Rex Pipes first-half profit rises 84% despite lower revenue

Rex Pipes and Cables Industries Limited reported consolidated profit of Rs 3.61 crore for the half year ended September 30, 2026, up 84% from Rs 1.96 crore a year earlier, despite revenue from operations declining to Rs 60.12 crore from Rs 60.69 crore. Lower expenses lifted profit before tax to Rs 4.52 crore.

How did Rex Pipes perform in the first half of 2026-27?

Rex Pipes increased consolidated profit for the half year ended September 30, 2026, to Rs 3.61 crore from Rs 1.96 crore in the corresponding half year ended September 30, 2025. Profit before tax rose by Rs 1.70 crore to Rs 4.52 crore from Rs 2.82 crore, while total tax expense increased to Rs 91.25 lakh from Rs 85.48 lakh.

Revenue from operations declined by Rs 57.12 lakh year on year to Rs 60.12 crore. Total income nevertheless remained almost unchanged at Rs 61.13 crore in both half years, as other income was Rs 100.85 lakh in the latest period against Rs 43.55 lakh in the prior-year period. The result therefore reflects a profit improvement without sales growth.

The reported figures are consolidated results and include Swastik Infracity Private Limited, identified in the filing as Rex Pipes’ subsidiary. Rex Pipes’ audit committee reviewed the results and its board approved them on November 13, 2026. SCLJ & Associates issued a limited-review conclusion that did not identify a matter suggesting the financial statement lacked required disclosures or contained a material misstatement.

Why did Rex Pipes’ profit rise while revenue declined?

Rex Pipes’ profit rose because total expenses fell by Rs 1.70 crore to Rs 56.61 crore while total income was effectively flat at Rs 61.13 crore. This reduction in expenditure was larger than the Rs 57.12 lakh decline in revenue from operations, increasing profit before tax by Rs 1.70 crore.

Cost of materials consumed decreased to Rs 41.23 crore from Rs 43.59 crore, while other expenses fell to Rs 3.14 crore from Rs 4.01 crore. Finance costs declined to Rs 1.14 crore from Rs 1.37 crore. These movements were partly offset by purchases of stock-in-trade rising to Rs 10.22 crore from Rs 9.06 crore and employee-benefit expense increasing to Rs 1.23 crore from Rs 1.20 crore.

Changes in inventories of finished goods, work-in-progress and stock-in-trade were negative Rs 95.15 lakh, compared with negative Rs 1.57 crore in the earlier half year. Depreciation and amortisation expense declined to Rs 60.27 lakh from Rs 65.42 lakh. Rex Pipes did not provide a management explanation for the individual expense movements, so the filing identifies the accounting movements behind the higher profit rather than their commercial causes.

What do Rex Pipes’ tax and per-share figures show?

Rex Pipes reported basic and diluted earnings per share of Rs 3.82 for the half year ended September 30, 2026, compared with Rs 2.07 for the corresponding 2025 half year. The company stated that half-year earnings per share, or EPS, was not annualised, and each equity share has a face value of Rs 10.

Total tax expense was Rs 91.25 lakh, compared with Rs 85.48 lakh a year earlier. The latest tax charge included current tax of Rs 1.15 crore, partly offset by a Rs 13.46 lakh credit relating to earlier years and a Rs 10.44 lakh deferred-tax credit. In the prior-year half, current tax was Rs 81.94 lakh and deferred-tax expense was Rs 3.53 lakh.

Rex Pipes reported no profit or loss from discontinuing operations in either half-year period. It also reported no exceptional or extraordinary items for the September 2026 half year. Accordingly, the Rs 3.61 crore profit for the period was generated from continuing operations after the stated tax expense.

What changed in Rex Pipes’ cash flow and balance sheet?

Rex Pipes used Rs 6.63 crore in operating activities during the half year ended September 30, 2026, compared with cash generated from operating activities of Rs 4.15 crore for the year ended March 31, 2026. Operating profit before working-capital changes was Rs 6.11 crore in the latest half year, but working-capital adjustments were negative Rs 5.61 crore and net taxes paid were Rs 1.02 crore.

Trade receivables increased by Rs 4.27 crore, short-term loans and advances increased by Rs 3.49 crore, and inventories increased by Rs 2.17 crore in the half year. A Rs 2.06 crore increase in trade payables partly offset those cash uses. The comparison is between a six-month period and a full financial year, as presented in Rex Pipes’ cash-flow statement.

Financing activities generated Rs 7.22 crore in the six months, comprising Rs 2.98 crore of net long-term borrowings and Rs 5.37 crore of net short-term borrowings, offset by Rs 1.14 crore of interest paid. Cash and cash equivalents increased by Rs 78,000 to Rs 1.18 crore at September 30, 2026, from Rs 1.17 crore at the start of the financial year.

Total assets were Rs 93.63 crore at September 30, 2026, compared with Rs 82.34 crore at March 31, 2026. Trade receivables increased to Rs 38.42 crore from Rs 34.14 crore, inventories rose to Rs 28.96 crore from Rs 26.79 crore, and long-term borrowings increased to Rs 3.65 crore from Rs 66.76 lakh. Rex Pipes said Accounting Standard 17 on segment reporting does not apply because it operates in a single business segment.

Conclusion

Rex Pipes reported a substantial increase in first-half consolidated profit despite a modest decline in operating revenue. Total income stayed close to Rs 61.13 crore, while total expenses fell to Rs 56.61 crore from Rs 58.31 crore, widening profit before tax and lifting post-tax profit to Rs 3.61 crore.

The next disclosed matters to watch are working-capital movements and borrowings after September 30, 2026, because receivables, inventory and short-term loans and advances absorbed cash in the half year while financing activities provided Rs 7.22 crore. Separately, executive director Jitendra Kumar Kaler is scheduled to cease as a director and committee member at the close of business on November 30, 2026, following his resignation for personal reasons.