Marco Cables profit falls 21% despite half-year revenue rise

Marco Cables & Conductors Limited reported profit after tax of Rs 2.37 crore for the half year ended September 30, 2026, down 21.19% from Rs 3.01 crore a year earlier, while revenue from operations rose 1.23% to Rs 54.69 crore. Higher finance costs, other expenses and the change in inventories outweighed the sales increase.

Why did Marco Cables' half-year profit decline?

Marco Cables' profit declined because expenses rose faster than income in the half year ended September 30, 2026. Total income from operations increased by Rs 62.51 lakh year on year to Rs 54.79 crore, but total expenses increased by Rs 1.48 crore to Rs 51.63 crore, reducing profit before tax to Rs 3.17 crore from Rs 4.02 crore.

Finance costs rose by Rs 56.42 lakh to Rs 3.46 crore from Rs 2.90 crore in the half year ended September 30, 2025. Other expenses increased by Rs 50.97 lakh to Rs 2.70 crore, while depreciation and amortisation rose by Rs 2.13 lakh to Rs 27.86 lakh. These increases came despite lower material consumption.

The changes in inventories line was an expense of Rs 17.60 lakh in the September 2026 half year, compared with a credit of Rs 4.42 crore in the corresponding prior-year period. This movement, together with the increase in finance costs and other expenses, was larger than the Rs 66.27 lakh rise in revenue from operations.

Tax expense was Rs 79.75 lakh for the September 2026 half year, including current tax of Rs 79.40 lakh and deferred tax of Rs 35,000. This was below the Rs 1.01 crore tax expense reported a year earlier, partly limiting the reduction in profit after tax. Marco Cables reported no exceptional items in either half-year period.

How did Marco Cables' income and costs compare year on year?

Marco Cables recorded revenue growth of 1.23% year on year, but its cost movements were mixed across the two half years. Revenue from operations was Rs 54.69 crore for the half year ended September 30, 2026, versus Rs 54.03 crore a year earlier, while other income declined to Rs 10.16 lakh from Rs 13.92 lakh.

Cost of materials consumed decreased by Rs 4.08 crore to Rs 44.39 crore from Rs 48.47 crore. However, the reduction did not translate into higher pre-tax earnings because the inventory line changed from a Rs 4.42 crore credit to a Rs 17.60 lakh expense, while finance costs and other expenses increased.

Employee benefit expense rose by Rs 1.90 lakh to Rs 76.50 lakh from Rs 74.60 lakh. Marco Cables states that Accounting Standard 17 segment reporting is not applicable because its business falls within one segment, so the filing does not provide separate revenue or profit figures for power cables, control cables or conductors.

How did Marco Cables perform versus the preceding half year?

Marco Cables improved sequentially from the six months ended March 31, 2026, although its September 2026 profit remained below the year-earlier level. Profit after tax increased to Rs 2.37 crore from Rs 1.19 crore, and profit before tax rose to Rs 3.17 crore from Rs 1.88 crore.

Revenue from operations increased by Rs 5.90 crore from Rs 48.79 crore in the March 2026 half year to Rs 54.69 crore in the September 2026 half year. Total expenses rose by Rs 4.58 crore to Rs 51.63 crore from Rs 47.05 crore, leaving a Rs 1.29 crore increase in profit before tax.

The sequential expense comparison includes a rise in material consumption to Rs 44.39 crore from Rs 35.73 crore. Employee benefit expense declined to Rs 76.50 lakh from Rs 1.44 crore, while finance costs increased to Rs 3.46 crore from Rs 3.36 crore. Changes in inventories fell to Rs 17.60 lakh from Rs 3.82 crore.

Basic and diluted earnings per equity share, which Marco Cables says are not annualised, were Rs 1.27 for the September 2026 half year. The figure was above Rs 0.64 for the March 2026 half year but below Rs 1.61 in the September 2025 half year. Paid-up equity share capital was unchanged at Rs 18.70 crore in all three reported periods.

What does Marco Cables' cash-flow disclosure show?

Marco Cables reported Rs 8.85 crore of cash generated from operating activities in the half year ended September 30, 2026. The cash-flow statement reported operating profit before working-capital changes of Rs 6.87 crore, including Rs 3.46 crore of finance costs and Rs 27.86 lakh of depreciation and amortisation adjustments.

The statement recorded a Rs 1.20 crore increase in inventories and a Rs 5.46 crore decrease in accounts receivable during the period. It also showed Rs 22.06 lakh of cash generated from trade payables and a Rs 27.86 lakh decrease in other current liabilities, as presented in the cash-flow statement.

Investing activities used Rs 21.67 lakh during the half year, described as purchase or sale of property, plant and equipment. Financing activities used Rs 8.38 crore, after a Rs 19.50 crore reduction in short-term borrowings, Rs 14.58 crore of net proceeds from long-term borrowings and Rs 3.46 crore of finance costs.

Cash and cash equivalents were Rs 82.06 lakh at September 30, 2026, compared with Rs 51.21 lakh at the beginning of the period. The unaudited results were approved by Marco Cables' board on November 11, 2026, and Jay Gupta & Associates issued a limited review report dated the same day.

Conclusion

Marco Cables reported higher revenue but lower year-on-year profit for the half year ended September 30, 2026. Revenue from operations increased to Rs 54.69 crore, while profit after tax fell to Rs 2.37 crore as higher finance costs, other expenses and the movement in inventories more than offset lower material consumption. Sequentially, profit after tax increased from Rs 1.19 crore in the March 2026 half year.

The next reported results will show whether the sequential improvement continues and whether finance costs, which were Rs 3.46 crore in the September 2026 half year, change further. Marco Cables did not provide a revenue, profitability or borrowing target in this filing, and its single-segment reporting means future financial statements will remain the disclosed measure of changes in its operating mix.