0% reduction in profit for the period, as total expenses rose 29.3% against a 24.7% increase in total income. The six-month figures were more positive, with revenue increasing 31.1%, profit rising 5.0% and operating cash generation reaching Rs 38.31 crore.

The next disclosure will show whether the September-quarter gap between expense and income growth persists, particularly in material consumption of Rs 248.47 crore and employee benefit expense of Rs 36.76 crore. It will also clarify whether working-capital changes, including inventories of Rs 114.05 crore, receivables of Rs 230.81 crore and the Rs 46.91 crore increase in trade payables, continue to affect cash generation.