Precot quarterly profit rises over fourfold to Rs 30.2638 crore

Precot Limited reported net profit of Rs 30.2638 crore for the quarter ended 30 September 2026, compared with Rs 7.0279 crore a year earlier, as revenue from operations increased about 32% to Rs 270.4004 crore. Profit before tax rose to Rs 39.0847 crore from Rs 8.634 crore, with no exceptional items reported.

How did Precot perform in the September 2026 quarter?

Precot’s net profit rose more than fourfold year on year to Rs 30.2638 crore in the quarter ended 30 September 2026 from Rs 7.0279 crore in the quarter ended 30 September 2025. The increase followed a Rs 30.4507 crore rise in profit before tax, which reached Rs 39.0847 crore from Rs 8.634 crore. The statement shows no exceptional items in either of the two quarters.

Revenue from operations increased to Rs 270.4004 crore from Rs 204.7573 crore, while other operating revenue rose to Rs 12.1475 crore from Rs 8.7897 crore. Other income was Rs 0.6669 crore, compared with Rs 0.3253 crore. These income lines took total income to Rs 283.2148 crore, versus Rs 213.8723 crore a year earlier.

The sequential comparison also showed higher earnings in the September quarter. Revenue from operations was Rs 236.4104 crore in the quarter ended 30 June 2026, while net profit was Rs 26.6077 crore. Earnings per share, or EPS, was Rs 25.22 in the latest quarter, against Rs 22.17 in the preceding quarter and Rs 5.86 in the September 2025 quarter; the company stated that EPS was not annualised.

What drove Precot’s higher quarterly profit?

Precot’s total expenses increased to Rs 244.1301 crore in the September 2026 quarter from Rs 205.2383 crore a year earlier, an increase of about 19% that was below the approximately 32% rise in revenue from operations. The resulting gap between total income of Rs 283.2148 crore and total expenses of Rs 244.1301 crore produced profit before tax of Rs 39.0847 crore.

Cost of materials consumed, the largest expense line, rose to Rs 137.6796 crore from Rs 113.8432 crore. Employee benefits expense increased to Rs 26.8551 crore from Rs 22.5117 crore, and depreciation, amortisation and impairment expense rose to Rs 8.2795 crore from Rs 6.9745 crore. Other expenses were Rs 58.5371 crore, compared with Rs 57.6999 crore a year earlier.

Two expense lines declined from the September 2025 quarter. Purchases of stock in trade fell to Rs 6.2049 crore from Rs 8.9563 crore, while finance costs decreased to Rs 7.6931 crore from Rs 9.9405 crore. Changes in inventories were negative Rs 1.1192 crore, versus negative Rs 14.6878 crore in the prior-year quarter, contributing to the movement in total expenses.

Tax expense increased to Rs 8.8209 crore from Rs 1.6061 crore as pre-tax profit rose. Current tax was Rs 8 crore and deferred tax expense for earlier years was Rs 0.8209 crore. Total comprehensive income was Rs 29.7013 crore after other comprehensive income of negative Rs 0.5615 crore, including defined-benefit-plan remeasurement and related tax.

What do Precot’s half-year results show?

Precot reported net profit of Rs 56.8715 crore for the half year ended 30 September 2026, compared with Rs 18.3299 crore for the half year ended 30 September 2025. Revenue from operations over the six months rose to Rs 506.8108 crore from Rs 401.6934 crore, and profit before tax increased to Rs 74.3962 crore from Rs 23.5456 crore.

Total income for the half year was Rs 530.3201 crore, compared with Rs 421.4869 crore in the corresponding prior-year period. Total expenses rose to Rs 455.9239 crore from Rs 397.9413 crore. Materials consumed increased to Rs 249.7439 crore from Rs 229.3708 crore, whereas finance costs decreased to Rs 15.2196 crore from Rs 18.0503 crore.

Precot reported net cash flow from operating activities of Rs 36.2629 crore for the half year ended 30 September 2026. The filing also reports Rs 90.4521 crore for the year ended 31 March 2026, but the periods are not directly comparable because the latest figure covers six months and the other covers a full financial year.

