ISGEC September-quarter profit rises to Rs 66.19 crore

ISGEC reported consolidated profit after tax of Rs 66.19 crore for the quarter ended September 30, 2026, up from Rs 12.55 crore a year earlier, while a subsidiary’s revised depreciation estimates increased consolidated profit before tax by Rs 28.41 crore. The Rs 83.69 crore profit figure applies to the six months ended September 30, 2026.

What did ISGEC report for the September 2026 quarter?

ISGEC reported revenue from operations of Rs 1,850.39 crore and profit before tax of Rs 102.32 crore for the September 2026 quarter, compared with Rs 1,661.76 crore and Rs 50.55 crore, respectively, in the restated September 2025 quarter. Profit after tax rose to Rs 66.19 crore from Rs 12.55 crore, while basic and diluted earnings per share were Rs 7.67 against Rs 0.03 a year earlier.

Revenue from operations fell from Rs 1,980 crore in the preceding June 2026 quarter, but profit before tax increased from Rs 52.90 crore and profit after tax increased from Rs 17.50 crore. Other income was Rs 9.25 crore in the September quarter, below Rs 13.46 crore in June 2026 and Rs 34.49 crore in the September 2025 quarter.

For the six months ended September 30, 2026, ISGEC recorded revenue from operations of Rs 3,830.39 crore, compared with Rs 3,018.09 crore in the restated prior-year period. Six-month profit before tax was Rs 155.22 crore versus Rs 95.65 crore, while profit after tax was Rs 83.69 crore versus Rs 25.86 crore. The prior-year comparative period was restated following the reclassification of Bioeq Energy Holdings One as a continuing operation.

How did ISGEC’s expenses and tax affect quarterly profit?

ISGEC’s total expenses were Rs 1,757.38 crore in the September 2026 quarter, compared with Rs 1,645.72 crore a year earlier, while total income rose to Rs 1,859.64 crore from Rs 1,696.25 crore. Depreciation and amortisation expense declined to Rs 36.65 crore from Rs 70.37 crore, and finance costs fell to Rs 17.72 crore from Rs 20.31 crore.

Direct and employee-related costs increased alongside revenue. Materials consumed rose to Rs 491.89 crore from Rs 406.46 crore, project costs including bought-outs increased to Rs 490.01 crore from Rs 427.50 crore, and employee benefits expense rose to Rs 203.55 crore from Rs 171.28 crore. Erection and commissioning expenses were Rs 183.87 crore, compared with Rs 164.68 crore in the prior-year quarter.

Current tax expense was Rs 43.07 crore, compared with Rs 36.87 crore a year earlier. ISGEC recorded a deferred-tax credit of Rs 6.94 crore in the September 2026 quarter, compared with deferred-tax expense of Rs 1.13 crore in the corresponding quarter. Total comprehensive income was Rs 69.68 crore, including Rs 9.32 crore attributable to non-controlling interests.

Which ISGEC segments drove September-quarter performance?

ISGEC’s Industrial Projects segment generated revenue of Rs 1,020.72 crore in the September 2026 quarter, up from Rs 843.67 crore a year earlier, and its segment result increased to Rs 57.23 crore from Rs 37.23 crore. Manufacturing of Machinery and Equipment recorded revenue of Rs 736.39 crore, compared with Rs 666.72 crore, while its segment result was Rs 99.43 crore against Rs 98.84 crore.

The Sugar segment’s revenue declined to Rs 116.84 crore from Rs 169.25 crore, but its segment result changed to a profit of Rs 11.82 crore from a loss of Rs 5.22 crore. Ethanol revenue fell to Rs 27.24 crore from Rs 69.86 crore and its segment loss was Rs 4.31 crore, compared with a loss of Rs 0.31 crore in the restated prior-year quarter.

The Philippines ethanol plant reported revenue of Rs 56.70 crore, compared with negative Rs 29.33 crore in the restated September 2025 quarter, while its segment loss narrowed to Rs 60.16 crore from Rs 75.71 crore. Total segment results before interest and tax were Rs 139.05 crore, up from Rs 87.57 crore; after interest expense of Rs 17.44 crore and inter-segment interest of Rs 19.29 crore, ISGEC reported profit before tax of Rs 102.32 crore.

What was the subsidiary depreciation change?

ISGEC said a subsidiary reassessed the useful lives of relevant property, plant and equipment and its depreciation method after considering manufacturing facilities’ operational status, expected utilisation of assets and the expected pattern of future economic benefits. Effective July 1, 2026, the subsidiary revised estimated useful lives and changed from the Written Down Value method to the Straight Line Method.

ISGEC accounted for the revision prospectively as a change in accounting estimate under Indian Accounting Standard 16, read with Indian Accounting Standard 8. The company said the revision lowered depreciation expense and consequently increased consolidated profit before tax by Rs 28.41 crore for both the September 2026 quarter and the six months ended September 30, 2026.

The disclosed revision accounts for much of the year-on-year decline of Rs 33.72 crore in quarterly depreciation and amortisation expense, from Rs 70.37 crore to Rs 36.65 crore. ISGEC did not separately quantify the effect on depreciation of asset additions, disposals, operational changes or other factors during the period.

What do ISGEC’s balance sheet and cash flows show?

ISGEC’s total assets were Rs 8,043.43 crore at September 30, 2026, compared with Rs 8,077.14 crore at March 31, 2026. Trade receivables declined to Rs 2,357.10 crore from Rs 2,751.30 crore, inventories declined to Rs 1,500.30 crore from Rs 1,652.65 crore, and current investments rose to Rs 326.19 crore from Rs 44.70 crore.

Total equity increased to Rs 2,921.59 crore from Rs 2,887.67 crore, including Rs 2,768.41 crore attributable to owners of the parent. Current borrowings declined to Rs 218.42 crore from Rs 400.65 crore, while non-current borrowings were Rs 514.07 crore compared with Rs 517.42 crore. Total liabilities declined to Rs 5,121.84 crore from Rs 5,189.47 crore.

Net cash flow from operating activities for the six months was Rs 460.30 crore, compared with Rs 449.76 crore in the prior-year period. ISGEC spent Rs 127.75 crore on property, plant and equipment including capital work in progress, compared with Rs 72.72 crore a year earlier, while net cash used in investing activities was Rs 438.50 crore. Cash and cash equivalents closed at Rs 136.60 crore, down from Rs 324.22 crore at the start of the six-month period.

Conclusion

ISGEC’s September-quarter profit after tax increased to Rs 66.19 crore as revenue grew year on year, Industrial Projects expanded, Sugar returned to a segment profit and the Philippines ethanol plant reduced its segment loss. The Rs 28.41 crore accounting-estimate revision at a subsidiary was also a direct contributor to the Rs 102.32 crore reported quarterly profit before tax.

The next reporting period will show the effect of the July 1, 2026 depreciation-method revision across a full quarter. Readers can also watch the Philippines ethanol plant after its Rs 60.16 crore quarterly segment loss, and whether the higher six-month capital expenditure of Rs 127.75 crore affects cash and operating performance.