Prakash Industries Q2 revenue rises 24% as tax limits profit

Prakash Industries Limited reported revenue from operations of Rs 896.12 crore for the quarter ended September 30, 2026, up 24% from Rs 723.16 crore a year earlier, while profit after tax rose 6% to Rs 65.37 crore after a Rs 18.24 crore current tax charge.

How did Prakash Industries perform in the September 2026 quarter?

Prakash Industries reported total income of Rs 903.32 crore for the quarter ended September 30, 2026, compared with Rs 729.04 crore in the corresponding quarter a year earlier. Revenue from operations was Rs 896.12 crore, while other income was Rs 7.20 crore, compared with Rs 5.88 crore in the September 2025 quarter.

Profit before tax increased 36% to Rs 83.61 crore from Rs 61.57 crore, exceeding the 24% rise in total income. Profit after tax rose to Rs 65.37 crore from Rs 61.57 crore, and basic as well as diluted earnings per share increased to Rs 3.65 from Rs 3.44. Prakash Industries reported no exceptional items in either quarter.

Why did Prakash Industries' profit grow slower than revenue?

Prakash Industries' profit after tax grew slower than revenue because it recorded a Rs 18.24 crore current tax expense in the September 2026 quarter, whereas profit before tax and profit after tax were both Rs 61.57 crore in the prior-year quarter. The company said it adopted the new tax regime under the Income Tax Act, 2025, effective April 1, 2026, and can no longer claim the tax exemption under Section 80-IA.

The company said current tax and deferred tax were calculated following its move to the new regime. It also disclosed that deferred tax liabilities of Rs 5 lakh for the quarter and Rs 1.70 crore for the half year ended September 30, 2026 were adjusted against the securities premium account under a court order.

Expenses rose 23% year on year to Rs 819.71 crore, just below the 24% increase in total income. Material consumed increased to Rs 496.03 crore from Rs 415.20 crore, other expenses rose to Rs 179.07 crore from Rs 119.76 crore, and finance costs increased to Rs 21.92 crore from Rs 10.34 crore.

How did Prakash Industries' Q2 compare with the June 2026 quarter?

Prakash Industries reported lower revenue and profit in the September 2026 quarter than in the June 2026 quarter. Revenue from operations declined 13% from Rs 1,032 crore in the June quarter to Rs 896.12 crore, while profit before tax decreased from Rs 92.74 crore to Rs 83.61 crore and profit after tax fell from Rs 71.27 crore to Rs 65.37 crore.

The lower sequential revenue was accompanied by lower costs. Total expenses fell to Rs 819.71 crore from Rs 945.94 crore, material consumed decreased to Rs 496.03 crore from Rs 599.04 crore, and other expenses reduced to Rs 179.07 crore from Rs 212.24 crore. Current tax also declined from Rs 21.47 crore in the June quarter to Rs 18.24 crore.

Basic and diluted earnings per share were Rs 3.65 in the September quarter, compared with Rs 3.98 in the preceding quarter. Other income increased to Rs 7.20 crore from Rs 6.68 crore, but this did not offset the Rs 136 crore sequential reduction in revenue from operations.

What do Prakash Industries' first-half results show?

Prakash Industries generated revenue from operations of Rs 1,928.12 crore in the half year ended September 30, 2026, up 10% from Rs 1,760.24 crore in the comparable 2025 period. Total income rose to Rs 1,942 crore from Rs 1,771.94 crore, while profit before tax increased 15% to Rs 176.35 crore from Rs 152.97 crore.

Profit after tax declined 11% to Rs 136.64 crore from Rs 152.97 crore for the half year, following a Rs 39.71 crore current tax expense. Basic and diluted earnings per share were Rs 7.63, compared with Rs 8.54 in the prior-year half. Total comprehensive income was Rs 132.33 crore, against Rs 148.79 crore, after a Rs 4.31 crore remeasurement loss on defined-benefit plans.

Net cash from operating activities increased to Rs 213.71 crore from Rs 201.21 crore in the half year. Purchases of fixed assets, including capital work-in-progress and capital advances, were Rs 158.06 crore, compared with Rs 133.59 crore a year earlier, while net cash used in investing activities was Rs 125.90 crore.

What changed in Prakash Industries' financial position?

Prakash Industries' total assets increased to Rs 5,033.24 crore at September 30, 2026, from Rs 4,752.65 crore at March 31, 2026. Current assets rose to Rs 1,469.28 crore from Rs 1,175.60 crore, including cash and cash equivalents of Rs 152.06 crore, up from Rs 14.39 crore.

Capital work-in-progress rose to Rs 348.92 crore at September 30 from Rs 196.87 crore at March 31, while property, plant and equipment decreased to Rs 2,856.89 crore from Rs 2,971.94 crore. Bank balances other than cash equivalents increased to Rs 250.81 crore from Rs 181.07 crore over the same period.

Total equity increased to Rs 3,686.77 crore from Rs 3,588.37 crore. Non-current borrowings declined to Rs 262.68 crore from Rs 275.57 crore, while current borrowings rose to Rs 334.89 crore from Rs 238.04 crore. During the half year, the cash-flow statement showed borrowing proceeds of Rs 142.80 crore and repayments of Rs 58.89 crore.

Conclusion

Prakash Industries converted a 24% increase in September-quarter revenue into a 36% increase in profit before tax, but its Rs 18.24 crore current tax expense restricted growth in profit after tax to 6%. For the half year, revenue and pre-tax profit increased from the prior-year period, while profit after tax declined to Rs 136.64 crore from Rs 152.97 crore.

The next reported quarter will indicate whether revenue recovers from the Rs 1,032 crore recorded in the June 2026 quarter and how the tax regime continues to affect earnings. The disclosed Rs 348.92 crore capital work-in-progress and Rs 158.06 crore of first-half fixed-asset and capital work-in-progress purchases are also figures to watch in subsequent financial statements.