Indian Wood Products' consolidated H1 profit rises 6% on JV

The Indian Wood Products Company Limited reported consolidated profit after tax of Rs 3.6538 crore for the half year ended September 30, 2026, up 6.4% year on year, as a Rs 2.1577 crore share of profit from Agro & Spice Trading Pte Ltd outweighed a 13.9% decline in standalone profit to Rs 1.4961 crore.

Why did Indian Wood Products' consolidated profit rise while standalone profit fell?

Indian Wood Products' consolidated profit rose because its share of profit from Agro & Spice Trading Pte Ltd increased to Rs 2.1577 crore in H1 2026 from Rs 1.6948 crore in H1 2025. The joint venture contribution increased by Rs 46.29 lakh and accounted for more than half of the group's consolidated profit after tax of Rs 3.6538 crore.

Standalone profit after tax fell to Rs 1.4961 crore from Rs 1.7386 crore, although standalone profit before tax was nearly unchanged at Rs 2.2575 crore versus Rs 2.2607 crore. Total tax expense rose to Rs 76.14 lakh from Rs 52.21 lakh, including deferred tax of Rs 19.33 lakh against a deferred-tax credit of Rs 1.32 lakh in H1 2025.

Indian Wood Products prepares consolidated accounts under the equity method and includes its share of profit from the Singapore-based joint venture and its subsidiaries. The auditor said the Rs 2.1577 crore H1 profit share was based on interim financial information that had not been reviewed or audited by the venture's auditor, while leaving its conclusion unmodified.

How did Indian Wood Products' H1 sales and costs change?

Indian Wood Products' standalone gross sales increased 0.7% to Rs 107.4795 crore in H1 2026 from Rs 106.7126 crore in H1 2025. Other income declined to Rs 8.58 lakh from Rs 10.90 lakh, taking total income to Rs 107.5653 crore compared with Rs 106.8216 crore a year earlier.

Cost composition changed materially despite the limited movement in sales. Materials consumed declined by Rs 17.3304 crore to Rs 46.5530 crore, while purchases of stock-in-trade rose to Rs 17.4693 crore from Rs 1.1030 crore and the increase in stock-in-trade expense was Rs 2.8212 crore against Rs 41.26 lakh.

Employee-benefit expense increased to Rs 12.6815 crore from Rs 11.8492 crore, while other expenses decreased to Rs 21.3064 crore from Rs 21.5712 crore. Finance cost declined to Rs 2.5786 crore from Rs 3.6179 crore and depreciation fell to Rs 1.8978 crore from Rs 2.1236 crore, but total expenditure still rose to Rs 105.3078 crore from Rs 104.5609 crore.

Indian Wood Products reported a single operating segment, Katha, rather than separate product or geographic revenue figures. The consolidated and standalone statements carry the same income and expenditure lines through operating profit because the joint venture is included through its share of profit rather than through group sales or expenses.

What happened in Indian Wood Products' September quarter?

Indian Wood Products' standalone profit after tax was Rs 38.81 lakh in the quarter ended September 30, 2026, down 59.3% from Rs 95.47 lakh in the September 2025 quarter. Gross sales were Rs 42.2873 crore, compared with Rs 55.2810 crore a year earlier and Rs 65.1922 crore in the preceding June 2026 quarter.

Standalone profit before tax was Rs 61.80 lakh, down from Rs 1.2220 crore in the September 2025 quarter and Rs 1.6395 crore in the June 2026 quarter. Materials consumed declined to Rs 16.2562 crore from Rs 32.4989 crore year on year, while purchases of stock-in-trade increased to Rs 4.6775 crore from Rs 43.42 lakh.

Consolidated profit after tax for the September quarter was Rs 1.1462 crore, down from Rs 2.2841 crore a year earlier. The joint venture's profit share was Rs 75.81 lakh, below both Rs 1.3294 crore in the September 2025 quarter and Rs 1.3996 crore in the June 2026 quarter.

Consolidated earnings per share, or EPS, were Rs 0.18 in the September quarter, compared with Rs 0.36 a year earlier. H1 consolidated EPS increased to Rs 0.57 from Rs 0.54, while standalone H1 EPS decreased to Rs 0.23 from Rs 0.27; Indian Wood Products states that EPS is not annualised.

What changed in Indian Wood Products' balance sheet and cash flow?

Indian Wood Products' consolidated total assets were Rs 527.0403 crore at September 30, 2026, compared with Rs 528.2369 crore at March 31, 2026. Cash and cash equivalents increased to Rs 8.1993 crore from Rs 82.92 lakh, while trade receivables fell to Rs 36.7922 crore from Rs 46.5945 crore and inventories declined to Rs 48.1029 crore from Rs 49.4469 crore.

Consolidated equity increased to Rs 365.5181 crore from Rs 363.2952 crore over the six months. Non-current borrowings increased to Rs 15.1684 crore from Rs 2.0120 crore, while current borrowings decreased to Rs 45.6221 crore from Rs 63.3475 crore, changing the stated maturity mix of borrowings.

Net cash from consolidated operating activities was Rs 20.6091 crore in H1 2026, compared with Rs 11.0315 crore in H1 2025. Investing activities used Rs 3.0975 crore, including Rs 2.1577 crore invested in shares, while financing activities used Rs 10.1980 crore and cash and cash equivalents increased by Rs 7.3136 crore.

The standalone cash-flow statement reported operating cash inflow of Rs 18.4514 crore, compared with Rs 9.3367 crore in H1 2025. Indian Wood Products recorded borrowing proceeds of Rs 13.1955 crore, repayments of Rs 18.7603 crore and dividend payments of Rs 1.3364 crore during the six-month period.

Conclusion

Indian Wood Products' H1 results show two different earnings trends: standalone profit after tax declined 13.9% to Rs 1.4961 crore, while consolidated profit increased 6.4% to Rs 3.6538 crore. The difference came from the Rs 2.1577 crore contribution from Agro & Spice Trading Pte Ltd, while gross sales were broadly stable at Rs 107.4795 crore.

The disclosed unresolved matter is the basis of the joint venture result, whose H1 interim financial information was not reviewed or audited by its own auditor. Readers can watch whether the venture's contribution recovers from Rs 75.81 lakh in the September quarter, following Rs 1.3996 crore in the June quarter, and continues to affect the gap between standalone and consolidated earnings.