Jost's Engineering first-half profit rises to Rs 5.72 crore

Jost's Engineering Company Limited reported unaudited consolidated profit after tax of Rs 5.72 crore for the half year ended September 30, 2026, up from Rs 1.38 crore a year earlier, despite segment revenue falling 12.2% to Rs 96.04 crore from Rs 109.35 crore. Higher Engineered Products revenue and lower interest costs accompanied the profit increase.

Why did Jost's Engineering profit rise despite lower revenue?

Jost's Engineering increased profit after tax by Rs 4.34 crore to Rs 5.72 crore in the half year ended September 30, 2026, from Rs 1.38 crore in the corresponding 2025 period. Profit before tax from continuing operations rose to Rs 8.35 crore from Rs 2.46 crore, while tax expense increased to Rs 2.63 crore from Rs 1.08 crore.

The profit increase came as consolidated segment revenue declined by Rs 13.31 crore to Rs 96.04 crore. Engineered Products added Rs 17.34 crore of revenue, but Material Handling revenue fell by Rs 29.96 crore and MHE Rentals revenue declined by Rs 0.69 crore. The board approved the unaudited consolidated results on November 5, 2026.

Which Jost's Engineering segments changed most in the first half?

Jost's Engineering's Engineered Products segment was its largest first-half business by revenue and profit before interest and tax, reporting revenue of Rs 67.56 crore and segment profit of Rs 8.94 crore. In the half year ended September 30, 2025, the segment recorded Rs 50.22 crore of revenue and Rs 5.92 crore of segment profit.

Material Handling moved in the opposite direction, with revenue falling to Rs 22.52 crore from Rs 52.48 crore and segment profit turning into a Rs 0.87 crore loss from a Rs 2.55 crore profit. MHE Rentals generated Rs 5.96 crore of revenue against Rs 6.65 crore a year earlier, while its segment profit increased to Rs 0.34 crore from Rs 0.19 crore.

The three segments produced combined profit before interest and tax of Rs 8.41 crore, slightly below Rs 8.66 crore in the previous first half. Engineered Products' Rs 3.02 crore increase in segment profit was therefore offset partly by the Rs 3.42 crore deterioration in Material Handling, while MHE Rentals contributed an additional Rs 0.15 crore.

What items affected Jost's Engineering earnings below segment profit?

Jost's Engineering reported interest expense of Rs 0.93 crore for the September 2026 half year, compared with Rs 2.95 crore a year earlier. Other unallocable expenditure declined to Rs 2.91 crore from Rs 3.38 crore, while unallocable income rose to Rs 3.78 crore from Rs 0.13 crore, taking profit before tax from continuing operations to Rs 8.35 crore.

Other comprehensive loss was Rs 0.08 crore in the 2026 half year, resulting in total comprehensive income of Rs 5.64 crore, compared with Rs 1.38 crore in the prior-year period. Profit attributable to owners was Rs 5.72 crore and non-controlling interests were nil in both half-year periods.

For the quarter ended September 30, 2026, Jost's Engineering reported profit after tax of Rs 3.31 crore, compared with Rs 0.81 crore in the September 2025 quarter and Rs 2.40 crore in the June 2026 quarter. Quarterly segment revenue was Rs 44.08 crore, below Rs 53.74 crore a year earlier and Rs 51.96 crore in the preceding quarter.

What changed in Jost's Engineering balance sheet and cash flow?

Jost's Engineering had total assets of Rs 230.52 crore at September 30, 2026, compared with Rs 213.26 crore at March 31, 2026. Current assets increased to Rs 206.79 crore from Rs 191.60 crore, including trade receivables of Rs 100.74 crore versus Rs 88.09 crore and current investments of Rs 77.75 crore versus Rs 73.69 crore.

Total equity was Rs 157.08 crore at September 30, 2026, compared with Rs 157.36 crore at March 31, while total liabilities rose to Rs 73.44 crore from Rs 55.90 crore. Current borrowings increased to Rs 10.57 crore from Rs 5.61 crore, whereas non-current borrowings declined to Rs 0.96 crore from Rs 2.26 crore.

Net cash generated from operating activities was Rs 6.62 crore in the first half, against net cash used in operating activities of Rs 17.47 crore a year earlier. The 2026 operating cash flow included a Rs 13.74 crore increase in trade receivables, a Rs 1 crore increase in inventories and a Rs 12.88 crore increase in trade payables.

How were Jost's Engineering subsidiary results reviewed?

Jost's Engineering consolidated MHE Rentals India Private Limited and Josts Engineering Inc in its September 2026 results. One subsidiary, whose interim information was reviewed by another independent auditor, had assets of Rs 15.29 crore, half-year revenue of Rs 5.97 crore and profit after tax of Rs 1.31 lakh.

The other subsidiary had assets of Rs 1.95 crore, half-year revenue of Rs 10.39 lakh and a loss after tax of Rs 20.33 lakh. Its financial information was certified by management rather than reviewed by its auditor, and the consolidated auditor said its review conclusion was not modified regarding its reliance on that information and the other auditor's report.

The consolidated financial statements were prepared under Indian Accounting Standard 34, Interim Financial Reporting. The independent auditor performed a review, which provides moderate assurance and is less extensive than an audit, and stated that nothing had come to its attention suggesting that the consolidated statement contained a material misstatement.

Conclusion

Jost's Engineering reported a substantial first-half increase in profit after tax to Rs 5.72 crore despite a Rs 13.31 crore fall in segment revenue. Engineered Products generated Rs 67.56 crore of revenue and Rs 8.94 crore of segment profit, while reduced interest expense and higher unallocable income also contributed to the improvement in reported earnings.

Investors will next watch whether Engineered Products sustains its first-half revenue contribution and whether Material Handling recovers from its Rs 29.96 crore year-on-year revenue decline. Jost's Engineering also said it continues to monitor final Central and State rules and government clarifications on the Labour Codes after a Rs 2.61 crore defined-benefit obligation provision was recognised as an exceptional item in the year ended March 31, 2026.