National Fittings profit falls 26% as costs outpace income

National Fittings Limited reported net profit of Rs 2.90 crore for the quarter ended 30 September 2026, down 26% from Rs 3.94 crore in the preceding quarter. Total income increased 17% sequentially to Rs 32.83 crore, but total expenditure rose 30% to Rs 29.61 crore, including a Rs 5.30 crore inventory-cost swing.

Why did National Fittings' profit fall despite higher income?

National Fittings' profit fell because expenditure rose faster than total income in the September 2026 quarter. Total income grew by Rs 4.76 crore from Rs 28.07 crore in the June 2026 quarter, while expenditure increased by Rs 6.76 crore from Rs 22.85 crore. As a result, profit before tax declined to Rs 3.22 crore from Rs 5.22 crore, before net profit fell to Rs 2.90 crore.

The largest identified quarterly movement was in changes in inventories of finished goods, work in progress and stock in trade. This line was an expense of Rs 3.11 crore in the September quarter, compared with a Rs 2.19 crore credit in June, creating a Rs 5.30 crore adverse swing. National Fittings also reported a Rs 1.13 crore increase in other expenses, partly offset by a Rs 22.18 lakh reduction in finance cost.

How did National Fittings' September-quarter earnings compare?

National Fittings recorded sequential net-sales growth but lower earnings in the quarter ended 30 September 2026. Net sales increased to Rs 32.09 crore from Rs 27.13 crore in the June quarter, while other income declined to Rs 74.34 lakh from Rs 93.35 lakh. The resulting 17% increase in total income was lower than the nearly 30% rise in expenditure.

The September-quarter result was higher than the corresponding quarter a year earlier. Total income rose from Rs 24.81 crore in the quarter ended 30 September 2025 to Rs 32.83 crore, while net profit increased from Rs 1.84 crore to Rs 2.90 crore. Basic and diluted earnings per share were Rs 3.19 in September 2026, compared with Rs 4.34 in June 2026 and Rs 2.03 a year earlier.

The tax charge also moved between the two recent quarters. Current tax was Rs 86.19 lakh in September, below Rs 1.38 crore in June, while deferred tax was a credit of Rs 54.48 lakh, compared with a credit of Rs 10.17 lakh. These tax movements meant the 38% sequential reduction in profit before tax translated into a smaller 26% reduction in net profit.

Which costs changed most during the quarter?

National Fittings' inventory movement was the main contributor to the increase in September-quarter expenditure. The Rs 3.11 crore charge for changes in inventories followed a Rs 2.19 crore credit in June, whereas cost of materials consumed was lower at Rs 13.76 crore against Rs 13.87 crore. The inventory line accounted for most of the Rs 6.76 crore increase in total expenditure.

Employee benefits expense increased to Rs 3.19 crore from Rs 2.82 crore, a rise of Rs 37.23 lakh, and depreciation and amortisation increased by Rs 6.84 lakh to Rs 82.75 lakh. Other expenses climbed to Rs 5.61 crore from Rs 4.47 crore. Consumption of stores and consumables rose by Rs 22.61 lakh to Rs 3.05 crore, while finance cost declined to Rs 7.54 lakh from Rs 29.72 lakh.

National Fittings reported no purchase of traded goods in either the September 2026 or June 2026 quarter. It also recorded no exceptional items and no extraordinary items for the reported periods. The filing says revenue is presented net of goods and services tax under Indian Accounting Standard 18, meaning the reported net sales figure excludes that tax.

What did National Fittings report for the first half?

National Fittings reported higher income and profit for the half year ended 30 September 2026 than in the corresponding prior-year half. Total income rose to Rs 60.90 crore from Rs 46.30 crore, and net profit increased to Rs 6.84 crore from Rs 4.46 crore. Net sales increased to Rs 59.22 crore from Rs 44.22 crore over the same comparison.

Total expenditure for the six months was Rs 52.46 crore, compared with Rs 39.93 crore a year earlier. Profit before tax rose to Rs 8.43 crore from Rs 6.37 crore, and current tax increased to Rs 2.24 crore from Rs 1.91 crore. The half-year result includes a deferred-tax credit of Rs 64.65 lakh, while the corresponding prior-year half showed no deferred-tax figure.

What did National Fittings disclose about its business and review?

National Fittings said it operates in one business segment, manufacturing pipe fittings, and therefore has no reportable segments under Indian Accounting Standard 108 on operating segments. The company did not provide a product, geography or customer-level breakdown of the Rs 32.09 crore September-quarter net sales.

The board approved the unaudited quarter and half-year results on 30 October 2026 after review by the audit committee. National Fittings said its statutory auditors performed a limited review of the results for the quarter and half year ended 30 September 2026, and that the review report contained no qualification or modification.

National Fittings also said provisions for gratuity and leave encashment were made on an estimated basis pending actuarial ascertainment. The filing states that comparative figures have been regrouped where necessary, and the company reported paid-up equity share capital of Rs 9.08 crore at 30 September 2026.

Conclusion

National Fittings converted a 17% sequential increase in total income into lower quarterly profit because expenditure increased more rapidly, principally after inventory changes moved from a Rs 2.19 crore credit in June to a Rs 3.11 crore expense in September. Even so, the Rs 2.90 crore September-quarter profit and Rs 6.84 crore half-year profit were both above their corresponding 2025 levels.

The next disclosed matter to watch is the proposed amalgamation of Banil Castings Private Limited and AVISA Private Limited into National Fittings. The board approved the scheme on 22 May 2026, but it will take effect only after a BSE observation or no-objection letter, shareholder and creditor approvals, and sanction by the National Company Law Tribunal.