PG Foils reports Rs 25.74 crore first-half profit increase

PG Foils Limited reported unaudited net profit of Rs 25.74 crore for the half year ended September 30, 2026, compared with Rs 1.27 crore a year earlier, as total income rose 48% to Rs 256.78 crore and profit before tax reached Rs 32.13 crore.

How did PG Foils perform in the first half?

PG Foils recorded a Rs 25.74 crore net profit in the half year ended September 30, 2026, up from Rs 1.27 crore in the corresponding half of 2025. Profit before tax rose to Rs 32.13 crore from Rs 4.27 crore, while total comprehensive income was Rs 25.74 crore, compared with Rs 1.27 crore a year earlier after a Rs 3,000 other comprehensive loss in the earlier period.

Income from operations increased to Rs 231.89 crore from Rs 155.34 crore in the prior-year half, a rise of about 49%. Other income rose to Rs 24.88 crore from Rs 18.28 crore, taking total income to Rs 256.78 crore from Rs 173.62 crore. Total expenses rose to Rs 224.64 crore from Rs 169.35 crore, producing the Rs 32.13 crore pre-tax result.

The half-year improvement also contrasts with the Rs 8.24 crore net loss reported for the year ended March 31, 2026. Basic and diluted earnings per share for the September 2026 half were Rs 21.82, compared with Rs 1.07 for the half year ended September 2025; PG Foils stated that the earnings-per-share figures are not annualised.

What changed in PG Foils' income and costs?

PG Foils' higher half-year income from operations was accompanied by an increase in material consumption to Rs 175.34 crore from Rs 119.08 crore. Purchases of traded goods also increased to Rs 32.87 crore from Rs 12.66 crore. These two expense lines rose alongside the Rs 76.55 crore increase in income from operations between the two half-year periods.

Inventory changes were a major difference between the periods: this line was negative Rs 18.74 crore in the half year ended September 2026, compared with a positive Rs 10.57 crore expense in the previous-year half. Employee benefits expense was Rs 17.34 crore against Rs 13.60 crore, finance costs were Rs 2.72 crore against Rs 1.51 crore, and other expenses were Rs 12.37 crore against Rs 8.90 crore.

Tax expense rose to Rs 6.39 crore in the 2026 half from Rs 3.01 crore a year earlier, comprising Rs 5.50 crore of current tax and Rs 89.16 lakh of deferred tax. The prior-year tax charge comprised Rs 2 crore of current tax and Rs 1.01 crore of deferred tax. No exceptional item was recorded in either half-year period, so the reported pre-tax comparison does not include an exceptional gain or charge.

Why did PG Foils' September-quarter profit fall sequentially?

PG Foils' net profit declined sequentially to Rs 11.40 crore in the quarter ended September 30, 2026, from Rs 14.34 crore in the quarter ended June 30, 2026. Income from operations fell to Rs 106.31 crore from Rs 125.58 crore, while total income declined to Rs 112.73 crore from Rs 144.04 crore across the two unaudited quarters.

The September-quarter result remained ahead of the year-earlier comparison, when PG Foils reported a Rs 8.03 crore net loss on total income of Rs 71.90 crore for the quarter ended September 30, 2025. In the latest quarter, profit before tax was Rs 13.41 crore, compared with a pre-tax loss of Rs 8.03 crore a year earlier. Basic and diluted earnings per share were Rs 9.66, against a loss per share of Rs 6.82.

Sequential costs moved differently across individual lines. Material consumption was Rs 91.87 crore in the September quarter, higher than Rs 83.47 crore in June, while purchases of traded goods increased to Rs 27.67 crore from Rs 5.21 crore. However, inventory changes were negative Rs 33.32 crore in September after a positive Rs 14.58 crore expense in June, and employee benefits expense declined to Rs 3.63 crore from Rs 13.71 crore.

The tax charge was Rs 2.01 crore in the September quarter, below Rs 4.38 crore in the June quarter. Other income also fell to Rs 6.42 crore from Rs 18.46 crore over the same quarters. As a result, September-quarter profit before tax of Rs 13.41 crore was below June-quarter profit before tax of Rs 18.72 crore, despite total expenses falling to Rs 99.32 crore from Rs 125.32 crore.

What does PG Foils disclose about its operations and review?

PG Foils identifies its operating segment as the manufacture or production of aluminium foil under Indian Accounting Standard 108, or Ind AS 108. The company said wind-mill power is mainly for captive use, and separately stated that power generated by wind mills and solar facilities is mainly for captive use; it did not provide segment revenue, output volumes or separate power-income figures in the results.

The results are standalone and unaudited for the quarter and half year ended September 30, 2026. PG Foils said its audit committee reviewed and recommended the results, which the board approved and took on record on November 14, 2026. Paid-up equity share capital was Rs 11.80 crore in all reported income-statement periods, based on shares with a face value of Rs 10 each.

Jain P.C. & Associates issued a limited review report dated November 14, 2026, rather than an audit opinion. The statutory auditor said nothing had come to its attention to indicate that the unaudited statement was not prepared in accordance with applicable Indian Accounting Standards or that it contained a material misstatement; it also noted that a review provides less assurance than an audit.

Conclusion

PG Foils' first-half result moved from Rs 1.27 crore of net profit in the half year ended September 2025 to Rs 25.74 crore in the corresponding 2026 period. Total income increased by Rs 83.16 crore to Rs 256.78 crore, while the gap between total income and total expenses widened to Rs 32.13 crore before tax from Rs 4.27 crore a year earlier.

What to watch in subsequent disclosures is whether PG Foils provides the segment revenue, output volumes or separate power-income figures that were absent from the September 30, 2026 results. The filing identifies aluminium foil manufacturing as its single operating segment and says wind-mill and solar power are mainly for captive use, but does not disclose a target, capacity plan or scheduled operational milestone.