Meghmani Organics Q2 Profit Nearly Triples as Pigments Recover

Meghmani Organics Limited reported consolidated net profit of Rs 33.88 crore for the quarter ended September 30, 2026, up 193.3% from Rs 11.55 crore a year earlier, as its pigment segment returned to a Rs 7.27 crore profit from a Rs 20.81 crore loss. Revenue from operations increased 15.5% to Rs 666.92 crore.

How did Meghmani Organics perform in Q2?

Meghmani Organics recorded Rs 33.88 crore in consolidated net profit in the September 2026 quarter, compared with Rs 11.55 crore in the September 2025 quarter. Profit before tax rose to Rs 47.95 crore from Rs 26.09 crore, while basic and diluted earnings per share increased to Rs 1.33 from Rs 0.45. The unaudited consolidated results were approved on November 4, 2026.

Revenue from operations reached Rs 666.92 crore, compared with Rs 577.26 crore a year earlier and Rs 542.83 crore in the preceding June 2026 quarter. Total income, including other income, was Rs 686.99 crore against Rs 605.02 crore in the prior-year quarter, while total expenses increased to Rs 639.04 crore from Rs 578.92 crore. Meghmani Organics reported no exceptional items in either quarter.

Meghmani Organics’ net profit was lower than Rs 48.19 crore in the June 2026 quarter, although revenue rose from Rs 542.83 crore sequentially. Profit before tax similarly fell from Rs 66.98 crore in June 2026, indicating that the higher September-quarter revenue did not translate into a sequential increase in pre-tax earnings.

Which business drove Meghmani Organics’ Q2 earnings change?

Meghmani Organics’ pigment business was the main source of the year-on-year profit change, reporting segment profit of Rs 7.27 crore in the September 2026 quarter against a segment loss of Rs 20.81 crore a year earlier. Pigment revenue increased to Rs 187.28 crore from Rs 130.16 crore, and segment profit also rose from Rs 2.85 crore in the June 2026 quarter.

Agrochemicals remained Meghmani Organics’ largest reported revenue segment, with September-quarter revenue of Rs 496.75 crore compared with Rs 442.63 crore a year earlier. However, agrochemicals segment profit declined to Rs 53.14 crore from Rs 79.47 crore. The increase of Rs 54.12 crore in agrochemicals revenue therefore coincided with a Rs 26.33 crore reduction in its segment profit.

The others segment, which includes merchant trading and crop nutrition, reported revenue of Rs 21.40 crore and segment profit of Rs 3.10 crore, versus revenue of Rs 22.77 crore and profit of Rs 0.28 crore a year earlier. Total segment profit before finance cost, unallocable items and eliminations was Rs 63.51 crore, compared with Rs 58.94 crore in the September 2025 quarter.

What changed in Meghmani Organics’ costs and first-half results?

Meghmani Organics’ finance cost fell to Rs 14.97 crore in the September 2026 quarter from Rs 23.78 crore a year earlier. Other unallocable expenses, net of income, were a credit of Rs 0.01 crore, compared with an expense of Rs 8.56 crore in the prior-year quarter, while current tax was Rs 14.99 crore and the net deferred-tax charge was Rs 1.26 crore.

For the half year ended September 30, 2026, Meghmani Organics reported net profit of Rs 82.08 crore, compared with Rs 24.24 crore in the corresponding 2025 period. Half-year revenue from operations rose to Rs 1,209.75 crore from Rs 1,190.88 crore, and profit before tax increased to Rs 114.94 crore from Rs 50.39 crore. Half-year earnings per share were Rs 3.23, compared with Rs 0.95.

The first-half segment data showed pigment profit of Rs 10.12 crore, reversing a loss of Rs 31.96 crore in the prior-year half, as pigment revenue rose to Rs 330.86 crore from Rs 280.90 crore. Agrochemicals revenue declined to Rs 888.36 crore from Rs 900.53 crore, and its segment profit decreased to Rs 123.20 crore from Rs 150.53 crore.

How did Meghmani Organics’ cash flow and balance sheet move?

Meghmani Organics generated net operating cash flow of Rs 110.91 crore in the half year ended September 30, 2026, up from Rs 66.83 crore a year earlier. The group spent Rs 31.92 crore on property, plant, equipment and intangible assets, compared with Rs 24.56 crore in the earlier period, and used Rs 97.47 crore in financing activities.

Term-loan repayments totalled Rs 64.89 crore in the six-month period, compared with Rs 85.50 crore a year earlier, while finance cost paid was Rs 35.68 crore. Cash and cash equivalents ended September 30, 2026 at Rs 9.20 crore, down from Rs 15.81 crore at March 31, 2026, following a net decrease of Rs 6.61 crore during the half year.

Trade receivables increased to Rs 871.26 crore at September 30, 2026 from Rs 672.13 crore at March 31, 2026, while inventories rose to Rs 567.95 crore from Rs 528.55 crore. Current borrowings declined to Rs 551.62 crore from Rs 565.00 crore, and non-current borrowings fell to Rs 112.60 crore from Rs 160.97 crore over the same period.

What corporate plans has Meghmani Organics disclosed?

Meghmani Organics disclosed that the National Company Law Tribunal, Ahmedabad Bench, approved the amalgamation of Kilburn Chemicals Limited and Meghmani Crop Nutrition Limited, both wholly owned subsidiaries, with Meghmani Organics on October 8, 2026. The scheme has an appointed date of January 1, 2026, but had not become effective at September 30, 2026, so no accounting effect was recognised in the reported financial statements.

The approved scheme provides for the transfer of the subsidiaries’ assets, liabilities, contracts, rights and obligations to Meghmani Organics without consideration or issue of shares. Management said the transaction is intended to create operational synergies, rationalise the group structure, improve administrative efficiency and simplify the legal-entity structure; accounting is intended to use the pooling-of-interests method when the scheme becomes effective.

Separately, Meghmani Organics agreed in the prior year to invest Rs 0.26 lakh for 26% equity and Rs 3.63 crore in compulsorily convertible debentures of Pro-Zeal Green Power Fifteen Private Limited. The power producer is developing a 3.30-megawatt wind-solar hybrid project in Gujarat, and Meghmani Organics agreed to purchase at least 51% of its generated power for 25 years. By March 31, 2026, the company had invested Rs 0.26 lakh in equity and Rs 36.27 lakh in non-cumulative compulsorily convertible debentures.

Conclusion

Meghmani Organics’ September-quarter results show that the return to profit in pigments was central to the 193.3% increase in consolidated net profit to Rs 33.88 crore. That recovery occurred alongside higher revenue in agrochemicals, but agrochemicals segment profit fell year on year, leaving the two principal businesses on different earnings paths.

The next disclosed event to watch is the scheme of amalgamation becoming effective, when Meghmani Organics expects to recognise its accounting impact and any consequential restatement of comparative information. Progress on the 3.30-megawatt Gujarat wind-solar project is also relevant because Meghmani Organics has agreed to buy a minimum 51% of its power output for 25 years.