Munjal Auto composites supplied 88% of September profit

Munjal Auto Industries Limited (Munjal Auto) reported that Composite Products and Moulds generated Rs 21.45 crore, or 88.2% of combined segment profit, in the quarter ended September 30, 2026, while Auto Components contributed Rs 2.86 crore after its result fell sharply from Rs 22.76 crore in the preceding quarter.

How did composites supply most of September-quarter segment profit?

Composite Products and Moulds supplied Rs 21.45 crore of Munjal Auto’s Rs 24.31 crore combined segment result before interest and tax for the quarter ended September 30, 2026. Auto Components supplied Rs 2.86 crore, leaving composites with an 88.2% share calculated from the two reported segment results.

Auto Components remained the larger revenue segment, reporting Rs 490.36 crore in the September 2026 quarter, versus Rs 318.92 crore for Composite Products and Moulds. However, Auto Components represented 60.6% of consolidated revenue from operations of Rs 809.28 crore but only 11.8% of the combined segment result.

Munjal Auto reported finance cost of Rs 10.41 crore for the September 2026 quarter, reducing consolidated profit before tax and exceptional items to Rs 13.90 crore from the Rs 24.31 crore combined segment result. The segment schedule showed no other unallocable expenditure net of unallocable income for that quarter.

Why did Auto Components profit fall despite higher revenue?

Auto Components’ segment result fell 87.4% sequentially to Rs 2.86 crore in the quarter ended September 30, 2026, from Rs 22.76 crore in the quarter ended June 30, 2026. Its revenue rose 18.0% over the same period, from Rs 415.39 crore to Rs 490.36 crore, and the filing does not provide a segment-level explanation for the difference.

Composite Products and Moulds also recorded a lower result sequentially, though the change was smaller. Its segment result declined 6.1% to Rs 21.45 crore from Rs 22.84 crore, while revenue increased 12.4% from Rs 283.63 crore to Rs 318.92 crore.

The two movements reduced combined segment profit by 46.7%, from Rs 45.60 crore in the June 2026 quarter to Rs 24.31 crore in the September 2026 quarter. The decline was concentrated in Auto Components, whose Rs 19.90 crore sequential reduction was greater than the Rs 1.39 crore decline in the composites result.

Munjal Auto separately disclosed an unrealised mark-to-market loss of Rs 4.92 crore on investments in the September 2026 quarter, recorded in other expenses. In the June 2026 quarter, it had recognised an unrealised mark-to-market gain of Rs 16.23 crore on mutual-fund investments in other income; neither item is assigned to an operating segment in the segment table.

How did the two segments compare with September 2025?

Both segments reported higher revenue and segment profit than in the quarter ended September 30, 2025. Auto Components revenue rose 30.9% from Rs 374.44 crore to Rs 490.36 crore, while Composite Products and Moulds revenue increased 52.1% from Rs 209.64 crore to Rs 318.92 crore.

Composite Products and Moulds increased its segment result by Rs 1.53 crore year on year, from Rs 19.92 crore to Rs 21.45 crore. Auto Components increased its result by Rs 0.46 crore, from Rs 2.40 crore to Rs 2.86 crore, taking combined segment profit to Rs 24.31 crore from Rs 22.32 crore.

The reported segment-result margin, calculated as segment result divided by revenue, was about 6.7% for Composite Products and Moulds and 0.6% for Auto Components in September 2026. These are calculations from Munjal Auto’s disclosed segment revenue and results, rather than margins stated by management.

For the half year ended September 30, 2026, Auto Components generated Rs 905.75 crore of revenue, compared with Rs 602.55 crore from Composite Products and Moulds. Composites nevertheless produced Rs 44.29 crore of the Rs 69.92 crore combined segment result, while Auto Components produced Rs 25.63 crore; in the corresponding 2025 half year, their results were Rs 35.93 crore and Rs 12.48 crore, respectively.

What changed in segment assets and liabilities?

Auto Components held Rs 875.11 crore of segment assets at September 30, 2026, compared with Rs 768.34 crore for Composite Products and Moulds. Auto Components assets increased from Rs 804.65 crore at June 30, 2026, while composite assets declined from Rs 828.74 crore.

Segment liabilities moved in the opposite directions during the three months to September 30, 2026. Auto Components liabilities rose to Rs 455.24 crore from Rs 379.34 crore, whereas Composite Products and Moulds liabilities fell to Rs 694.01 crore from Rs 758.50 crore.

The filing does not disclose segment capital expenditure, depreciation, borrowing allocations or working-capital drivers for the September 2026 quarter. It therefore shows the reported asset and liability positions, but does not establish why the segment with Rs 768.34 crore of assets produced Rs 21.45 crore of quarterly segment profit.

Conclusion

Munjal Auto’s September 2026 disclosure shows that revenue scale and segment profit contribution diverged. Auto Components generated Rs 490.36 crore of revenue, more than the Rs 318.92 crore from composites, but Composite Products and Moulds produced Rs 21.45 crore of the Rs 24.31 crore combined segment result because Auto Components’ result fell to Rs 2.86 crore.

The next reported period will show whether Auto Components’ result changes from its September 2026 level and whether Composite Products and Moulds maintains a similar contribution. The filing also leaves the segment-level reason for Auto Components’ sequential profit decline undisclosed, while the value of the company-level investment portfolio may continue to affect reported earnings through mark-to-market movements.