Pashupati Cotspin Q2 profit rises 26% year-on-year as revenue falls

Pashupati Cotspin Limited reported standalone net profit of Rs 5.09 crore for the quarter ended September 30, 2026, up 26% year-on-year, although revenue from operations fell 30% to Rs 169.46 crore. Total expenses declined by Rs 73.04 crore from a year earlier, exceeding the Rs 72.13 crore reduction in total income.

How did Pashupati Cotspin perform in the September 2026 quarter?

Pashupati Cotspin recorded standalone net profit of Rs 5.09 crore in the quarter ended September 30, 2026, compared with Rs 4.04 crore in the quarter ended September 30, 2025. Profit before tax increased to Rs 6.77 crore from Rs 5.86 crore, while total comprehensive income rose to Rs 5.13 crore from Rs 3.94 crore.

Revenue from operations declined to Rs 169.46 crore from Rs 241.84 crore a year earlier. Other income increased to Rs 2.23 crore from Rs 1.98 crore, taking total income to Rs 171.70 crore, compared with Rs 243.83 crore in the corresponding quarter.

The September-quarter standalone results were unaudited, reviewed by the audit committee and approved by the board on November 6, 2026. The statutory auditors performed a limited review under Regulation 33 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

Why did Pashupati Cotspin's profit increase despite lower revenue?

Pashupati Cotspin's profit increased because total expenses fell by Rs 73.04 crore, more than the Rs 72.13 crore decline in total income. Expenses were Rs 164.93 crore in the September 2026 quarter, versus Rs 237.97 crore a year earlier, resulting in a higher reported profit before tax.

The largest disclosed cost movement was purchases of stock-in-trade, which fell to Rs 72.10 crore from Rs 143.92 crore in the September 2025 quarter. Cost of material consumed was Rs 70.17 crore, compared with Rs 69.74 crore, showing a substantial shift between the two main cost lines during the quarter.

Changes in inventories of finished goods, stock-in-trade and work-in-progress represented an expense of Rs 4.84 crore, against Rs 6.97 crore a year earlier. Employee benefits expense declined to Rs 4.65 crore from Rs 4.77 crore, while other expenses reduced to Rs 7.76 crore from Rs 7.92 crore.

Finance costs rose to Rs 3.17 crore from Rs 2.41 crore, partly offsetting reductions in other expenses. Depreciation and amortisation were Rs 2.20 crore in both the September 2026 and September 2025 quarters, leaving the lower stock-in-trade purchases as the largest disclosed cost change.

How did Pashupati Cotspin compare with the June quarter and first half?

Pashupati Cotspin's September-quarter net profit was lower than the June-quarter result despite higher quarterly revenue. Net profit declined to Rs 5.09 crore from Rs 7.24 crore in the quarter ended June 30, 2026, while revenue from operations increased from Rs 122.10 crore to Rs 169.46 crore.

Profit before tax fell to Rs 6.77 crore from Rs 9.54 crore sequentially, while total income rose to Rs 171.70 crore from Rs 124.94 crore. Based on the reported figures, net profit represented about 3.0% of total income in the September quarter, compared with about 5.8% in the June quarter.

For the half year ended September 30, 2026, net profit rose 103% to Rs 12.34 crore from Rs 6.07 crore in the corresponding period of 2025. Profit before tax increased to Rs 16.31 crore from Rs 8.63 crore, although half-year revenue from operations declined to Rs 291.57 crore from Rs 347.93 crore.

What did tax, earnings per share and seasonality show?

Pashupati Cotspin reported total tax expense of Rs 1.67 crore for the September 2026 quarter, compared with Rs 1.81 crore a year earlier. Current tax increased to Rs 1.63 crore from Rs 1.52 crore, while deferred tax expense declined to Rs 3.95 lakh from Rs 29.48 lakh.

Basic and diluted earnings per share were Rs 0.32 for the September 2026 quarter, against Rs 0.26 a year earlier and Rs 0.46 in the June 2026 quarter. These figures are not annualised, and Pashupati Cotspin said comparative earnings per share had been restated following the April 17, 2026 subdivision of equity shares from a Rs 10 face value to Re 1.

Paid-up equity share capital was Rs 15.78 crore at September 30, 2026, unchanged from June 30, 2026 and September 30, 2025. Other comprehensive income was Rs 3.60 lakh, compared with an other comprehensive expense of Rs 10.01 lakh a year earlier.

Pashupati Cotspin is primarily engaged in cotton ginning and spinning and has presented its operations as a single segment. The company said cotton ginning is seasonal and normally begins in October, a timing factor it said makes quarterly results not comparable.

Conclusion

Pashupati Cotspin's September 2026 standalone result combined a 30% revenue reduction with a 31% decline in total expenses, producing a 26% increase in net profit to Rs 5.09 crore. The year-on-year gain coincided with lower purchases of stock-in-trade, while the sequential comparison showed net profit below the Rs 7.24 crore reported for the June 2026 quarter.

The next disclosed events are the interim dividend record date of November 23, 2026 and payment on or before December 5, 2026. Pashupati Cotspin also has a proposed bonus issue of three Re 1 equity shares for every two existing Re 1 shares, recommended on October 3, 2026 and subject to shareholder and required regulatory approvals.