Innomet swings to Rs 4.75 crore first-half FY27 profit

Innomet Advanced Materials Limited reported consolidated profit after tax of Rs 4.75 crore for the half year ended September 30, 2026, compared with a Rs 44.41 lakh loss in the preceding half-year, as revenue from operations rose to Rs 55.67 crore from Rs 30.33 crore. The unaudited results were approved on October 31, 2026.

What drove Innomet's first-half FY27 profit reversal?

Innomet's reported profit reversal followed a Rs 25.34 crore increase in revenue from operations and a favourable movement in the inventory-change line. Revenue reached Rs 55.67 crore in the half year ended September 30, 2026, versus Rs 30.33 crore in the preceding half-year, while profit before tax moved to Rs 6.37 crore from a Rs 29.08 lakh loss.

Total income increased to Rs 55.84 crore from Rs 30.57 crore, although other income declined to Rs 16.67 lakh from Rs 23.92 lakh. Total expenses rose to Rs 49.47 crore from Rs 30.86 crore, leaving a reported pre-tax surplus of Rs 6.37 crore. Total tax expense was Rs 1.61 crore, compared with Rs 15.33 lakh in the preceding half-year.

Innomet reported basic earnings per share of Rs 3.64 for the September 2026 half year, compared with a basic loss per share of Rs 0.34 in the preceding half-year. Diluted earnings per share were Rs 3.61, against a diluted loss per share of Rs 0.34; the filing states that half-year earnings per share were not annualised.

How did Innomet's costs change during the half year?

Innomet's cost of materials consumed increased to Rs 50.70 crore from Rs 21.42 crore, while the change-in-inventory expense line moved to negative Rs 11.77 crore from positive Rs 1.13 crore. As presented in the consolidated profit and loss statement, the negative inventory-change figure reduced total reported expenses in the September 2026 half year.

Employee benefit expense was Rs 2.08 crore, little changed from Rs 2.06 crore in the preceding half-year. Finance costs rose to Rs 55.26 lakh from Rs 48.75 lakh, depreciation and amortisation increased to Rs 1.49 crore from Rs 1.39 crore, and other expenses rose to Rs 6.43 crore from Rs 4.37 crore.

Revenue increased by Rs 25.34 crore between the two half-year periods, while total expenses increased by Rs 18.61 crore. The inventory-change line shifted by Rs 12.91 crore, whereas the material-consumption charge increased by Rs 29.28 crore. These movements were recorded alongside the rise in consolidated profit after tax to Rs 4.75 crore.

What changed in Innomet's balance sheet by September 2026?

Innomet's consolidated total assets increased to Rs 86.01 crore at September 30, 2026 from Rs 61.92 crore at March 31, 2026. Current assets rose to Rs 56.74 crore from Rs 33.46 crore, while non-current assets increased to Rs 29.27 crore from Rs 28.46 crore.

Inventories rose to Rs 33.51 crore from Rs 13.65 crore, an increase of Rs 19.86 crore over six months. Trade receivables declined to Rs 9.46 crore from Rs 11.00 crore, but other current assets increased to Rs 12.61 crore from Rs 5.93 crore. Cash and cash equivalents fell to Rs 1.04 crore from Rs 2.76 crore.

Tangible property, plant and equipment increased to Rs 23.45 crore from Rs 19.64 crore. The September 2026 balance sheet also included goodwill of Rs 1.79 crore, while capital work-in-progress fell to Rs 43.48 lakh from Rs 52.98 lakh and non-current loans and advances declined to Rs 75 lakh from Rs 5.71 crore.

How did working capital affect Innomet's cash flow?

Innomet's standalone cash-flow statement showed net cash used in operating activities of Rs 6.99 crore for the half year ended September 30, 2026, despite operating profit before working-capital changes of Rs 8.19 crore. The largest stated cash use was the Rs 19.86 crore increase in inventories.

Other current assets used Rs 6.68 crore of cash, while the reported decrease in trade receivables generated Rs 1.54 crore. An increase in trade payables provided Rs 6.05 crore and short-term borrowings increased by Rs 4.20 crore. The cash-flow statement also recorded a Rs 22.36 lakh increase in other current liabilities.

Investing activities used Rs 2.30 crore, including Rs 6.96 crore paid for fixed assets, capital work-in-progress and capital advances. A Rs 4.96 crore movement in long-term loans and advances partly offset that outflow. Financing activities generated Rs 7.57 crore, principally from Rs 7.53 crore of share-issue proceeds, while interest paid was Rs 55.26 lakh.

How did Innomet use its preferential issue proceeds?

Innomet received Rs 7.53 crore from preferential allotments on August 14 and August 17, 2026, and the auditor's October 31, 2026 certificate said the full amount was utilised for working-capital requirements. The receipts consisted of Rs 4.85 crore from 4,50,000 equity shares and Rs 2.69 crore against 5,00,000 share warrants.

Innomet's deviation-or-variation statement for the half year ended September 30, 2026 reported no deviation in the use of the funds. The original working-capital allocation was Rs 12.45 crore. The filing states that the remaining potential amount assumes the 5,00,000 warrants issued at Rs 131 each are exercised within 18 months.

Equity share capital increased to Rs 13.39 crore at September 30 from Rs 12.94 crore at March 31. Reserves and surplus rose to Rs 39.94 crore from Rs 29.96 crore, and the balance sheet recorded Rs 1.64 crore as money received against share warrants. Total equity therefore increased to Rs 54.97 crore from Rs 42.90 crore.

Conclusion

Innomet's September 2026 half-year filing shows higher revenue and a return to consolidated profitability, but also a substantial rise in inventories and a standalone operating cash outflow. The company reported Rs 4.75 crore of consolidated profit after tax, while its inventory balance rose by Rs 19.86 crore and standalone operating activities used Rs 6.99 crore of cash.

The disclosed next funding event is the possible exercise of 5,00,000 warrants at Rs 131 each within 18 months, which the preferential-issue statement assumes for the remaining allocation. Subsequent filings will show whether the September 2026 inventory balance of Rs 33.51 crore, short-term borrowings of Rs 9.89 crore and cash balance of Rs 1.04 crore change after the Rs 7.53 crore working-capital deployment.