Working-capital movements included a Rs 32.6781 crore increase in inventories and a Rs 24.4773 crore increase in other assets during the half year, both shown as operating-cash uses. Net cash used in investing activities was Rs 9.0033 crore, including Rs 13.1989 crore spent on property, plant and equipment, intangible assets, capital work in progress and capital advances. Net cash used in financing activities was Rs 19.8532 crore.

How did Precot’s balance sheet change by September 2026?

Precot’s consolidated total assets were Rs 993.0136 crore at 30 September 2026, up from Rs 931.5931 crore at 31 March 2026. Current assets increased to Rs 418.7523 crore from Rs 350.313 crore, including inventories of Rs 194.2836 crore versus Rs 161.6055 crore and other current assets of Rs 62.3388 crore versus Rs 38.0696 crore.

Cash and cash equivalents stood at Rs 2.9799 crore at 30 September 2026, compared with Rs 1.3493 crore at 31 March 2026. Bank balances other than cash equivalents were Rs 9.2314 crore, up from Rs 3.4556 crore. Trade receivables rose to Rs 138.9443 crore from Rs 134.8235 crore over the same period.

Consolidated equity attributable to Precot’s owners increased to Rs 532.0249 crore at 30 September 2026 from Rs 480.7343 crore at 31 March 2026. Paid-up equity share capital was unchanged at Rs 12 crore, while other equity increased to Rs 520.0249 crore from Rs 468.7343 crore. Total equity included a non-controlling interest of Rs 0.001 crore.

Total liabilities were Rs 460.9877 crore at 30 September 2026, compared with Rs 450.8578 crore at 31 March 2026. Non-current borrowings declined to Rs 108.1429 crore from Rs 130.3 crore, but current borrowings increased to Rs 240.9406 crore from Rs 214.4504 crore. Combined borrowings were therefore Rs 349.0835 crore, compared with Rs 344.7504 crore six months earlier.

Did subsidiaries affect Precot’s reported results?

Precot said its standalone and consolidated financial results were identical for all presented periods because its subsidiaries had no business operations during the period. The company’s sole reportable operating segment is textiles under Indian Accounting Standard 108, or Ind AS 108. Its results were approved by the board on 13 November 2026 after a limited review by the statutory auditors.

During the September 2026 quarter, Precot incorporated wholly owned subsidiary Precot Holdings Limited and step-down subsidiary Precot International (FZE) in Dubai. The disclosed capital of the entities is AED 1 lakh and AED 1.5 lakh, respectively, and Precot said the capital was to be remitted. Neither entity had commenced business as of the 13 November 2026 filing date.

The auditor listed Suprem Associates, in which Precot holds 99.88%, as another subsidiary. Three subsidiaries, including the step-down subsidiary, had total assets of Rs 24.2157 crore at 30 September 2026 but nil revenue, net profit after tax, total comprehensive income and net cash flows for the reported periods. Their financial results were unaudited and not reviewed by the auditor.

VKS Aiyer & Co issued a limited-review conclusion dated 13 November 2026 rather than an audit opinion. It stated that nothing had come to its attention to indicate that the results failed to make required disclosures or contained a material misstatement. The auditor said management considered the unreviewed subsidiaries immaterial to the group and did not modify its conclusion on that matter.

Conclusion

Precot converted a roughly 32% year-on-year increase in September-quarter revenue from operations into net profit of Rs 30.2638 crore, compared with Rs 7.0279 crore a year earlier. Total expenses rose more slowly than income, while finance costs fell to Rs 7.6931 crore from Rs 9.9405 crore. The half-year figures similarly showed profit before tax of Rs 74.3962 crore against Rs 23.5456 crore in the corresponding period.

The next disclosed matters to watch are the planned remittance of AED 1 lakh and AED 1.5 lakh capital to Precot Holdings Limited and Precot International (FZE), respectively, and the start of their business operations. Subsequent filings will also show whether the Rs 32.6781 crore inventory increase and Rs 24.4773 crore rise in other assets continue to affect operating cash flow.