Karamtara Engineering revenue rises 62%, profit gains 37%

Karamtara Engineering Limited reported consolidated revenue from operations of Rs 1,646.7361 crore for the quarter ended September 30, 2026, 62% higher than a year earlier, while profit after tax rose 37% to Rs 94.611 crore. The unaudited results were approved by its board on November 5, 2026 and received an unmodified limited-review conclusion.

How did Karamtara Engineering perform in the September 2026 quarter?

Karamtara Engineering increased total income to Rs 1,647.3857 crore in the quarter ended September 30, 2026, from Rs 1,017.6976 crore in the quarter ended September 30, 2025. Revenue from operations supplied Rs 1,646.7361 crore of latest-quarter income, while other income was Rs 64.96 lakh, compared with Rs 1.1734 crore a year earlier.

Profit before tax was Rs 128.6013 crore, up from Rs 93.1484 crore in the September 2025 quarter, and the statement reported no exceptional or extraordinary items in either period. Current tax was Rs 26.1956 crore and deferred tax was Rs 7.7947 crore in the latest quarter, resulting in profit after tax of Rs 94.611 crore, against Rs 69.0084 crore a year earlier.

Karamtara Engineering reported basic and diluted earnings per equity share of Rs 3.17 for the September 2026 quarter, compared with Rs 2.36 in the September 2025 quarter. Total comprehensive income reached Rs 97.301 crore, including a Rs 3.1206 crore exchange difference on translation of foreign operations, compared with total comprehensive income of Rs 69.4817 crore in the prior-year quarter.

What changed from the June 2026 quarter?

Karamtara Engineering's revenue from operations rose 4% sequentially from Rs 1,580.9295 crore in the quarter ended June 30, 2026 to Rs 1,646.7361 crore in the September quarter. Profit after tax increased from Rs 87.3743 crore to Rs 94.611 crore, while profit before tax rose from Rs 116.7546 crore to Rs 128.6013 crore.

Total expenses increased to Rs 1,518.9161 crore from Rs 1,468.014 crore in the June 2026 quarter. Cost of materials consumed was broadly unchanged at Rs 770.4503 crore versus Rs 773.2611 crore, but other expenses rose to Rs 553.7239 crore from Rs 497.7579 crore and finance costs increased to Rs 47.9378 crore from Rs 41.2518 crore.

Employee-benefit expense declined slightly to Rs 68.1788 crore from Rs 69.184 crore, while depreciation and amortisation rose to Rs 20.4492 crore from Rs 19.5834 crore. Changes in inventories of finished goods and work in progress were Rs 58.1761 crore in the September quarter, compared with Rs 66.9758 crore in the preceding quarter.

Other expenses included a foreign-exchange gain of Rs 9.6198 crore for the quarter ended September 30, 2026, compared with a Rs 2.5403 crore gain in the quarter ended September 30, 2025. Karamtara Engineering's share of profit from its associate, Clean Max AME Private Limited, was Rs 13.17 lakh, versus Rs 5.94 lakh in the June 2026 quarter.

Which markets drove Karamtara Engineering's revenue growth?

Karamtara Engineering identifies manufacturing structures for renewable-energy projects, including solar and wind projects and transmission towers for power evacuation, as its sole primary reportable segment. Within revenue from external customers, the United States accounted for Rs 1,082.6855 crore in the September 2026 quarter, India contributed Rs 442.3638 crore and the rest of the world contributed Rs 121.6868 crore.

The United States produced the largest year-on-year increase, with revenue more than doubling from Rs 475.8736 crore in the September 2025 quarter to Rs 1,082.6855 crore. India revenue declined from Rs 458.5548 crore to Rs 442.3638 crore, while rest-of-world revenue increased from Rs 82.0958 crore to Rs 121.6868 crore.

For the half year ended September 30, 2026, United States revenue was Rs 2,059.3629 crore, compared with Rs 853.3369 crore in the prior-year half. India revenue was Rs 973.3145 crore, above Rs 894.4462 crore, while rest-of-world revenue was Rs 194.9882 crore against Rs 186.3556 crore in the half year ended September 30, 2025.

The quarterly external-customer revenue across the three geographies totals Rs 1,646.7361 crore, matching reported revenue from operations. This geographic disclosure is entity-wide rather than a separate operating-segment profit breakdown, because the filing identifies only one primary reportable segment under Indian Accounting Standard 108, Operating Segments.

How did cash flow and the balance sheet change?

Karamtara Engineering generated net cash flow from operating activities of Rs 113.9883 crore in the half year ended September 30, 2026, down from Rs 292.6844 crore in the comparable prior-year half. The cash-flow statement records a Rs 620.4884 crore increase in trade receivables during the latest half, compared with a Rs 15.3143 crore increase in the previous comparable period.

Investing activities used Rs 523.5815 crore in the latest half year, including Rs 459.992 crore spent on property, plant and equipment, capital work in progress and intangible assets. Financing activities generated Rs 614.1698 crore, led by Rs 750 crore of proceeds from fresh equity shares, and cash and cash equivalents closed at Rs 279.4255 crore on September 30, 2026, versus Rs 74.8489 crore on March 31, 2026.

Total assets rose to Rs 5,419.1876 crore on September 30, 2026 from Rs 4,142.2357 crore at March 31, 2026. Non-current borrowings declined to Rs 546.9332 crore from Rs 566.6492 crore, and current borrowings declined to Rs 457.1707 crore from Rs 463.4789 crore over the same period.

Karamtara Engineering listed its equity shares on the National Stock Exchange of India Limited and BSE Limited on September 17, 2026 following an initial public offering at Rs 254 per share. The offer included a fresh issue of 2,65,74,803 equity shares and an offer for sale of 78,74,014 shares, each with a face value of Rs 10.

What happened to Karamtara Engineering's IPO proceeds?

Karamtara Engineering had utilised Rs 418.1137 crore of Rs 675 crore planned fresh-issue proceeds by September 30, 2026, leaving Rs 256.8863 crore pending utilisation. The planned uses were prepayment, repayment or payment of borrowings and acceptances, general corporate purposes and fresh-issue-related expenses.

Of the Rs 600 crore planned for lender obligations, Karamtara Engineering had used Rs 396.7586 crore by September 30, 2026, leaving Rs 203.2414 crore. It had also used Rs 21.3551 crore of a Rs 28.3912 crore general-corporate-purpose allocation, while Rs 46.6088 crore of fresh-issue-related expenses remained to be adjusted against securities premium.

The filing states that unutilised proceeds were parked in a Rs 200 crore fixed deposit, a Rs 10.2775 crore IPO monitoring account and a Rs 46.6088 crore IPO escrow account. Cash and cash equivalents included Rs 10.2775 crore in the monitoring account that was unavailable for Karamtara Engineering's general use because of restrictions on utilisation.

Conclusion

Karamtara Engineering's September-quarter results combined a 62% year-on-year increase in revenue with a 37% rise in profit after tax, led by the increase in United States revenue to Rs 1,082.6855 crore. Total expenses increased 64% year on year and rose sequentially, including higher finance costs of Rs 47.9378 crore and other expenses of Rs 553.7239 crore.

The next disclosed item to watch is utilisation of the Rs 256.8863 crore of fresh-issue proceeds pending at September 30, 2026, particularly the Rs 203.2414 crore allocated for lender obligations. Karamtara Engineering also reported a Rs 620.4884 crore half-year increase in trade receivables, alongside operating cash flow of Rs 113.9883 crore for the half year ended September 30, 2026.