Sampat Aluminium Limited profit includes Rs 5.71 crore gain

Sampat Aluminium Limited reported Rs 4.74 crore profit after tax for the half year ended September 30, 2026, including a Rs 5.71 crore non-recurring gain on sale of old plant and machinery. Before exceptional items and tax, Sampat Aluminium earned Rs 58.87 lakh, down from Rs 6.25 crore in the corresponding 2025 half year despite higher revenue.

Why did Sampat Aluminium report Rs 4.74 crore profit?

Sampat Aluminium reported Rs 4.74 crore profit after tax because a Rs 5.71 crore exceptional gain on sale of old plant and machinery lifted profit before tax to Rs 6.30 crore in the half year ended September 30, 2026. Profit before exceptional items and tax was Rs 58.87 lakh. The results recorded total tax expense of Rs 1.56 crore, producing the reported profit after tax.

The company described the machinery-sale profit as non-recurring in its notes to the September 2026 results. The limited-review report also drew attention to the gain, stating that its conclusion was not modified. In the half year ended September 30, 2025, Sampat Aluminium recorded Rs 6.25 crore profit before tax without an exceptional item and Rs 4.73 crore profit after tax, compared with Rs 4.74 crore in the latest period.

Reported earnings per share declined despite the broadly similar profit after tax. Basic and diluted earnings per share were Rs 5.59 for the September 2026 half year, compared with Rs 6.59 for the September 2025 half year. Sampat Aluminium said half-year earnings per share were not annualised.

How did Sampat Aluminium's operating performance change?

Sampat Aluminium's operating performance showed higher sales but lower profit before exceptional items and tax. Revenue from operations increased to Rs 125.09 crore in the half year ended September 30, 2026 from Rs 81.14 crore a year earlier, while profit before exceptional items and tax declined to Rs 58.87 lakh from Rs 6.25 crore.

Material consumption increased to Rs 120.27 crore from Rs 70.72 crore, absorbing most of the Rs 43.95 crore rise in operating revenue. Direct expenses rose to Rs 3.01 crore from Rs 1.55 crore, and depreciation and amortisation increased to Rs 24.94 lakh from Rs 5.17 lakh. Finance cost declined to Rs 76.75 lakh from Rs 90.74 lakh.

Several other expense lines fell year on year. Employee-benefit expense declined to Rs 34.21 lakh from Rs 47.42 lakh, while other expenses decreased to Rs 18.02 lakh from Rs 49.78 lakh. Changes in inventory resulted in a Rs 28.92 lakh credit in the September 2026 half year, compared with a Rs 71.70 lakh expense in the September 2025 half year.

The comparison with the immediately preceding half year also shows lower pre-exceptional profit. Revenue from operations rose from Rs 96.87 crore in the half year ended March 31, 2026 to Rs 125.09 crore, while profit before exceptional items and tax fell from Rs 1.20 crore to Rs 58.87 lakh. Sampat Aluminium said the March 2026 figures were balancing figures derived from audited full-year results and the previously published September 2025 half-year results.

What does Sampat Aluminium's cash flow show?

Sampat Aluminium used Rs 3.25 crore in operating activities during the half year ended September 30, 2026, compared with an operating cash outflow of Rs 9.34 crore a year earlier. The cash-flow statement starts with Rs 6.30 crore profit before tax, then removes the Rs 5.71 crore profit on sale of fixed assets to calculate Rs 1.61 crore operating profit before working-capital changes.

Working-capital movements turned that operating profit into cash generated from operations of negative Rs 3.10 crore before direct tax. Trade receivables, loans, advances and other current assets used Rs 9.39 crore, while inventory contributed Rs 3.05 crore and trade payables and liabilities contributed Rs 1.63 crore. Direct tax paid during the period was Rs 14.81 lakh.

Trade receivables stood at Rs 35.88 crore on September 30, 2026, compared with Rs 29.81 crore on March 31, 2026. Inventory decreased to Rs 40.32 crore from Rs 43.37 crore, while other current liabilities increased to Rs 14.30 crore from Rs 10.27 crore. These changes correspond with the working-capital adjustments reported in the cash-flow statement.

Cash and cash equivalents were Rs 9.94 lakh at September 30, 2026, down from Rs 12.41 lakh at March 31, 2026. Long-term borrowings increased to Rs 9.25 crore from Rs 8.30 crore, and short-term borrowings rose to Rs 13.67 crore from Rs 11.59 crore. Financing activities provided Rs 2.23 crore, while cash and cash equivalents decreased by Rs 2.47 lakh in the half year.

How has Sampat Aluminium used its IPO proceeds?

Sampat Aluminium had used Rs 29.52 crore of the Rs 30.53 crore raised in its September 24, 2025 initial public offering, or IPO, by September 30, 2026. The company reported no deviation or variation in the use of proceeds, with Rs 1.00 crore remaining unutilised for issue expenses.

The company allocated Rs 23.32 crore to capital expenditure and reported full utilisation by September 30, 2026. The stated purpose was a new manufacturing facility at Borisana, Kadi, Mehsana, Gujarat. Sampat Aluminium also reported full use of Rs 4.50 crore allocated to general corporate purposes.

Of the Rs 2.71 crore allocated to issue expenses, Sampat Aluminium had used Rs 1.70 crore by September 30, 2026. Property, plant and equipment and capital work in progress together were Rs 14.91 crore at that date, compared with Rs 6.31 crore at March 31, 2026. The September balance included Rs 8.50 crore of tangible assets and Rs 6.41 crore of capital work in progress.

Total equity and liabilities rose to Rs 119.71 crore at September 30, 2026 from Rs 103.85 crore at March 31, 2026. Shareholders' funds increased to Rs 61.39 crore from Rs 56.68 crore, including reserves and surplus of Rs 52.91 crore. Sampat Aluminium said it operates in a single segment and therefore did not provide segment-level revenue or profitability data.

Conclusion

Sampat Aluminium's September 2026 half-year results separate reported earnings from earnings before exceptional items. Operating revenue increased by Rs 43.95 crore year on year to Rs 125.09 crore, yet profit before exceptional items and tax fell by Rs 5.66 crore to Rs 58.87 lakh. The Rs 5.71 crore gain on sale of old machinery enabled profit after tax to remain at Rs 4.74 crore.

The disclosed matters to watch are the remaining Rs 1.00 crore of IPO proceeds allocated to issue expenses and the planned Borisana manufacturing facility, for which Sampat Aluminium reported full use of the Rs 23.32 crore capital-expenditure allocation. Subsequent results can also show whether receivables of Rs 35.88 crore and operating cash outflow of Rs 3.25 crore change as the asset base develops.