Mafatlal Industries Q2 profit falls 50% to Rs 10.69 crore

Mafatlal Industries Limited reported consolidated profit of Rs 10.69 crore for the quarter ended September 30, 2026, down 50% from Rs 21.52 crore a year earlier, as revenue from operations declined 23% to Rs 794.60 crore and lower consumer durables revenue outweighed growth in textile and digital infrastructure revenue.

Why did Mafatlal Industries' September-quarter profit fall?

Mafatlal Industries' quarterly profit fell as total income and segment results declined in the quarter ended September 30, 2026. Total income was Rs 804.72 crore, compared with Rs 1,040.63 crore in the September 2025 quarter, while total expenses declined to Rs 790.27 crore from Rs 1,012.33 crore. Profit before tax consequently fell 49% to Rs 14.45 crore from Rs 28.30 crore.

The result also weakened sequentially. Revenue from operations declined from Rs 942.65 crore in the quarter ended June 30, 2026 to Rs 794.60 crore in the September quarter, while profit for the period decreased from Rs 14.68 crore to Rs 10.69 crore. Basic earnings per share, or EPS, was Rs 1.51, against Rs 2.03 in the preceding quarter and Rs 2.99 a year earlier.

Other expenses increased to Rs 109.92 crore from Rs 54.38 crore in the year-earlier quarter, while purchases of stock-in-trade decreased to Rs 765.30 crore from Rs 872.49 crore. Changes in inventories of finished goods, work-in-progress and stock-in-trade were a reduction of Rs 147.15 crore, compared with an increase of Rs 14.67 crore a year earlier. Deferred tax expense was Rs 3.76 crore, down from Rs 6.78 crore.

Which business segment caused Mafatlal Industries' revenue decline?

Consumer durables and others caused the largest decline, with revenue falling 57% year on year to Rs 254.15 crore in the September 2026 quarter from Rs 596.17 crore. The segment's revenue was also down from Rs 494.65 crore in the June 2026 quarter, making it the principal source of the consolidated revenue decrease despite expansion in the other two segments.

Consumer durables and others recorded a segment result of Rs 3.29 crore, compared with Rs 8.45 crore a year earlier and Rs 7.95 crore in the June quarter. Textile and related products became the largest revenue segment in the September quarter, reporting Rs 470.10 crore, or about 59% of consolidated revenue, while consumer durables and others represented about 32%.

Textile and related products increased revenue 13% from Rs 417.68 crore a year earlier and from Rs 406.05 crore in the June 2026 quarter. However, its segment result declined to Rs 5.47 crore from Rs 17.54 crore in the September 2025 quarter and Rs 18.45 crore in the preceding quarter. Higher textile revenue therefore coincided with lower reported segment earnings in the quarter.

How much did Mafatlal Industries' digital infrastructure business grow?

Digital infrastructure revenue rose to Rs 70.35 crore in the quarter ended September 30, 2026, from Rs 15.84 crore a year earlier and Rs 41.95 crore in the June 2026 quarter. Its segment result increased to Rs 9.81 crore from Rs 2.93 crore a year earlier and Rs 5.05 crore sequentially, exceeding the reported segment results of textile and related products and consumer durables and others.

For the half year ended September 30, 2026, digital infrastructure revenue was Rs 112.30 crore, compared with Rs 22.36 crore in the corresponding prior-year half. Its segment result was Rs 14.86 crore, against Rs 3.45 crore a year earlier. The segment accounted for about 9% of September-quarter revenue but about 53% of the Rs 18.57 crore total segment results before finance costs and unallocable expenses.

Mafatlal Industries reports textile and related products, digital infrastructure, and consumer durables and others as operating segments under Indian Accounting Standard 108. At September 30, 2026, digital infrastructure segment assets were Rs 158.95 crore, compared with Rs 54.53 crore a year earlier, while segment liabilities were Rs 41.00 crore, against Rs 10.41 crore.

What do Mafatlal Industries' half-year results and balance sheet show?

Mafatlal Industries recorded profit of Rs 25.37 crore for the half year ended September 30, 2026, down from Rs 67.08 crore in the corresponding prior-year period. Half-year revenue from operations declined to Rs 1,737.25 crore from Rs 2,269.97 crore, as consumer durables and others revenue fell to Rs 748.80 crore from Rs 1,445.68 crore.

Total assets were Rs 2,122.67 crore at September 30, 2026, compared with Rs 1,750.15 crore at March 31, 2026. Trade receivables increased to Rs 1,117.21 crore from Rs 710.22 crore, and inventories rose to Rs 228.38 crore from Rs 105.61 crore. Total liabilities increased to Rs 1,297.55 crore from Rs 978.69 crore at the March year-end.

Operating activities used Rs 189.79 crore of cash in the half year, compared with an inflow of Rs 101.59 crore in the corresponding prior-year period. The cash-flow statement recorded a Rs 413.47 crore increase in trade and other receivables and a Rs 122.77 crore increase in inventories. Cash and cash equivalents declined to Rs 8.50 crore at September 30, 2026 from Rs 123.94 crore at the start of the financial year.

What interim dividend has Mafatlal Industries declared?

Mafatlal Industries' board declared an interim dividend of Re 1 per equity share of face value Rs 2 for financial year 2026-27, amounting to Rs 7.22 crore on 7,21,78,930 shares. The record date for determining entitlement is November 13, 2026, according to the consolidated results approved by the board on November 4, 2026.

The consolidated results include Mafatlal Services Limited, Pieflowtech Solutions Private Limited and Mafatlal Apparel Exports Private Limited. The independent reviewer said interim financial information from the three subsidiaries had not been reviewed by their auditors; together, they reported revenue of Rs 4.44 crore and net loss after tax of Rs 0.35 crore for the September 2026 quarter. The reviewer stated that, according to management, this information was not material to the group.

Conclusion

The September-quarter figures show that digital infrastructure's revenue and segment-result growth, alongside higher textile revenue, did not offset the contraction in consumer durables and others. Consolidated revenue declined by Rs 235.09 crore year on year and profit declined by Rs 10.83 crore, while textile and consumer durables both reported lower segment results.

The next disclosed event is the November 13, 2026 record date for the Re 1 per-share interim dividend. Subsequent results will also address the unresolved movement in trade receivables, which rose to Rs 1,117.21 crore at September 30, 2026, and operating cash flow, which was an outflow of Rs 189.79 crore in the first half.