Pattech Fitwell H1 revenue falls 39%, profit drops 54% year on year

For the half year ended September 30, 2026, Pattech Fitwell Tube Components Limited reported revenue from operations of Rs 21.56 crore, down 39% from Rs 35.47 crore a year earlier, while net profit fell 54% to Rs 40.46 lakh. The standalone unaudited results were approved by the board on November 3, 2026.

What changed in Pattech's half-year revenue and profit?

Pattech's revenue from operations declined by Rs 13.91 crore to Rs 21.56 crore in the half year ended 30-09-2026, from Rs 35.47 crore in the half year ended 30-09-2025. Other income increased to Rs 30.34 lakh from Rs 23.53 lakh, but total income still fell to Rs 21.87 crore from Rs 35.71 crore.

Total expenses declined to Rs 21.36 crore from Rs 34.52 crore, a reduction of Rs 13.16 crore that was smaller than the Rs 13.85 crore decline in total income. Profit before tax consequently fell to Rs 50.42 lakh from Rs 1.19 crore, while tax expense declined to Rs 9.96 lakh from Rs 30.67 lakh and net profit fell to Rs 40.46 lakh from Rs 88.22 lakh.

Pattech also reported lower results than in the half year ended 31-03-2026, when revenue from operations was Rs 24.30 crore and net profit was Rs 99.51 lakh. Revenue was lower by Rs 2.74 crore and net profit by Rs 59.05 lakh sequentially; the company describes the 31-03-2026 half-year figures as balancing figures derived from audited full-year results and the published 30-09-2025 results.

Which costs changed in Pattech's latest half year?

Material consumption, Pattech's largest expense line, fell to Rs 18.98 crore in the half year ended 30-09-2026 from Rs 32.24 crore a year earlier. The Rs 13.25 crore reduction broadly matched the reduction in revenue, and Pattech identifies Castings & Forgings as its sole reportable segment under Accounting Standard 17.

Several cost lines increased despite lower sales. Employee benefit expense rose to Rs 87.13 lakh from Rs 49.79 lakh, finance costs increased to Rs 97.50 lakh from Rs 77.20 lakh, and depreciation and amortisation rose to Rs 29.94 lakh from Rs 14.04 lakh. Other expenses increased to Rs 64.95 lakh from Rs 51.20 lakh.

Compared with the half year ended 31-03-2026, material consumption declined from Rs 21.70 crore to Rs 18.98 crore and other expenses declined from Rs 1.13 crore to Rs 64.95 lakh. Employee benefit expense increased from Rs 60.79 lakh and finance costs were marginally higher than Rs 96.55 lakh, while profit before tax fell from Rs 1.33 crore to Rs 50.42 lakh.

Pattech reported basic earnings per share of Rs 0.43 for the half year ended 30-09-2026, compared with Rs 1.08 a year earlier and Rs 1.06 in the preceding half year. The company said half-year earnings per share are not annualised; paid-up equity share capital was unchanged at Rs 9.40 crore at September 30, 2026.

What happened to Pattech's operating cash flow and cash balance?

Pattech reported net cash used in operating activities of Rs 3.96 crore for the period ended 30-09-2026. The cash-flow statement reports operating profit before working-capital changes of Rs 1.78 crore, including add-backs of Rs 97.50 lakh of finance cost and Rs 29.94 lakh of depreciation to profit before tax.

The filing attributes the movement from that operating profit to cash used in operations to changes in trade receivables, other current assets, trade payables, other current liabilities, short-term provisions and inventories. Current income tax of Rs 9.96 lakh was also deducted, while the statement was prepared under the indirect method prescribed by the applicable Accounting Standard.

Cash and cash equivalents were Rs 3.69 crore at 30-09-2026, compared with Rs 15.79 crore at 31-03-2026. Pattech reported net cash used in investing activities of Rs 3.09 crore and net cash generated from financing activities of Rs 3.03 crore, resulting in a net decrease in cash and cash equivalents of Rs 12.09 crore.

The balance sheet provides additional context for working-capital movements: trade receivables increased to Rs 14.19 crore from Rs 13.47 crore, inventories rose to Rs 13.22 crore from Rs 12.89 crore, and other current assets rose to Rs 9.45 crore from Rs 1.18 crore between 31-03-2026 and 30-09-2026.

How did Pattech's borrowings and assets change?

Pattech's total assets stood at Rs 79.45 crore at 30-09-2026, compared with Rs 82.43 crore at 31-03-2026. Tangible assets increased to Rs 34.32 crore from Rs 33.43 crore, while non-current investments increased to Rs 3.99 crore from Rs 2.08 crore over the same dates.

Long-term borrowings increased to Rs 15.90 crore from Rs 13.74 crore, while short-term borrowings declined to Rs 20.68 crore from Rs 25.91 crore. The combined balance of those two borrowing categories was Rs 36.58 crore at September 30, compared with Rs 39.65 crore at March 31, a reduction of Rs 3.07 crore.

Reserves and surplus increased to Rs 26.11 crore from Rs 25.70 crore, while money received against share warrants remained Rs 4.80 crore at both balance-sheet dates. Other current liabilities rose to Rs 60.96 lakh from Rs 17.35 lakh, and Pattech reported no pending investor complaints as of September 30, 2026.

Pattech has no subsidiaries, associates or joint ventures, according to its notes to the results, and therefore presented standalone financial statements. The limited-review report dated November 3, 2026 stated that nothing had come to the auditor's attention to suggest the unaudited statement contained a material misstatement; the review was not an audit.

How has Pattech used preferential-issue proceeds?

Pattech reported no deviation or variation in the use of Rs 12.71 crore raised through a preferential equity issue on August 13, 2025. The company reported the full Rs 12.71 crore as utilised by the quarter ended September 30, 2026, with no modification to the original allocation.

The stated objects include working-capital requirements, machinery installation, expansion of existing capacity, repayment of secured or unsecured loans, strategic partnerships or alliances, and general corporate purposes including issue expenses. Pattech said its audit committee and auditors had no comments on the equity-proceeds utilisation statement.

For the preferential warrant issue raised on August 13, 2025, Pattech reported Rs 4.80 crore raised and Rs 2.92 crore utilised by September 30, 2026. That leaves Rs 1.88 crore not recorded as utilised, although Pattech again reported no deviation or variation from the stated objects and no modification of the allocation.

Conclusion

Pattech's half-year filing shows that revenue and profit contracted alongside a negative operating cash flow position. Revenue from operations fell 39% year on year to Rs 21.56 crore, net profit declined 54% to Rs 40.46 lakh, and cash and cash equivalents decreased by Rs 12.09 crore from the March 2026 balance.

The next disclosed matter to watch is utilisation of the remaining Rs 1.88 crore of preferential warrant proceeds. Pattech's stated uses include working capital, machinery and capacity expansion, loan repayment, partnerships and general corporate purposes, while the company reported Rs 3.69 crore of cash and cash equivalents at September 30, 2026.