Novalum Materials revenue doubles, quarterly profit declines

Novalum Materials Limited reported revenue from operations of Rs 24.99 crore for the quarter ended September 30, 2026, more than double Rs 12.25 crore a year earlier, while net profit fell sequentially to Rs 27.79 lakh from Rs 45.40 lakh in the June 2026 quarter. The unaudited standalone results were approved on November 14, 2026.

How did Novalum Materials perform in the September quarter?

Novalum Materials recorded revenue from operations of Rs 24.99 crore in the September 2026 quarter, compared with Rs 14.36 crore in the June 2026 quarter and Rs 12.25 crore in the September 2025 quarter. Total income, which includes other income, was Rs 25.37 crore, against Rs 14.88 crore in the preceding quarter and Rs 12.54 crore a year earlier. Other income was Rs 38 lakh for the September quarter, compared with Rs 52.28 lakh in June 2026.

Novalum Materials reported profit after tax of Rs 27.79 lakh for the September quarter, down from Rs 45.40 lakh in June 2026 and Rs 37.46 lakh in September 2025. Profit before tax was Rs 36.23 lakh, compared with Rs 61.58 lakh in the preceding quarter and Rs 49.96 lakh a year earlier. Basic and diluted earnings per share, which were not annualised, were Rs 0.21, versus Rs 0.35 in June 2026 and Rs 0.28 in the year-earlier quarter.

Why did Novalum Materials’ quarterly profit decline despite higher revenue?

Novalum Materials’ reported costs increased alongside the rise in September-quarter revenue, while profit before tax fell by Rs 25.35 lakh from the June 2026 quarter. Purchase of stock-in-trade rose to Rs 24.57 crore from Rs 14.05 crore in June 2026, and total expenses increased to Rs 25.01 crore from Rs 14.27 crore. The company disclosed trading as its single reportable operating segment under Indian Accounting Standard 108.

Novalum Materials reported other expenses of Rs 25.11 lakh in the September quarter, compared with Rs 13.23 lakh in June 2026 and Rs 5.08 lakh a year earlier. Employee-benefit expense rose to Rs 8.96 lakh from Rs 98,000 in the preceding quarter, finance cost increased to Rs 3.50 lakh from Rs 1.36 lakh, and depreciation and amortisation was Rs 6.76 lakh against Rs 5.66 lakh. Total tax expense declined to Rs 8.45 lakh from Rs 16.17 lakh sequentially, including a deferred-tax credit of Rs 2.12 lakh.

How did Novalum Materials’ first-half result compare with last year?

Novalum Materials reported revenue from operations of Rs 39.36 crore for the six months ended September 30, 2026, compared with Rs 22.68 crore in the corresponding half of 2025. Total income increased to Rs 40.26 crore from Rs 23.21 crore, including other income of Rs 90.28 lakh against Rs 53.01 lakh. The half-year result combines the quarters ended June 30 and September 30, 2026.

Novalum Materials’ first-half net profit rose to Rs 73.19 lakh from Rs 57.30 lakh in the corresponding 2025 half year, even though September-quarter profit was below the June-quarter figure. Profit before tax increased to Rs 97.81 lakh from Rs 76.42 lakh, while total tax expense was Rs 24.62 lakh compared with Rs 19.12 lakh. Basic and diluted earnings per share were Rs 0.56 for the six months, against Rs 0.44 a year earlier.

Purchases of stock-in-trade for the six months were Rs 38.63 crore, compared with Rs 22.13 crore in the prior-year period. Total expenses rose to Rs 39.29 crore from Rs 22.45 crore, while employee-benefit expense was Rs 9.95 lakh against Rs 6.19 lakh. Finance cost was Rs 4.86 lakh for the first half, compared with nil in the corresponding 2025 period, and depreciation and amortisation was Rs 12.42 lakh compared with nil.

What changed in Novalum Materials’ balance sheet and cash flow?

Novalum Materials had total assets of Rs 18.36 crore as of September 30, 2026, compared with Rs 16.88 crore at March 31, 2026. Cash and cash equivalents increased to Rs 13.04 crore from Rs 22.23 lakh, while non-current loans declined to Rs 2.87 crore from Rs 14.79 crore. Trade receivables decreased to Rs 65.13 lakh from Rs 77.93 lakh during the same period.

Novalum Materials reported shareholders’ funds of Rs 15.78 crore at September 30, 2026, compared with Rs 15.05 crore at March 31, 2026. Paid-up equity share capital remained Rs 13.15 crore, while other equity increased to Rs 2.63 crore from Rs 1.90 crore. Non-current borrowings rose to Rs 1.24 crore from Rs 72.95 lakh, and current liabilities increased to Rs 1.34 crore from Rs 1.10 crore.

Net cash generated from operating activities was Rs 11.65 crore in the six months to September 2026, compared with net cash used of Rs 10.84 crore in the corresponding 2025 period. The cash-flow statement recorded a Rs 11.92 crore decrease in loans and advances as a working-capital movement, compared with a Rs 17.48 crore increase in the prior-year half. Other current assets increased by Rs 58.99 lakh, while trade payables decreased by Rs 20.14 lakh.

What did the limited review say about Novalum Materials’ results?

Novalum Materials’ statutory auditor, BAS & Co. LLP, stated that nothing had come to its attention in the limited review that caused it to believe the September 2026 standalone statement failed to make required disclosures or contained a material misstatement. The review report was dated November 14, 2026 and covered the quarter and half year ended September 30, 2026.

BAS & Co. LLP said the work was conducted under Standard on Review Engagement 2410, which requires moderate assurance and is more limited than an audit. The auditor stated that it had not performed an audit and therefore did not express an audit opinion. Novalum Materials said its results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and were reviewed by the Audit Committee before Board approval on November 14, 2026.

Conclusion

Novalum Materials delivered higher trading revenue in the September 2026 quarter and first half, with quarterly revenue from operations rising to Rs 24.99 crore from Rs 12.25 crore a year earlier and six-month revenue reaching Rs 39.36 crore. However, quarterly net profit declined to Rs 27.79 lakh from Rs 45.40 lakh in June as purchase costs and other reported expenses increased with revenue.

What to watch next is whether the unresolved gap between higher trading revenue and lower sequential profit changes in future results. The filing does not disclose a revenue target, expansion plan or profit guidance, but it records cash and cash equivalents of Rs 13.04 crore at September 30, 2026 and identifies trading as Novalum Materials’ only reportable segment.