Kranti Industries H1 profit falls 75% despite revenue growth

Kranti Industries Limited reported standalone profit after tax of Rs 49.99 lakh for the six months ended 30 September 2026, down about 75% from Rs 1.97 crore a year earlier, although revenue from operations rose 21% to Rs 50.62 crore. Employee costs, other expenses, finance costs and depreciation rose faster than income.

Why did Kranti Industries' H1 profit fall despite revenue growth?

Kranti Industries' profit declined because total expenses rose by Rs 10.96 crore, exceeding the Rs 8.88 crore increase in total income during the six months ended 30 September 2026. Revenue from operations increased by Rs 8.92 crore to Rs 50.62 crore from Rs 41.70 crore in the corresponding six months ended 30 September 2025.

Total income reached Rs 51.15 crore, compared with Rs 42.27 crore a year earlier, while other income fell to Rs 52.86 lakh from Rs 56.50 lakh. Total expenses rose to Rs 50.46 crore from Rs 39.50 crore, leaving profit before tax of Rs 69.08 lakh, versus Rs 2.76 crore in the prior-year half.

The change was evident before tax: profit before tax fell by Rs 2.07 crore, while profit after tax fell by Rs 1.47 crore to Rs 49.99 lakh. The filing reports current tax expense of Rs 37.42 lakh and deferred-tax income of Rs 18.33 lakh for the six months ended 30 September 2026, compared with current tax of Rs 50.68 lakh and deferred tax of Rs 55.91 lakh a year earlier.

Which costs rose most for Kranti Industries in H1?

Kranti Industries recorded its largest expense increases in employee benefits and other expenses during the six months ended 30 September 2026. Employee benefit expense rose by Rs 4.28 crore to Rs 10.72 crore from Rs 6.44 crore, while other expenses increased by Rs 3.53 crore to Rs 8.88 crore from Rs 5.35 crore.

Finance cost rose to Rs 2.46 crore from Rs 1.74 crore, an increase of Rs 72.01 lakh, and depreciation and amortisation increased to Rs 4.06 crore from Rs 3.29 crore, up Rs 76.23 lakh. Together, employee costs, other expenses, finance costs and depreciation increased by Rs 9.30 crore, compared with the Rs 8.92 crore rise in revenue from operations.

Cost of materials consumed increased by Rs 1.19 crore to Rs 28.61 crore from Rs 27.42 crore. Changes in inventories of finished goods, work in progress and stock in trade reduced expenses by Rs 4.27 crore, but this credit was Rs 46.93 lakh lower than the Rs 4.74 crore reduction recorded in the comparable half year. The filing provides no management explanation for the individual cost movements.

How did Kranti Industries perform in the September 2026 quarter?

Kranti Industries returned to a standalone profit after tax of Rs 55.52 lakh in the quarter ended 30 September 2026 after reporting a loss of Rs 5.53 lakh in the quarter ended 30 June 2026. Revenue from operations declined slightly to Rs 25.16 crore from Rs 25.47 crore in the preceding quarter, while total expenses declined to Rs 24.60 crore from Rs 25.86 crore.

The September 2026 quarter remained below the year-earlier quarter, when Kranti Industries reported profit after tax of Rs 1.30 crore. Profit before tax was Rs 82.88 lakh in the September 2026 quarter, compared with Rs 1.75 crore in the quarter ended 30 September 2025, as employee benefit expense rose to Rs 5.21 crore from Rs 3.28 crore.

Other expenses in the September 2026 quarter increased to Rs 4.65 crore from Rs 2.88 crore a year earlier, and finance cost rose to Rs 1.18 crore from Rs 88.21 lakh. Basic and diluted earnings per share, or EPS, were Rs 0.44 for the quarter, against Rs 1.02 a year earlier; the filing states that EPS is not annualised.

What do Kranti Industries' balance sheet and cash flows show?

Kranti Industries' standalone total assets were Rs 125.60 crore at 30 September 2026, compared with Rs 122.72 crore at 31 March 2026. Inventories increased by Rs 9.04 crore to Rs 38.92 crore, while trade receivables declined by Rs 6.90 crore to Rs 11.19 crore over the same period.

Total standalone borrowings, comprising current and non-current borrowings, rose to Rs 43.96 crore at 30 September 2026 from Rs 41.84 crore at 31 March 2026. Current borrowings increased to Rs 24.68 crore from Rs 23.01 crore, while non-current borrowings rose to Rs 19.28 crore from Rs 18.82 crore. Total lease liabilities declined to Rs 5.12 crore from Rs 5.94 crore.

Net cash generated from operating activities was Rs 4.33 crore for the half year ended 30 September 2026, compared with Rs 3.01 crore for the half year ended 30 September 2025. The cash-flow statement records capital expenditure of Rs 3.71 crore on property, plant and equipment, intangible assets and capital work in progress, compared with Rs 3.11 crore in the prior-year period. Cash and cash equivalents were Rs 10.74 lakh at 30 September 2026, down from Rs 13.18 lakh at 31 March 2026.

Conclusion

Kranti Industries' half-year numbers show that sales growth did not translate into higher profit because employee benefits, other expenses, finance costs and depreciation increased substantially. Revenue rose to Rs 50.62 crore, but the Rs 10.96 crore increase in expenses reduced profit after tax to Rs 49.99 lakh from Rs 1.97 crore in the prior-year half.

The unresolved matter is whether the September-quarter profit of Rs 55.52 lakh can continue after the June-quarter loss of Rs 5.53 lakh. Subsequent results will also show whether inventory, which rose to Rs 38.92 crore at 30 September 2026, and borrowings, which reached Rs 43.96 crore, change alongside capital expenditure of Rs 3.71 crore in the half year.