Panchmahal Steel September-quarter profit rises to Rs 5.04 crore

Panchmahal Steel Limited (Panchmahal Steel) reported profit for the period of Rs 5.04 crore for the quarter ended 30 September 2026, compared with Rs 0.55 crore a year earlier. Revenue from operations rose about 15% to Rs 106.75 crore, while profit before tax increased to Rs 6.64 crore from Rs 0.79 crore in the unaudited standalone results.

How did Panchmahal Steel perform in the September quarter?

Panchmahal Steel’s September-quarter profit increased by Rs 4.49 crore year on year to Rs 5.04 crore, while total comprehensive income reached Rs 4.64 crore against Rs 0.58 crore in the quarter ended 30 September 2025. The latest comprehensive-income figure included an other comprehensive loss, net of tax, of Rs 0.40 crore, compared with income of Rs 2.08 lakh a year earlier.

Revenue from operations rose to Rs 106.75 crore from Rs 92.63 crore, and other income increased to Rs 0.90 crore from Rs 0.74 crore. As a result, total income grew to Rs 107.64 crore from Rs 93.38 crore, while total expenses rose to Rs 101.00 crore from Rs 92.59 crore. The gap between income and expenses lifted profit before tax to Rs 6.64 crore from Rs 0.79 crore.

Panchmahal Steel also improved sequentially from the quarter ended 30 June 2026, when revenue was Rs 93.97 crore and profit for the period was Rs 4.34 crore. Profit before tax was Rs 5.80 crore in the June quarter. Basic and diluted earnings per share, which were not annualised, rose to Rs 2.64 from Rs 2.27 in the preceding quarter and Rs 0.29 in the year-earlier quarter.

What changed in Panchmahal Steel’s costs and profitability?

Panchmahal Steel’s cost of materials consumed fell to Rs 64.07 crore in the September 2026 quarter from Rs 67.93 crore a year earlier, despite the Rs 14.12 crore rise in revenue from operations. Total expenses increased by Rs 8.41 crore, less than the Rs 14.26 crore increase in total income, resulting in the Rs 5.85 crore increase in profit before tax.

Power and fuel expense increased to Rs 13.96 crore from Rs 10.52 crore, employee benefits expense rose to Rs 6.27 crore from Rs 6.03 crore, and other expenses increased to Rs 8.97 crore from Rs 8.17 crore. Depreciation and amortisation was Rs 2.01 crore, compared with Rs 1.99 crore, while finance costs declined to Rs 1.09 crore from Rs 1.14 crore.

Changes in inventories of finished goods resulted in an expense of Rs 4.62 crore during the latest quarter, versus a credit of Rs 3.19 crore in the September 2025 quarter. Panchmahal Steel recorded a current-tax provision of Rs 1.92 crore and a deferred-tax credit of Rs 0.31 crore, producing the reported Rs 5.04 crore profit for the period.

Panchmahal Steel reports manufacturing of stainless steel long products as its sole reportable segment under Indian Accounting Standard 108, or Ind AS 108, on segment reporting. The filing therefore does not split the Rs 106.75 crore quarterly revenue or Rs 5.04 crore profit among product categories, customer groups or geographies.

What were Panchmahal Steel’s first-half results?

Panchmahal Steel returned to profit in the six months ended 30 September 2026, reporting profit for the period of Rs 9.38 crore against a loss of Rs 1.37 crore in the corresponding six months of 2025. Profit before tax was Rs 12.44 crore, compared with a loss before tax of Rs 1.83 crore in the prior-year first half.

First-half revenue from operations increased to Rs 200.72 crore from Rs 180.17 crore, while total income reached Rs 202.25 crore against Rs 181.96 crore. Total expenses were Rs 189.81 crore, compared with Rs 183.79 crore. Cost of materials consumed was broadly unchanged at Rs 128.38 crore, versus Rs 128.66 crore, whereas power and fuel expense increased to Rs 26.72 crore from Rs 21.69 crore.

The six-month tax charge included a current-tax provision of Rs 3.76 crore and a deferred-tax credit of Rs 0.70 crore. Total comprehensive income was Rs 8.57 crore, compared with a comprehensive loss of Rs 1.33 crore in the first half of 2025. Basic and diluted earnings per share, not annualised, were Rs 4.92, compared with a loss per share of Rs 0.72.

What do Panchmahal Steel’s cash flow and balance sheet show?

Panchmahal Steel generated net cash from operating activities of Rs 1.72 lakh in the six months ended 30 September 2026, compared with Rs 10.26 crore in the corresponding 2025 period. Operating profit before working-capital changes rose to Rs 18.38 crore from Rs 4.63 crore, but inventories, receivables, other current assets and tax payments absorbed most of that amount.

Inventories absorbed Rs 11.38 crore of cash, trade receivables absorbed Rs 2.40 crore and other current assets absorbed Rs 1.70 crore in the latest six months. Direct-tax payments were Rs 2.31 crore, against Rs 0.11 crore a year earlier. Investing activities used Rs 1.01 crore, including Rs 0.67 crore for property, plant and equipment purchases and Rs 0.40 crore placed in bank deposits.

Total assets were Rs 238.62 crore at 30 September 2026, up from Rs 224.41 crore at 31 March 2026. Inventories increased to Rs 131.80 crore from Rs 120.43 crore, trade receivables rose to Rs 50.10 crore from Rs 47.53 crore, and cash and cash equivalents increased to Rs 1.72 crore from Rs 0.29 crore. Current borrowings rose to Rs 39.77 crore from Rs 35.22 crore, while total equity increased to Rs 159.26 crore from Rs 150.69 crore.

Was Panchmahal Steel’s September-quarter result independently reviewed?

Panchmahal Steel’s unaudited standalone results were reviewed by statutory auditor CNK & Associates LLP and approved by the board on 31 October 2026. The auditor stated that nothing had come to its attention suggesting the statement did not disclose information required under applicable listing regulations or contained a material misstatement.

The work was a review under Standard on Review Engagements 2410 rather than an audit. The auditor said this form of review provides moderate assurance and is substantially less extensive than an audit under Standards on Auditing, so it did not express an audit opinion. The results were prepared under Indian Accounting Standard 34 on interim financial reporting.

Conclusion

Panchmahal Steel combined about 15% September-quarter revenue growth with a rise in profit before tax to Rs 6.64 crore and profit for the period to Rs 5.04 crore. The first-half outcome also changed from a Rs 1.37 crore loss in the prior year to a Rs 9.38 crore profit, although cash generated from operations was limited to Rs 1.72 lakh after working-capital movements and tax payments.

The filing gives no revenue target, expansion plan or scheduled corporate event after the 31 October 2026 board approval. The disclosed matters to track in subsequent results are inventories of Rs 131.80 crore, current borrowings of Rs 39.77 crore and whether operating cash flow changes from the first-half level.