Platinum Industries Q2 profit falls 31% as costs outpace sales

Platinum Industries Limited reported consolidated profit of Rs 7.60 crore for the quarter ended September 30, 2026, down 30.8% from Rs 10.98 crore a year earlier, as total expenses rose 30.2% to Rs 113.52 crore and outpaced a 23.3% rise in revenue from operations to Rs 121.27 crore.

Why did Platinum Industries’ Q2 profit fall despite higher revenue?

Platinum Industries’ Q2 profit fell because expense growth exceeded revenue growth in the quarter ended September 30, 2026. Total expenses increased to Rs 113.52 crore from Rs 87.17 crore a year earlier, while revenue from operations rose to Rs 121.27 crore from Rs 98.38 crore, reducing profit before tax to Rs 10.52 crore from Rs 14.78 crore.

The sequential comparison also shows costs rising faster than sales. Revenue increased 11.3% from Rs 108.94 crore in the quarter ended June 30, 2026, but total expenses rose 16.1% from Rs 97.80 crore. Profit for the period consequently declined 31.7% from Rs 11.13 crore, while basic earnings per share, not annualised, decreased to Rs 1.40 from Rs 2.03.

Which costs increased most for Platinum Industries in Q2?

Platinum Industries’ cost of materials consumed increased by Rs 24.08 crore year on year to Rs 76.64 crore, the largest disclosed increase among quarterly expense lines. Purchases of stock-in-trade rose by Rs 1.96 crore to Rs 15.00 crore, employee benefits expense increased by Rs 97.40 lakh to Rs 7.31 crore, and other expenses rose by Rs 5.20 crore to Rs 14.85 crore.

Depreciation and amortisation increased by Rs 77.80 lakh to Rs 2.19 crore in the September quarter. Changes in inventories of finished goods, stock-in-trade and work-in-progress were a credit of Rs 3.35 crore, compared with an expense of Rs 3.52 crore a year earlier, partly offsetting the higher costs. Finance costs declined to Rs 89.60 lakh from Rs 96.70 lakh.

Total income rose 21.1% to Rs 124.04 crore, less than the growth in total expenses, while other income declined 32.1% to Rs 2.78 crore from Rs 4.09 crore. Tax expense fell to Rs 2.93 crore from Rs 3.80 crore, but this lower charge did not prevent profit for the period from declining by Rs 3.38 crore.

How did Platinum Industries perform in the half year ended September 2026?

Platinum Industries reported consolidated profit of Rs 18.73 crore for the half year ended September 30, 2026, down 22.2% from Rs 24.06 crore in the corresponding prior-year half. Revenue from operations increased 7.7% to Rs 230.20 crore, while total expenses increased 11.6% to Rs 211.32 crore.

Profit before tax for the six months declined to Rs 25.48 crore from Rs 32.60 crore. Material consumption increased to Rs 152.53 crore from Rs 131.33 crore, employee benefits expense rose to Rs 14.22 crore from Rs 11.21 crore, depreciation and amortisation increased to Rs 4.01 crore from Rs 2.70 crore, and other expenses rose to Rs 25.30 crore from Rs 21.53 crore.

Cash flow from operations improved in the six-month period despite the lower profit. Net cash from operating activities was Rs 23.48 crore, compared with net cash used in operating activities of Rs 7.59 crore in the prior-year half, after cash generated from operations reached Rs 31.62 crore against an outflow of Rs 1.30 crore. Inventories nevertheless increased by Rs 23.79 crore during the period.

What changed in Platinum Industries’ balance sheet and cash position?

Platinum Industries’ total assets were Rs 569.26 crore at September 30, 2026, compared with Rs 549.12 crore at March 31, 2026. Property, plant and equipment rose to Rs 125.52 crore from Rs 81.05 crore, while capital work-in-progress declined to Rs 22.25 crore from Rs 45.14 crore.

Cash and cash equivalents declined by Rs 25.72 crore over the half year to Rs 37.77 crore. Investing activities used Rs 43.71 crore, including Rs 54.88 crore spent on property, plant and equipment and capital work-in-progress, while financing activities used Rs 5.48 crore. Net cash from operating activities of Rs 23.48 crore was lower than the investing cash outflow.

Total equity increased to Rs 470.47 crore from Rs 455.09 crore. Non-current borrowings were Rs 1.98 crore and current borrowings were Rs 40.30 lakh at September 30, 2026. Inventories rose to Rs 91.03 crore from Rs 67.24 crore, while trade receivables declined to Rs 112.94 crore from Rs 124.44 crore.

What is the auditor’s qualification on Platinum Industries’ results?

Platinum Industries’ consolidated financial results carry a qualified conclusion from PKF Sridhar & Santhanam LLP over an insurance claim receivable of Rs 9.82 crore recognised by M/s. Platinum Polymers and Additives. The receivable relates to a fire on July 7, 2025, at the partnership firm’s Palghar factory that damaged certain property, plant and equipment and inventories.

The subsidiary recognised a loss of Rs 10.34 crore, excluding goods and services tax, and an insurance receivable of Rs 9.82 crore based on management’s estimate. The disclosure records a resulting net exceptional loss of Rs 51.70 lakh. The auditor said the insurance survey and associated procedures remained in progress as at September 30, 2026.

The auditor said it believed the receivable should be recognised only after insurers acknowledge liability, and it could not determine whether an adjustment to the recorded amount was necessary without insurer confirmation. Management said it expects to realise the full claim based on the policy terms and its assessment, while noting that final confirmation and settlement remain pending. Operations at the affected subsidiary have been partially restored.

Conclusion

Platinum Industries increased consolidated revenue in the September 2026 quarter and six-month period, but materials, employee expenses, depreciation and other expenses rose more quickly. That cost pattern reduced Q2 profit by 30.8% to Rs 7.60 crore and half-year profit by 22.2% to Rs 18.73 crore, even as operating cash flow turned positive at Rs 23.48 crore.

The next disclosed items to watch are the deployment of Rs 27.58 crore of unutilised net initial public offering proceeds and the outcome of the insurance process. Of that unutilised amount at September 30, 2026, Rs 24.48 crore was earmarked for Platinum Stabilizers Egypt LLC’s PVC stabilizers facility, Rs 1.54 crore for the Palghar PVC stabilizers facility, and Rs 1.56 crore for working-capital requirements.