R M Drip Q2 profit drops 67% as revenue declines sequentially

R M Drip and Sprinklers Systems Limited reported consolidated profit for the quarter ended September 30, 2026 of Rs 1.87 crore, down 67% year on year and 65% sequentially, after revenue from operations fell to Rs 28.95 crore and cost of materials consumed reached Rs 24.08 crore.

Why did R M Drip’s Q2 profit fall?

R M Drip’s September 2026-quarter profit fell because profit before tax declined to Rs 2.78 crore from Rs 8.11 crore a year earlier and Rs 7.00 crore in the June 2026 quarter. Profit for the period was Rs 1.87 crore, compared with Rs 5.73 crore in September 2025 and Rs 5.31 crore in June 2026.

Profit attributable to owners was Rs 1.86 crore in the latest quarter, against Rs 5.73 crore a year earlier and Rs 5.33 crore sequentially. Basic and diluted earnings per equity share were 4 paise, compared with 13 paise in the September 2025 quarter and 12 paise in the June 2026 quarter.

The year-on-year reduction began above the tax line, as total income declined to Rs 29.20 crore from Rs 32.94 crore. The prior-year comparison included Rs 1.75 crore of other income, while the September 2026 quarter recorded Rs 25.86 lakh of other income.

How did R M Drip’s revenue change in Q2?

R M Drip’s revenue from operations declined 28% sequentially to Rs 28.95 crore in the September 2026 quarter from Rs 40.39 crore in the June 2026 quarter. Revenue also fell 7% from Rs 31.18 crore in the September 2025 quarter.

The half-year comparison moved in the other direction. Revenue from operations for the half year ended September 30, 2026 rose to Rs 69.33 crore from Rs 61.66 crore in the corresponding 2025 period, although the September-quarter result was below both comparison quarters.

R M Drip reports one business segment under Indian Accounting Standard 108, Operating Segments, and therefore did not provide revenue or profit by product category or subsidiary. Other income increased sequentially to Rs 25.86 lakh from Rs 8.30 lakh in June 2026, but remained below the Rs 1.75 crore reported in the September 2025 quarter.

Which costs affected R M Drip’s Q2 earnings?

R M Drip’s material-consumption cost increased to Rs 24.08 crore in the September 2026 quarter from Rs 19.35 crore a year earlier, despite the Rs 2.23 crore decline in revenue over that period. Material consumption was also slightly above Rs 23.75 crore in the June 2026 quarter.

Total expenses were Rs 26.42 crore, up from Rs 24.82 crore in the September 2025 quarter but down from Rs 33.47 crore in the preceding quarter. Other expenses declined to Rs 2.27 crore from Rs 4.36 crore year on year and Rs 4.18 crore sequentially, while employee-benefit expense rose to Rs 2.04 crore from Rs 1.91 crore a year earlier.

Finance costs were broadly unchanged at Rs 1.14 crore, compared with Rs 1.15 crore in the September 2025 quarter, while depreciation and amortisation was Rs 91.14 lakh. Purchases of stock-in-trade were Rs 54.15 lakh in the latest quarter, whereas the corresponding prior-year amount was nil.

Changes in inventories of work in progress and finished goods reduced reported expenses by Rs 4.56 crore in the September 2026 quarter, compared with a Rs 2.83 crore reduction a year earlier. The filing provides these expense lines but does not give management commentary on sales volumes, product pricing or material procurement.

What do R M Drip’s half-year cash flow and balance sheet show?

R M Drip generated Rs 4.69 crore of net operating cash flow in the half year ended September 30, 2026, compared with net cash used of Rs 5.96 crore in the corresponding 2025 half year. Cash generated from operating activities before tax was Rs 10.94 crore, versus a Rs 3.33 crore outflow a year earlier.

Income-tax payments increased to Rs 6.26 crore from Rs 2.63 crore, reducing the operating cash retained during the period. The group used Rs 1.42 crore in investing activities, including Rs 1.41 crore for property, plant, equipment and capital work in progress.

Financing activities used Rs 3.58 crore in the 2026 half year, compared with an inflow of Rs 6.93 crore in the prior-year period. R M Drip repaid Rs 16.00 crore of long-term borrowings and received Rs 13.35 crore of long-term borrowing proceeds, while cash and cash equivalents including deposits maturing within three months closed at Rs 63.91 lakh, down from Rs 72.26 lakh at March 31, 2026.

Total assets stood at Rs 210.71 crore at September 30, 2026, compared with Rs 209.60 crore at March 31, 2026. Trade receivables rose to Rs 137.44 crore from Rs 136.69 crore, inventories decreased to Rs 33.84 crore from Rs 33.97 crore, and total borrowings fell to Rs 52.34 crore from Rs 53.61 crore.

Are R M Drip’s quarterly comparisons fully like-for-like?

R M Drip’s consolidated comparisons are affected by a disclosed change in control of Tuljai Agro Chemicals Private Limited during the prior financial year. R M Drip acquired a 51.20% stake on May 21, 2024, ceased to control the entity after a reduction in holding on June 28, 2025, and raised its holding to 66.69% on October 13, 2025.

Tuljai Agro Chemicals Private Limited was consolidated line by line through June 28, 2025, accounted for as an associate using the equity method from June 29 to October 12, 2025, and returned to line-by-line consolidation from October 13, 2025. R M Drip states that the September 2026 unaudited results include the entity under line-by-line consolidation.

The audit committee reviewed the September 2026 quarter and half-year results on November 9, 2026, and the board approved them on the same date. The independent auditor’s review report says the review is less extensive in scope than an audit and does not express an audit opinion.

Conclusion

R M Drip’s September-quarter result combined lower revenue with a higher year-on-year material-consumption charge and a much smaller other-income contribution than in the prior-year quarter. These movements reduced profit before tax to Rs 2.78 crore and profit for the period to Rs 1.87 crore, even as half-year operating cash flow turned to an inflow of Rs 4.69 crore.

The filing does not disclose a financial target, operating forecast or scheduled reporting date. The disclosed matter to watch in future comparisons is the continuing line-by-line consolidation of Tuljai Agro Chemicals Private Limited after R M Drip increased its holding to 66.69% on October 13, 2025.