Paramount Cosmetics profit doubles as September revenue falls

Paramount Cosmetics (India) Limited reported profit after tax of Rs 27.15 lakh for the quarter ended 30 September 2026, more than double Rs 12.65 lakh a year earlier, despite revenue from operations falling to Rs 2.7779 crore from Rs 8.6923 crore. Higher other income and a lower expense base lifted the unaudited result.

Why did Paramount Cosmetics’ profit rise despite lower revenue?

Paramount Cosmetics’ profit rose because expenses declined more than total income and other income increased during the September 2026 quarter. Revenue from operations fell by Rs 5.9144 crore year on year, while other income rose to Rs 78.40 lakh from Rs 22.93 lakh. Total income therefore declined to Rs 3.5619 crore from Rs 8.9216 crore, a smaller reduction than the fall in operating revenue alone.

Total expenses fell to Rs 3.1334 crore in the quarter ended 30 September 2026 from Rs 8.6932 crore in the corresponding quarter a year earlier. That left profit before tax of Rs 42.85 lakh, compared with Rs 22.84 lakh. Deferred tax expense was Rs 21.28 lakh and the prior-period tax credit was Rs 5.58 lakh, resulting in profit after tax of Rs 27.15 lakh.

Which costs changed in Paramount Cosmetics’ September quarter?

Paramount Cosmetics’ purchase of stock-in-trade declined to Rs 72.62 lakh from Rs 7.3244 crore in the September 2025 quarter, accounting for a substantial part of the lower cost base. This was partly offset by a Rs 1.3385 crore expense from changes in inventories of finished goods, work in progress and stock-in-trade, versus an inventory-related credit of Rs 38.33 lakh a year earlier.

Finance cost declined to Rs 3.56 lakh from Rs 29.71 lakh, while depreciation and amortisation expense fell to Rs 11,000 from Rs 11.62 lakh. Other expenses reduced to Rs 48.20 lakh from Rs 74.69 lakh, and employee-benefit expense was Rs 55 lakh compared with Rs 59.19 lakh. These movements contributed to total expenses falling by Rs 5.5598 crore year on year.

Paramount Cosmetics also reported total comprehensive income of Rs 27.75 lakh for the September 2026 quarter, against Rs 13.20 lakh in the prior-year quarter. Other comprehensive income, net of tax, was Rs 60,000, compared with Rs 55,000. Paid-up equity share capital was unchanged at Rs 4.855 crore, while annualised basic and diluted earnings per share were Rs 2.24, versus Rs 1.04 a year earlier.

How did Paramount Cosmetics perform in the first half?

Paramount Cosmetics reported profit after tax of Rs 39.20 lakh for the half year ended 30 September 2026, compared with Rs 6.60 lakh in the corresponding previous-year half. Profit before tax increased to Rs 49.30 lakh from Rs 23.90 lakh, even as revenue from operations declined to Rs 6.1402 crore from Rs 13.3693 crore.

Other income for the six-month period increased to Rs 1.3798 crore from Rs 98 lakh, while total expenses fell to Rs 7.027 crore from Rs 13.7102 crore. Total income was Rs 7.52 crore, compared with Rs 13.9492 crore a year earlier. Annualised basic and diluted earnings per share for the half year were Rs 1.61, against Rs 0.27 in the comparable period.

The September-quarter outcome was also higher than the immediately preceding June 2026 quarter. Profit after tax rose from Rs 12.05 lakh in June to Rs 27.15 lakh in September, while profit before tax rose from Rs 6.45 lakh to Rs 42.85 lakh. Revenue from operations, however, declined sequentially from Rs 3.3623 crore to Rs 2.7779 crore.

What did Paramount Cosmetics disclose about the factory sale and cash flow?

Paramount Cosmetics said it sold its factory, including land, building, plant and machinery, office equipment, furniture and fixtures, computers, software and other miscellaneous assets, to related party Paramount Kumkum Private Limited on 30 June 2026. The aggregate consideration was Rs 3.9275 crore, and shareholders had approved the transaction through a special resolution at an extraordinary general meeting on 13 February 2026.

The company said registration of the land and building, along with related formalities, remained ongoing as at 30 September 2026. Its half-year cash-flow statement recorded Rs 4.5073 crore from sale of fixed assets and a net investing cash inflow of Rs 5.7719 crore. The disclosed asset-sale cash-flow figure differs from the stated aggregate consideration, while the filing does not explain the difference.

Net cash used in operating activities was Rs 3.9933 crore for the half year ended 30 September 2026, compared with net operating cash generated of Rs 10.7667 crore for the year ended 31 March 2026. Net cash used in financing activities was Rs 1.9238 crore. Cash and cash equivalents consequently fell to Rs 10.13 lakh at 30 September 2026 from Rs 24.65 lakh at the beginning of the financial year.

What is the reporting scope of Paramount Cosmetics’ results?

Paramount Cosmetics said Ind AS 108, the Indian Accounting Standard covering segment reporting, was not applicable because it operates in a single business segment. The company also said it has no subsidiary, associate or joint venture and therefore prepared standalone results for the quarter and six months ended 30 September 2026.

The Audit Committee reviewed, and the Board approved, the unaudited results on 5 November 2026. The filing states that the financial statements were prepared under Regulation 33 of the Securities and Exchange Board of India listing regulations, and the auditor conducted a limited review rather than a full audit. Previous-period figures were regrouped or reclassified where necessary for comparability.

Conclusion

Paramount Cosmetics’ September result combined a sharp fall in operating revenue with lower stock purchases, lower finance cost and higher other income. The result was a Rs 42.85 lakh profit before tax and Rs 27.15 lakh profit after tax, while the half-year profit after tax reached Rs 39.20 lakh despite first-half revenue from operations declining by Rs 7.2291 crore year on year.

The next disclosed matter to watch is the completion of registration and other formalities for the factory assets sold on 30 June 2026 to Paramount Kumkum Private Limited for Rs 3.9275 crore. Investors can also track whether the Rs 10.13 lakh closing cash balance and the Rs 3.9933 crore operating cash outflow change in subsequent results.