Safari profit falls 21% despite 9% September revenue rise

Safari Industries (India) Limited reported consolidated profit of Rs 36.93 crore for the quarter ended 30 September 2026, down 21% from Rs 46.94 crore a year earlier, even as revenue from operations rose 9% to Rs 582.22 crore. Total expenses increased faster than total income, reducing profit before tax to Rs 45.67 crore.

Why did Safari's September-quarter profit decline?

Safari's consolidated profit declined because the Rs 50.15 crore year-on-year increase in total income was exceeded by a Rs 64.61 crore increase in total expenses in the quarter ended 30 September 2026. Total income reached Rs 589.45 crore from Rs 539.30 crore, while profit before tax fell to Rs 45.67 crore from Rs 60.13 crore. Total tax expense declined to Rs 8.74 crore from Rs 13.19 crore, but the lower tax charge did not offset the reduction in pre-tax profit.

The quarterly comparison also showed a sequential decline in earnings. Safari's revenue from operations was Rs 582.22 crore in the September 2026 quarter, compared with Rs 588.58 crore in the June 2026 quarter, while consolidated profit fell from Rs 47.75 crore. Basic earnings per share, not annualised for quarters, were Rs 7.54, against Rs 9.75 in the June 2026 quarter and Rs 9.58 in the September 2025 quarter.

Which costs increased in Safari's September 2026 quarter?

Safari's cost of materials consumed increased to Rs 245.89 crore in the September 2026 quarter from Rs 176.95 crore a year earlier, a rise of Rs 68.94 crore. Other expenses rose by Rs 14.79 crore to Rs 156.37 crore, employee-benefit expense increased by Rs 6.12 crore to Rs 41.59 crore, and depreciation and amortisation increased by Rs 1.29 crore to Rs 18.84 crore. Finance costs were Rs 2.44 crore, compared with Rs 2.11 crore a year earlier.

Purchases of stock-in-trade rose to Rs 118.30 crore from Rs 98.32 crore, adding Rs 19.98 crore to reported costs. This was partly offset by a Rs 39.65 crore credit from changes in inventories of finished goods, stock-in-trade and work-in-progress, compared with a Rs 7.19 crore expense under that line a year earlier. Total expenses rose about 13%, ahead of the roughly 9% increase in total income, and profit before tax fell about 24%.

How did Safari perform in the first half of FY 2026-27?

Safari's consolidated revenue from operations for the six months ended 30 September 2026 rose to Rs 1,170.80 crore from Rs 1,061.38 crore in the corresponding six months of 2025. First-half profit was Rs 84.68 crore, compared with Rs 97.43 crore a year earlier, while profit before tax declined to Rs 106.72 crore from Rs 125.57 crore. The six-month result therefore reflected the same pattern as the September quarter: higher sales alongside lower profit.

Cost of materials consumed in the six-month period increased to Rs 446.97 crore from Rs 328.23 crore, while other expenses rose to Rs 305.50 crore from Rs 272.57 crore. Total expenses were Rs 1,078.51 crore, up from Rs 947.36 crore, exceeding the Rs 112.30 crore increase in total income to Rs 1,185.23 crore. Basic earnings per share for the six months were Rs 17.28, down from Rs 19.92 in the prior-year period.

Safari reported consolidated net cash generated from operating activities of Rs 1.58 crore for the six months ended 30 September 2026, compared with Rs 61.64 crore in the prior-year period. Trade receivables increased by Rs 148.89 crore and inventories increased by Rs 6.73 crore, while trade payables increased by Rs 74.01 crore. Consolidated cash and cash equivalents stood at Rs 2.52 crore on 30 September 2026, compared with Rs 8.49 crore at 31 March 2026.

What businesses are included in Safari's consolidated results?

Safari's consolidated results include the holding company and its two wholly owned subsidiaries, Safari Manufacturing Limited and Safari Lifestyles Limited. The group reports a single operating segment, luggage business, under Indian Accounting Standard 108, which covers operating-segment disclosures. The Rs 582.22 crore consolidated revenue for the September 2026 quarter was therefore not split by product line or subsidiary in the filing.

Safari's unaudited standalone and consolidated results for the quarter and six months ended 30 September 2026 were reviewed by its Audit Committee and approved by its board on 5 November 2026. The statutory auditors carried out a limited review of the results. During the September quarter, Safari allotted 1,755 equity shares of face value Rs 2 each to eligible employees under the Safari Employees Stock Appreciation Rights Scheme, 2022; the six-month allotment was 3,379 shares.

What dividend and capacity investment has Safari disclosed?

Safari's board declared an interim dividend of Rs 2 per equity share of face value Rs 2 for FY 2026-27 on 5 November 2026. The record date is 12 November 2026, and Safari said the dividend will be paid on or before 5 December 2026. The company had paid Rs 9.80 crore in dividends during the six months ended 30 September 2026, compared with Rs 7.33 crore in the corresponding prior-year period.

Safari also approved capital expenditure of up to Rs 170 crore for the company and up to Rs 60 crore for Safari Manufacturing Limited. The subsidiary's investment covers infrastructure improvement, land acquisition for a new warehouse, and plant and machinery. Safari said the spending is intended to support increased demand and future growth.

Safari Manufacturing Limited has existing capacity of 10 lakh pieces a month and reported 100% capacity utilisation. Its approved plan is to add 6 lakh pieces of monthly capacity by June 2028, taking capacity to 16 lakh pieces a month. The filing states that the up-to-Rs 60 crore subsidiary investment will be funded through internal accruals.

Conclusion

Safari's September-quarter result showed that a Rs 48.67 crore year-on-year increase in consolidated revenue from operations did not translate into higher earnings. The Rs 68.94 crore rise in materials consumed, alongside higher stock-in-trade purchases, employee costs and other expenses, contributed to a Rs 10.01 crore decline in quarterly consolidated profit to Rs 36.93 crore.

The next disclosed milestones are the 12 November 2026 record date and payment of the Rs 2 interim dividend on or before 5 December 2026. Over the longer term, Safari Manufacturing Limited is scheduled to add 6 lakh pieces of monthly capacity by June 2028, supported by up to Rs 60 crore of investment from internal accruals.