Indo Amines first-half sales rise 35% as profit falls 16%

Indo Amines Limited reported consolidated revenue from operations of Rs 759.70 crore for the half year ended September 30, 2026, up 35% from Rs 564.63 crore a year earlier, while profit after tax fell 16% to Rs 39.35 crore and operating cash flow was negative Rs 18.67 crore.

How did Indo Amines' first-half revenue and profit change?

Indo Amines increased revenue from operations by Rs 195.07 crore year on year in the half year ended September 30, 2026. Consolidated revenue reached Rs 759.70 crore, compared with Rs 564.63 crore in the half year ended September 2025, while total income, including other income, rose to Rs 765.05 crore from Rs 585.06 crore.

Profit did not follow the increase in sales. Profit before tax was Rs 53.43 crore in the September 2026 half year, down from Rs 61.14 crore a year earlier, and consolidated profit after tax declined to Rs 39.35 crore from Rs 46.95 crore. Total comprehensive income decreased to Rs 39.34 crore from Rs 48.77 crore.

Earnings per equity share moved lower with profit. Basic earnings per share, which the filing says are not annualised, were Rs 5.42 for the September 2026 half year versus Rs 6.44 in the corresponding 2025 period, while diluted earnings per share were Rs 5.38 versus Rs 6.44. Paid-up equity share capital was unchanged at Rs 36.29 crore in both half-year columns.

What happened in Indo Amines' September 2026 quarter?

Indo Amines reported revenue from operations of Rs 385.06 crore in the quarter ended September 2026, compared with Rs 374.64 crore in the preceding June 2026 quarter and Rs 277.05 crore in the quarter ended September 2025. The latest quarter therefore accounted for more than half of first-half revenue of Rs 759.70 crore.

Quarterly profit after tax was Rs 8.60 crore in September 2026, compared with Rs 30.76 crore in June 2026 and Rs 18.11 crore in September 2025. Profit before tax was Rs 11.75 crore in the September quarter, down from Rs 41.68 crore in the June quarter. The filing does not provide management's explanation for this sequential profit movement.

Indo Amines reported one business segment, manufacturing of chemicals, with reporting based on different geographies. The filing consequently does not provide separate revenue, profit or margin figures for individual chemical products. Other income was Rs 5.35 crore in the first half, down from Rs 20.43 crore in the comparable period.

Why was Indo Amines' operating cash flow negative?

Indo Amines reported net cash flow from operating activities of negative Rs 18.67 crore for the period ended September 30, 2026. Cash flow before tax was negative Rs 8.31 crore, despite operating profit before working-capital changes of Rs 78.53 crore. Current-year taxes paid were Rs 4.60 crore and previous-year taxes paid were Rs 16.26 crore.

Working-capital movements used cash during the period. Inventory increased by Rs 88.71 crore, trade receivables increased by Rs 65.11 crore and other current assets increased by Rs 50.20 crore. Those outflows were partly offset by an Rs 81.49 crore increase in trade payables and an Rs 42.33 crore increase in other current liabilities.

The cash-flow statement compares the September 2026 period with the year ended March 31, 2026, rather than with the half year ended September 2025. Net cash flow from operating activities was Rs 78.74 crore for the March 2026 full year. These are not like-for-like periods, but the September-period outflow coincided with the reported build-up in inventory and receivables.

How did Indo Amines' balance sheet change by September 2026?

Indo Amines' consolidated total assets rose to Rs 1,108.88 crore at September 30, 2026 from Rs 897.46 crore at March 31, 2026. Inventory increased to Rs 266.98 crore from Rs 178.26 crore, while trade receivables rose to Rs 346.66 crore from Rs 281.54 crore. The balance-sheet increases align with the working-capital outflows in the cash-flow statement.

Cash and cash equivalents were Rs 5.17 crore at September 30, 2026, compared with Rs 6.52 crore at March 31, 2026. Short-term borrowings increased to Rs 282.58 crore from Rs 226.11 crore, while trade payables to creditors other than micro and small enterprises rose to Rs 205.74 crore from Rs 125.42 crore.

Property, plant and equipment stood at Rs 302.69 crore at September 30, 2026, down from Rs 312.02 crore at March 31, 2026. Capital work in progress increased to Rs 42.39 crore from Rs 31.30 crore. Purchases of fixed assets, including capital work in progress, were Rs 14.39 crore during the period, against Rs 78.43 crore for the year ended March 2026.

What did Indo Amines disclose about its review and operations?

Indo Amines' board reviewed and took the unaudited consolidated results on record on November 6, 2026. The statutory auditors conducted a limited review and expressed an unmodified conclusion. The auditors stated that a limited review is narrower in scope than an audit and does not provide audit assurance.

The consolidation includes Indo Specialty Chemicals Private Limited and four overseas subsidiaries. The four overseas subsidiaries had combined assets of Rs 105.65 crore, revenue of Rs 119.63 crore and negative net cash flows of Rs 46.52 lakh for the period ended September 30, 2026. Their financial information was unaudited and furnished by management, and the auditors described those subsidiaries as not material to the group.

Indo Amines said a July 21, 2026 closure-direction letter from the Gujarat Pollution Control Board was revoked, allowing operations to resume or continue subject to applicable conditions and directions. It stated that the matter had no material financial impact in the September 2026 quarter. Separately, the company recognised Rs 74.05 lakh of employee compensation expense in that quarter for an employee stock option plan grant.

Conclusion

Indo Amines added Rs 195.07 crore of year-on-year first-half revenue, but profit after tax fell by Rs 7.60 crore and operating cash flow turned to an outflow of Rs 18.67 crore in the half year ended September 30, 2026. The reported increase of Rs 153.82 crore across inventory and receivables was a significant component of the working-capital cash requirement.

The next disclosures can show whether inventory of Rs 266.98 crore and receivables of Rs 346.66 crore at September 30, 2026 convert into cash. Indo Amines also disclosed unresolved insurance receivables relating to Rs 260.30 lakh of inventory destroyed and Rs 336.46 lakh of property, plant and equipment damage from the June 12, 2024 fire, alongside continuing compliance conditions under the revoked Gujarat Pollution Control Board directions.