Mukand Limited profit drops 56% despite 13% sales rise

Mukand Limited reported consolidated profit of Rs 4.30 crore for the quarter ended September 30, 2026, down 56% from Rs 9.88 crore a year earlier, even as revenue from operations rose 13% to Rs 1,315.15 crore. The company’s profit before tax fell to Rs 13.62 crore as expenses increased faster than revenue.

Why did Mukand’s profit fall despite higher September-quarter revenue?

Mukand’s profit fell because total expenses increased by Rs 163.34 crore year on year, exceeding the Rs 154.53 crore rise in revenue from operations. Total expenses reached Rs 1,306.85 crore in the quarter ended September 30, 2026, compared with Rs 1,143.51 crore in the September 2025 quarter, while profit before tax declined 31% to Rs 13.62 crore from Rs 19.87 crore.

The tax expense was Rs 9.32 crore in the September 2026 quarter, against Rs 9.99 crore a year earlier, leaving profit for the period at Rs 4.30 crore. Basic and diluted earnings per share were Rs 0.30, compared with Rs 0.68 in the September 2025 quarter, on paid-up equity share capital of Rs 144.51 crore.

Cost of materials consumed increased to Rs 997.61 crore from Rs 875.83 crore, a rise of Rs 121.78 crore. Other expenses rose to Rs 195.17 crore from Rs 183.40 crore and depreciation and amortisation increased to Rs 17.88 crore from Rs 14.50 crore. Finance costs declined to Rs 34.37 crore from Rs 37.53 crore, but remained above the quarter’s profit before tax of Rs 13.62 crore.

How did Mukand’s September quarter compare with June quarter?

Mukand’s September-quarter profit fell 93% from Rs 57.36 crore in the June 2026 quarter as other income reduced to Rs 5.32 crore from Rs 105.04 crore. Revenue from operations declined 3% to Rs 1,315.15 crore from Rs 1,362.21 crore, while profit before tax fell to Rs 13.62 crore from Rs 60.22 crore.

The company disclosed that it executed a conveyance deed during the first quarter of financial year 2026-27 for approximately 3.07 acres at Kalwe and a 50% undivided interest in approximately 0.06 acres at Dighe. Mukand said the resulting surplus was included in other income, and the June-quarter other-income figure was Rs 105.04 crore.

Specialty Steel segment result declined to Rs 41.88 crore in the September quarter from Rs 89.19 crore in the June quarter, a decrease of Rs 47.31 crore. Industrial Machinery & Engineering Contracts recorded a Rs 2.35 crore loss, compared with a Rs 2.13 crore profit in June, and total segment result decreased to Rs 39.53 crore from Rs 91.32 crore.

Which Mukand segments drove revenue and earnings?

Mukand’s Specialty Steel business generated Rs 1,261.24 crore of September-quarter segment revenue, compared with total segment revenue of Rs 1,315.15 crore. Specialty Steel revenue rose 11% from Rs 1,138.72 crore in the September 2025 quarter, but declined 5% from Rs 1,321.46 crore in the preceding June quarter.

Industrial Machinery & Engineering Contracts reported September-quarter revenue of Rs 53.91 crore, up from Rs 23.73 crore a year earlier and Rs 40.75 crore in June 2026. The segment reported a Rs 2.35 crore loss, compared with a Rs 8.86 crore loss in the September 2025 quarter and a Rs 2.13 crore profit in the June 2026 quarter.

For the six months ended September 30, 2026, Specialty Steel revenue increased to Rs 2,582.70 crore from Rs 2,238.20 crore in the corresponding prior-year period. Its segment result rose to Rs 131.07 crore from Rs 107.45 crore, while Industrial Machinery & Engineering Contracts revenue increased to Rs 94.66 crore from Rs 52.96 crore and its loss narrowed to Rs 0.22 crore from Rs 11.61 crore.

What do Mukand’s six-month cash flow and balance sheet show?

Mukand reported six-month profit of Rs 61.66 crore for the period ended September 30, 2026, up from Rs 38.91 crore a year earlier. Revenue from operations increased to Rs 2,677.36 crore from Rs 2,289.33 crore, while other income rose to Rs 110.36 crore from Rs 41.44 crore.

Net cash generated from operating activities was Rs 79.59 crore for the six months, compared with net cash used in operating activities of Rs 141.45 crore in the prior-year period. The cash-flow statement included a Rs 106.61 crore surplus on sale of assets and land and a Rs 179.38 crore increase in inventories, while cash and cash equivalents were Rs 10.83 crore at September 30, 2026, versus Rs 15.72 crore at the start of the financial year.

Total assets increased to Rs 4,317.17 crore at September 30, 2026 from Rs 4,077.04 crore at March 31, 2026. Inventories rose to Rs 2,581.80 crore from Rs 2,402.43 crore, trade receivables increased to Rs 431.10 crore from Rs 422.63 crore, total equity rose to Rs 1,539.71 crore from Rs 1,522.33 crore, and total liabilities increased to Rs 2,777.46 crore from Rs 2,554.71 crore.

Conclusion

Mukand’s September-quarter result combined higher sales with lower profitability, as revenue growth of Rs 154.53 crore was accompanied by a Rs 163.34 crore increase in total expenses. The contrast with June was also marked: other income declined from Rs 105.04 crore to Rs 5.32 crore, while Specialty Steel segment result reduced from Rs 89.19 crore to Rs 41.88 crore.

The next disclosed matter is the proposed sale of an approximately 9.20-acre Kalwe land parcel, for which Mukand executed a term sheet on July 15, 2026. The Rs 15.94 crore asset held for sale remains subject to government and other authority approvals, permissions or no-objection certificates, and fulfilment of conditions precedent.