Polyspin Exports Q2 profit falls 12% as revenue rises 11%

Polyspin Exports Limited reported standalone net profit of Rs 1.45 crore for the quarter ended September 30, 2026, down 12% from a year earlier, while revenue from operations rose 11% to Rs 65.58 crore. Higher material and other expenses outpaced sales growth, although profit improved from Rs 87 lakh in the preceding quarter.

How did Polyspin Exports perform in Q2 FY27?

Polyspin reported revenue from operations of Rs 65.58 crore in Q2 FY27, compared with Rs 58.87 crore in Q2 FY26 and Rs 53.14 crore in Q1 FY27. Total income rose to Rs 67.72 crore from Rs 59.65 crore a year earlier, helped by other income of Rs 2.14 crore against Rs 77.60 lakh.

Net profit after tax was Rs 1.45 crore, compared with Rs 1.65 crore in the year-earlier quarter and Rs 87 lakh in Q1 FY27. Basic and diluted earnings per share were Rs 1.45, versus Rs 1.65 a year earlier and Rs 0.87 in the preceding quarter; the filing states that quarterly earnings per share are not annualised.

The Audit Committee reviewed the results on November 10, 2026, and the board approved them on November 11, 2026. The filing presents standalone unaudited results for the quarter and six months ended September 30, 2026, prepared under Indian Accounting Standards, or Ind AS.

Why did Polyspin Exports’ profit fall despite higher sales?

Polyspin’s total expenses increased to Rs 65.77 crore in Q2 FY27 from Rs 57.84 crore in Q2 FY26, while total income increased to Rs 67.72 crore from Rs 59.65 crore. Cost of materials consumed rose to Rs 39.54 crore from Rs 31.58 crore, and other expenses increased to Rs 14.26 crore from Rs 10.50 crore.

Some cost lines declined from the prior-year quarter: finance cost fell to Rs 97.80 lakh from Rs 1.64 crore, and power and fuel expense declined to Rs 1.65 crore from Rs 2.07 crore. Employee benefits were Rs 10.27 crore compared with Rs 10.23 crore, while depreciation and amortisation rose to Rs 1.21 crore from Rs 1.18 crore.

Profit before tax nevertheless increased to Rs 1.95 crore from Rs 1.81 crore, supported by the increase in other income. Tax expense rose to Rs 49.67 lakh from Rs 15.94 lakh, including current tax of Rs 58.37 lakh against Rs 12.46 lakh, resulting in a lower reported profit after tax.

What do Polyspin Exports’ first-half FY27 results show?

Polyspin reported revenue from operations of Rs 118.72 crore for the six months ended September 30, 2026, compared with Rs 116.23 crore in the corresponding period a year earlier. Net profit after tax fell to Rs 2.32 crore from Rs 2.79 crore, while profit before tax declined to Rs 3.10 crore from Rs 3.39 crore.

Total income for the half year rose to Rs 122.23 crore from Rs 117.84 crore, while total expenses rose to Rs 119.13 crore from Rs 114.45 crore. Other expenses increased to Rs 25.22 crore from Rs 21.42 crore, whereas finance cost declined to Rs 2.33 crore from Rs 3.12 crore and employee benefits fell to Rs 19.73 crore from Rs 20.60 crore.

Total comprehensive income was Rs 1.54 crore for the six months, compared with Rs 2.93 crore a year earlier. This included other comprehensive loss of Rs 78.47 lakh, against other comprehensive income of Rs 14.07 lakh in the prior-year period.

How did Polyspin Exports’ balance sheet and cash flow change?

Polyspin’s total assets rose to Rs 174.39 crore on September 30, 2026, from Rs 152.78 crore on March 31, 2026. Inventories increased to Rs 49.69 crore from Rs 37.54 crore and trade receivables rose to Rs 40.16 crore from Rs 34.91 crore over the six-month period.

Net worth increased to Rs 61.13 crore from Rs 59.42 crore. Non-current borrowings declined to Rs 16.58 crore from Rs 21.83 crore, but current borrowings increased to Rs 68.53 crore from Rs 49.04 crore, taking total borrowings to Rs 85.10 crore from Rs 70.87 crore.

Net cash used in operating activities was Rs 7.02 crore for the six months ended September 30, 2026. The cash-flow statement records a Rs 12.15 crore increase in inventories and a Rs 5.25 crore increase in trade receivables; financing activities generated Rs 12.47 crore, including Rs 16.76 crore from working-capital borrowings.

What continuing-operations and labour-cost matters did Polyspin Exports disclose?

Polyspin said the reported figures relate entirely to continuing operations of flexible intermediate bulk containers, or FIBC. It discontinued the textile division and completely disposed of its assets during the second quarter of FY25, so it said separate segment reporting was not required under Ind AS 108.

The filing also says Tamil Nadu had not enforced rules on the minimum floor wage as of November 11, 2026. Management said it did not expect material changes to existing employee-cost structures requiring a provision for the year under review, while noting that changes would be made if necessary after state rules are notified.

Conclusion

Polyspin’s Q2 FY27 figures show that higher sales did not result in higher year-on-year net profit: revenue increased by Rs 6.71 crore, while material costs increased by Rs 7.96 crore and other expenses by Rs 3.76 crore. Sequentially, net profit rose from Rs 87 lakh in Q1 FY27 to Rs 1.45 crore in Q2 FY27.

The next results will show whether inventories of Rs 49.69 crore and receivables of Rs 40.16 crore convert into operating cash after the first-half operating cash outflow of Rs 7.02 crore. Tamil Nadu’s notification of minimum-floor-wage rules remains the disclosed unresolved matter for employee-cost structures.