Pramara Promotions H1 profit halves as revenue declines

Pramara Promotions Limited reported standalone profit after tax of Rs 3.03 crore for the half year (H1) ended September 30, 2026, down 50% from Rs 6.03 crore a year earlier, as revenue from operations declined 6% to Rs 48.76 crore and finance costs increased 70% to Rs 4.74 crore.

How did Pramara Promotions perform in the half year ended September 2026?

Pramara Promotions reported a standalone profit before tax of Rs 3.02 crore for the half year ended September 30, 2026, compared with Rs 6.03 crore in the corresponding half year ended September 30, 2025. Revenue from operations decreased by Rs 3.09 crore to Rs 48.76 crore from Rs 51.85 crore, while total income declined to Rs 50.30 crore from Rs 53.01 crore.

Profit after tax was Rs 3.03 crore, compared with Rs 6.03 crore a year earlier. The difference between the current-period profit before tax and profit after tax reflects a deferred-tax benefit of Rs 0.01 crore. Basic and diluted earnings per share were Rs 2.17 for the September 2026 half year, against Rs 4.32 in the corresponding 2025 period.

Pramara Promotions’ standalone business consists of manufacturing plastic products and supplying promotional products. Other income increased by Rs 0.38 crore year on year to Rs 1.54 crore, but that gain did not offset the Rs 3.09 crore decline in operating revenue. Total expenses rose to Rs 47.28 crore from Rs 46.98 crore despite the lower sales figure.

What costs affected Pramara Promotions’ half-year profit?

Pramara Promotions recorded its largest identified year-on-year increase in raw-material consumption, which rose by Rs 6.95 crore to Rs 39.06 crore from Rs 32.11 crore. Finance costs increased by Rs 1.95 crore to Rs 4.74 crore from Rs 2.79 crore, while depreciation and amortisation expense doubled to Rs 0.92 crore from Rs 0.46 crore.

Employee-benefit expense increased to Rs 2.67 crore from Rs 2.30 crore, whereas other expenses declined to Rs 2.14 crore from Rs 2.39 crore. These movements occurred as revenue from operations fell to Rs 48.76 crore, leaving profit before tax at Rs 3.02 crore rather than Rs 6.03 crore in the comparable period.

Inventory changes reduced expenses by Rs 2.24 crore in the September 2026 half year, compared with an expense of Rs 6.93 crore in the September 2025 half year. This Rs 9.17 crore change partly offset the increases in raw-material, finance, employee and depreciation expenses, but total expenses still increased by Rs 0.30 crore year on year.

The filing does not provide a product-level revenue split between plastic-product manufacturing and promotional-product supply. It therefore identifies the changes in reported expense lines, including the 70% rise in finance costs, but does not assign the revenue decline of Rs 3.09 crore to a particular product, customer group or geography.

How did Pramara Promotions’ borrowings and working-capital balances change?

Pramara Promotions’ standalone short-term borrowings rose to Rs 27.92 crore at September 30, 2026 from Rs 14.26 crore at March 31, 2026. Long-term borrowings increased to Rs 28.80 crore from Rs 26.44 crore. Combined reported borrowings therefore rose by Rs 16.02 crore over the six months to Rs 56.72 crore.

Short-term loans and advances increased to Rs 66.30 crore from Rs 50.72 crore, a rise of Rs 15.58 crore. Inventories increased by Rs 2.24 crore to Rs 32.83 crore, while trade receivables decreased by Rs 5.61 crore to Rs 51.13 crore over the same balance-sheet comparison.

Property, plant and equipment increased to Rs 14.20 crore at September 30 from Rs 8.15 crore at March 31. Other non-current assets rose to Rs 24.76 crore from Rs 18.71 crore, while cash and cash equivalents increased to Rs 6.21 crore from Rs 6.06 crore. The balance sheet also shows reserves and surplus of Rs 107.61 crore, compared with Rs 104.58 crore at March 31.

What do Pramara Promotions’ cash flows show about funding during the period?

Pramara Promotions reported net cash used in operating activities of Rs 5.58 crore for the period. A Rs 5.61 crore cash release from trade receivables was outweighed by Rs 17.07 crore used in other assets and Rs 2.24 crore used in inventories, resulting in cash used in operations of Rs 5.58 crore.

Investing activities used Rs 5.56 crore, including Rs 6.96 crore invested in property, plant and equipment. Interest on fixed deposits contributed Rs 1.41 crore within investing cash flows. The increase in property, plant and equipment to Rs 14.20 crore on the September balance sheet is consistent with the investment disclosed in the cash-flow statement.

Financing activities generated Rs 11.28 crore of cash, comprising borrowing proceeds of Rs 16.02 crore less finance-cost payments of Rs 4.74 crore. The financing inflow exceeded the combined operating and investing cash outflow of Rs 11.14 crore, and the statement reports a net increase in cash and cash equivalents of Rs 0.15 crore.

At September 30, Pramara Promotions reported cash and cash equivalents of Rs 6.21 crore, including Rs 5.96 crore in current or escrow bank accounts and Rs 0.25 crore of cash on hand. The filing defines cash equivalents as highly liquid short-term investments with original maturities of three months or less that can be readily converted into known cash amounts.

Conclusion

Pramara Promotions’ standalone half-year results combine a 6% decline in revenue from operations with a 50% decline in both profit before tax and profit after tax. Higher raw-material consumption, finance costs and depreciation coincided with the lower revenue, while the favourable Rs 2.24 crore inventory movement and higher other income did not prevent total expenses from exceeding the comparable period’s level.

The filing does not disclose a forward target, operating plan or date for the next results announcement. The next disclosures to watch are changes in the Rs 56.72 crore combined borrowing balance, the Rs 66.30 crore short-term loans and advances balance, and finance costs following the Rs 16.02 crore borrowing proceeds recorded during the half year.