Saboo Sodium Chloro PBT falls 31% as costs outpace sales

Saboo Sodium Chloro Limited reported unaudited standalone profit before tax, or PBT, of Rs 1.61 crore for the quarter ended September 30, 2026, down 31% from Rs 2.33 crore a year earlier, although revenue from operations increased 16% to Rs 17.91 crore.

How much did Saboo Sodium Chloro earn in the September quarter?

Saboo Sodium Chloro earned PBT of Rs 1.61 crore in the quarter ended September 30, 2026, compared with Rs 2.33 crore in the corresponding quarter of 2025. The Rs 71.74 lakh reduction was 30.8% year on year, while PBT was also below Rs 1.96 crore in the quarter ended June 30, 2026.

The company reported no current or deferred tax expense in the September 2026 quarter, leaving net profit at Rs 1.61 crore, equal to PBT. Net profit was Rs 2.33 crore in the September 2025 quarter, while basic and diluted earnings per equity share were Rs 0.38 each in September 2026, versus Rs 0.55 each a year earlier.

Revenue from operations rose to Rs 17.91 crore from Rs 15.44 crore, an increase of Rs 2.46 crore. Total revenue was Rs 17.82 crore because other income was negative Rs 8.39 lakh, compared with positive other income of Rs 31,000 in the year-earlier quarter.

The September 2026 financial results were unaudited and standalone, and the board approved them on November 13, 2026 after an audit committee review. Paid-up equity share capital was Rs 42.00 crore at September 30, 2026, with a face value of Rs 10 per equity share.

Why did Saboo Sodium Chloro’s profit decline despite higher revenue?

Saboo Sodium Chloro’s reported expenses rose faster than revenue, although the filing does not give a management explanation for the change in profit. Total expenses increased 23.6% to Rs 16.21 crore in the September 2026 quarter from Rs 13.12 crore a year earlier, exceeding the Rs 2.46 crore increase in revenue from operations.

Cost of materials consumed increased to Rs 6.35 crore from Rs 4.66 crore, a rise of Rs 1.69 crore. Changes in inventories were a credit of Rs 96.38 lakh in the September 2026 quarter, compared with a credit of Rs 2.59 crore in the prior-year quarter, reducing the benefit from that line item by Rs 1.63 crore.

Finance costs rose to Rs 79.56 lakh from Rs 54.59 lakh, an increase of Rs 24.97 lakh or 45.7%. Employee benefit expense increased to Rs 25.55 lakh from Rs 18.52 lakh, while depreciation and amortisation expense declined to Rs 37.60 lakh from Rs 41.59 lakh.

Total other expenses declined to Rs 9.40 crore from Rs 9.91 crore, a reduction of Rs 50.53 lakh. That reduction was offset in the reported figures by higher material consumption, the lower inventory credit and the increase in finance costs.

Which Saboo Sodium Chloro segments increased revenue and profit?

Saboo Sodium Chloro’s salt manufacturing segment increased September-quarter revenue to Rs 17.29 crore from Rs 14.96 crore, while hotel and resort revenue rose to Rs 61.76 lakh from Rs 48.16 lakh. Salt manufacturing accounted for Rs 2.33 crore of the company’s Rs 2.46 crore increase in revenue from operations.

Salt manufacturing profit before tax and interest declined to Rs 1.99 crore from Rs 2.55 crore, despite the segment’s revenue growth. Hotel and resort profit before tax and interest also declined to Rs 41.21 lakh from Rs 55.11 lakh, so both operating segments reported lower profit on the filing’s segment measure.

Combined segment profit before finance cost was Rs 2.41 crore, compared with Rs 2.87 crore in the September 2025 quarter. The prior-year segment table included an energy-segment loss of Rs 23.18 lakh, whereas the September 2026 table showed no energy-segment revenue or segment result.

The segment statement deducted finance cost of Rs 79.50 lakh from combined segment profit of Rs 2.41 crore to reach PBT of Rs 1.61 crore. The main financial statement reported finance cost of Rs 79.56 lakh, a Rs 6,000 difference between the two presentations, while both reported PBT of Rs 1.61 crore.

How did Saboo Sodium Chloro perform in the first half?

Saboo Sodium Chloro reported PBT of Rs 3.57 crore for the half year ended September 30, 2026, up 11.8% from Rs 3.19 crore in the corresponding 2025 half year. This first-half increase contrasts with the September-quarter decline, with the June 2026 quarter contributing Rs 1.96 crore based on the reported half-year and September-quarter figures.

Revenue from operations for the half year rose to Rs 34.53 crore from Rs 32.08 crore, an increase of Rs 2.45 crore or 7.6%. Total revenue was Rs 34.69 crore, including other income of Rs 16.01 lakh, compared with total revenue of Rs 32.08 crore in the corresponding 2025 period.

First-half total expenses were Rs 31.11 crore, compared with Rs 23.89 crore a year earlier. Finance costs rose to Rs 1.58 crore from Rs 1.09 crore, while the filing reported a Rs 37.78 lakh increase in PBT for the six-month period.

Salt manufacturing generated half-year revenue of Rs 33.38 crore, compared with Rs 30.89 crore in the year-earlier period, and segment profit before tax and interest increased to Rs 4.95 crore from Rs 3.92 crore. Hotel and resort revenue was Rs 1.15 crore versus Rs 1.10 crore, but its segment profit before tax and interest fell to Rs 19.65 lakh from Rs 55.37 lakh.

Conclusion

Saboo Sodium Chloro’s September-quarter results show that higher sales did not translate into higher reported profit. Revenue from operations increased 16.0% to Rs 17.91 crore, but PBT fell 30.8% to Rs 1.61 crore as total expenses rose 23.6%, with material consumption, inventory movements and finance costs changing unfavourably against the prior-year quarter.

The filing does not disclose a profit forecast, operating target or expansion plan for the next period. The unresolved issue for subsequent results is whether salt manufacturing can improve profit conversion after segment profit before tax and interest fell to Rs 1.99 crore despite Rs 17.29 crore of quarterly revenue, and whether finance costs remain above the Rs 54.59 lakh reported a year earlier.