Revathi Equipment first-half profit rises to Rs 5.65 crore

Revathi Equipment India Limited reported consolidated net profit of Rs 5.65 crore for the six months ended September 30, 2026, against Rs 99 lakh a year earlier, as revenue from operations rose to Rs 68.40 crore from Rs 45.09 crore and operating cash flow turned positive at Rs 17.36 crore.

How did Revathi Equipment perform in the first half?

Revathi Equipment increased consolidated revenue from operations by Rs 23.31 crore year on year to Rs 68.40 crore in the six months ended September 30, 2026. Total income reached Rs 73.78 crore, compared with Rs 53.68 crore in the corresponding six months of 2025, reflecting higher operating revenue and other income.

Net profit after tax rose to Rs 5.65 crore from Rs 99 lakh in the prior-year half, while profit before tax increased to Rs 7.60 crore from Rs 1.38 crore. The difference between profit before tax and net profit included current tax of Rs 1.75 crore and deferred tax of Rs 20 lakh during the latest half year.

Total expenses rose to Rs 66.18 crore from Rs 52.28 crore, while total income increased by Rs 20.10 crore from the year-earlier period. Cost of materials consumed was Rs 25.69 crore, compared with Rs 3.48 crore a year earlier, while employee-benefit expense was Rs 13.83 crore against Rs 13 crore.

The company reported earnings per share, or EPS, of Rs 18.41 for the six-month period, versus Rs 3.23 in the corresponding period of 2025. Total comprehensive income was Rs 5.20 crore, compared with Rs 77 lakh, after an other comprehensive loss of Rs 49 lakh in the latest half year.

What changed in Revathi Equipment's second quarter?

Revathi Equipment reported revenue from operations of Rs 33.38 crore for the quarter ended September 30, 2026, compared with Rs 22.83 crore in the same quarter of 2025. Quarterly net profit after tax was Rs 3.62 crore, up from Rs 42 lakh a year earlier, while quarterly profit before tax reached Rs 5.01 crore from Rs 32 lakh.

The September-quarter result also improved sequentially from the quarter ended June 30, 2026. Revenue from operations increased from Rs 30.02 crore in June to Rs 33.38 crore in September, and net profit rose from Rs 2.04 crore to Rs 3.62 crore.

September-quarter total income was Rs 36.76 crore, including Rs 3.38 crore of other income, against total expenses of Rs 31.75 crore. Finance costs were Rs 2.27 crore, broadly close to Rs 2.26 crore in the September 2025 quarter, while depreciation and amortisation expense was Rs 94 lakh, compared with Rs 57 lakh.

Quarterly EPS was Rs 11.77, versus Rs 1.36 in the year-earlier quarter and Rs 6.64 in the June 2026 quarter. Total comprehensive income for the September quarter was Rs 3.08 crore, after an other comprehensive loss of Rs 53 lakh.

Did Revathi Equipment generate operating cash?

Revathi Equipment generated net cash from operating activities of Rs 17.36 crore in the six months ended September 30, 2026, reversing net operating cash used of Rs 7.84 crore in the comparable 2025 period. Cash generated from operations before direct taxes was Rs 20.93 crore, versus a cash outflow of Rs 7.47 crore a year earlier.

The latest operating cash generation included a Rs 14.76 crore reduction in trade receivables and a Rs 10.09 crore reduction in inventories. These movements were partly offset by a Rs 22.54 crore reduction in trade payables and a Rs 5.08 crore reduction in other current liabilities.

Operating profit before working-capital changes was Rs 11.01 crore, compared with Rs 53 lakh in the prior-year half. This figure included profit before tax of Rs 7.60 crore, depreciation and amortisation of Rs 1.83 crore, finance cost including lease interest of Rs 4.61 crore, and a Rs 3.47 crore net gain on investments measured at fair value through profit or loss.

Direct taxes paid were Rs 3.57 crore during the latest half year, against Rs 37 lakh in the earlier period. The cash-flow statement recorded closing cash and cash equivalents of Rs 8 lakh as of September 30, 2026, after a net decrease of Rs 1.83 crore during the half year.

How did Revathi Equipment's borrowings and balance sheet move?

Revathi Equipment's current borrowings declined to Rs 52.57 crore at September 30, 2026, from Rs 67.65 crore at March 31, 2026. The cash-flow statement recorded net repayment of short-term borrowings of Rs 15.08 crore, compared with net proceeds of Rs 17.88 crore in the first half of 2025.

Total assets were Rs 231.55 crore at September 30, down from Rs 267.71 crore at March 31. Current assets decreased to Rs 182.72 crore from Rs 216.66 crore, with inventories falling to Rs 59.74 crore from Rs 71.94 crore and trade receivables declining to Rs 46.85 crore from Rs 61.06 crore.

Equity increased to Rs 146.33 crore from Rs 140.51 crore over the same period. Other equity rose to Rs 143.26 crore from Rs 137.44 crore, while paid-up equity share capital remained Rs 3.07 crore.

Current liabilities fell to Rs 82.93 crore from Rs 126.19 crore. Trade payables due to creditors other than micro and small enterprises reduced to Rs 19.31 crore from Rs 39.58 crore, and other current liabilities declined to Rs 2.85 crore from Rs 7.93 crore.

Conclusion

Revathi Equipment's first-half results combined higher revenue of Rs 68.40 crore with profit before tax of Rs 7.60 crore and net operating cash inflow of Rs 17.36 crore, compared with operating cash outflow in the prior-year period. The balance-sheet movement also included a Rs 15.08 crore net repayment of short-term borrowings and a reduction in current liabilities to Rs 82.93 crore from Rs 126.19 crore.

What to watch next is the treatment of the two limited liability partnerships in consolidated reporting. Revathi Drilling Solutions LLP's financial statements were reviewed by the statutory auditor, while Global Essential Mining Supplies LLP's financial information was management-certified and not audited or reviewed; its half-year revenue was Rs 28 lakh and profit after tax was Rs 14 lakh.