Safety Controls & Devices reports Rs 10.32 crore H1 profit

Safety Controls & Devices Limited reported net profit of Rs 10.32 crore for the half year ended 30 September 2026, up 37.3% from Rs 7.52 crore a year earlier, while revenue from operations rose 35.8% to Rs 58.42 crore. Its board approved the unaudited results on 14 November 2026 after a limited review.

How did Safety Controls & Devices perform in the September 2026 half year?

Safety Controls & Devices increased revenue from operations to Rs 58.42 crore in the half year ended 30 September 2026 from Rs 43.01 crore in the corresponding half year ended 30 September 2025. Other income rose to Rs 26.79 lakh from Rs 4.93 lakh, taking total income to Rs 58.69 crore from Rs 44.30 crore.

Safety Controls & Devices reported profit before tax of Rs 12.02 crore, compared with Rs 10.03 crore a year earlier, and tax expense of Rs 1.70 crore, compared with Rs 2.49 crore. Net profit consequently increased to Rs 10.32 crore from Rs 7.52 crore, with no exceptional or extraordinary items reported for the September 2026 half year.

Safety Controls & Devices also recorded a different outcome against the six months ended 31 March 2026, the balancing period of the year ended 31 March 2026. Revenue was lower than Rs 73.20 crore in that period, but net profit was higher than Rs 5.87 crore, reflecting a change in the relationship between income, expenses and tax across the two half years.

Which costs changed for Safety Controls & Devices?

Safety Controls & Devices reported material cost of Rs 37.70 crore for the September 2026 half year, up from Rs 26.05 crore a year earlier, alongside the Rs 15.41 crore increase in revenue. Employee-benefit expense rose to Rs 1.81 crore from Rs 1.27 crore, while other expenses increased to Rs 4.25 crore from Rs 2.95 crore.

Safety Controls & Devices' finance cost fell to Rs 2.72 crore from Rs 3.81 crore in the September 2025 half year and Rs 5.40 crore in the six months ended 31 March 2026. Depreciation and amortisation was Rs 19.63 lakh against Rs 18.12 lakh a year earlier, and total expenses rose 36.2% to Rs 46.67 crore from Rs 34.27 crore.

Safety Controls & Devices operates in engineering, procurement and construction (EPC), including substation installation, solar plants, fire-protection systems and related infrastructure projects. Management treats these activities as one reportable segment because of their services, risks and returns, meaning the filing provides no separate revenue or profit figures for the individual EPC activities.

What changed on Safety Controls & Devices' balance sheet?

Safety Controls & Devices reported total assets of Rs 203.27 crore at 30 September 2026, compared with Rs 201.47 crore at 31 March 2026. Shareholders' funds rose to Rs 111.82 crore from Rs 58.76 crore, comprising Rs 19.83 crore of equity share capital and Rs 91.99 crore of reserves and surplus at the September date.

Safety Controls & Devices reduced long-term borrowings to Rs 2.44 crore from Rs 4.83 crore and short-term borrowings to Rs 26.74 crore from Rs 44.29 crore. Current liabilities fell to Rs 88.67 crore from Rs 137.59 crore, including a decline in trade payables to creditors other than micro and small enterprises to Rs 35.15 crore from Rs 59.30 crore.

Safety Controls & Devices' trade receivables decreased by Rs 12.35 crore and inventories by Rs 3.48 crore from 31 March 2026, while other current assets increased by Rs 25.13 crore. The filing identifies unbilled contract revenue as an item presented in other current assets when revenue recognised exceeds customer billing.

Why was Safety Controls & Devices' operating cash flow negative?

Safety Controls & Devices used Rs 19.03 crore in operating activities during the half year ended 30 September 2026, compared with an outflow of Rs 11.22 crore for the year ended 31 March 2026. The cash-flow statement begins with Rs 12.02 crore of profit before tax and shows operating profit before working-capital changes of Rs 14.67 crore.

Safety Controls & Devices recorded cash inflows from a Rs 12.35 crore decrease in trade receivables, a Rs 3.48 crore reduction in inventories and a Rs 8.64 crore decrease in short-term loans and advances. These were offset by a Rs 25.13 crore increase in other current assets, a Rs 24.69 crore decline in trade payables and a Rs 7.72 crore decrease in other current liabilities.

Safety Controls & Devices generated Rs 20.00 crore from financing activities, compared with Rs 9.83 crore for the year ended 31 March 2026. The financing cash flow included Rs 48.00 crore from issuing share capital including share premium, Rs 19.94 crore of net repayment of borrowings, Rs 5.26 crore of initial public offering expenses adjusted against share premium, and Rs 2.72 crore of finance cost.

How does Safety Controls & Devices recognise EPC revenue?

Safety Controls & Devices included Rs 4.38 crore of unbilled revenue, excluding goods and services tax, from EPC contracts executed at various sites in revenue for the half year ended 30 September 2026. It recognises construction-contract revenue using the percentage-of-completion method under Accounting Standard 7, based on management's assessment of work completed by the reporting date.

Safety Controls & Devices will invoice revenue recognised above billed amounts when contractual milestones are achieved or customers certify the work, according to the filing. Current tax of Rs 1.69 crore for the period was calculated after deducting initial public offering issue expenses adjusted against securities premium, while deferred tax was Rs 1.06 lakh.

Safety Controls & Devices' statutory auditor, Panchal S K & Associates, carried out a limited review under Standard on Review Engagements 2410. The auditor said nothing had come to its attention to indicate that the unaudited statement omitted required disclosures or contained a material misstatement, while noting that a review provides less assurance than an audit.

Conclusion

Safety Controls & Devices combined a 35.8% rise in revenue with a 37.3% increase in net profit to Rs 10.32 crore for the half year ended 30 September 2026. Lower finance cost and borrowings coincided with reduced receivables and inventories, but operating cash flow remained negative as other current assets rose and trade payables declined.

The next disclosed matter to watch is the conversion of Rs 4.38 crore of unbilled EPC revenue into invoices as contractual milestones are met or customer certification is received. Subsequent results will also show whether movements in other current assets, receivables and payables alter the Rs 19.03 crore operating cash outflow reported for the half year.