Sarthak Metals revenue up 44%, September profit rises 68%

Sarthak Metals Limited reported revenue from operations of Rs 52.37 crore for the quarter ended September 30, 2026, up 44% from a year earlier, while profit for the period rose 68% to Rs 1.28 crore. However, both revenue and profit were lower than the Rs 55.21 crore and Rs 1.33 crore reported in the June 2026 quarter.

How did Sarthak Metals perform in the September 2026 quarter?

Sarthak Metals delivered higher year-on-year sales and earnings in the September 2026 quarter, with revenue from operations rising from Rs 36.31 crore in September 2025 to Rs 52.37 crore. Total income increased to Rs 52.86 crore from Rs 36.48 crore, while profit before tax rose to Rs 2.03 crore from Rs 1.03 crore. The company reported no exceptional items in either quarter.

Sarthak Metals' total expenses rose to Rs 50.83 crore from Rs 35.45 crore as sales expanded. Cost of materials consumed was Rs 40.60 crore, compared with Rs 27.39 crore a year earlier, while employee-benefit expense increased to Rs 3.87 crore from Rs 3.60 crore. Other expenses were Rs 3.80 crore, up from Rs 3.02 crore in the September 2025 quarter.

Profit for the period reached Rs 1.28 crore, against Rs 75.91 lakh in the prior-year quarter. Tax expense was Rs 75.30 lakh, comprising Rs 69 lakh of current tax, a deferred-tax benefit of Rs 4.69 lakh, and Rs 10.99 lakh of current taxes relating to earlier years. Basic and diluted earnings per share rose to Rs 0.92 from Rs 0.57.

Why was Sarthak Metals' profit lower than in June 2026?

Sarthak Metals reported a sequential decline because September-quarter revenue was Rs 52.37 crore, compared with Rs 55.21 crore in the June 2026 quarter, and profit for the period eased to Rs 1.28 crore from Rs 1.33 crore. Profit before tax slipped to Rs 2.03 crore from Rs 2.07 crore, while total income fell to Rs 52.86 crore from Rs 56.61 crore.

Cost of materials consumed declined to Rs 40.60 crore in September from Rs 45.66 crore in June, broadly following the lower revenue. Finance costs also declined to Rs 7.66 lakh from Rs 25.59 lakh. However, other income fell to Rs 49.65 lakh from Rs 1.39 crore, and purchases of stock-in-trade increased to Rs 1.57 crore from Rs 99.30 lakh.

Inventory movement also differed between the two quarters. Changes in inventories of finished goods, stock-in-trade and work-in-progress were an expense of Rs 28.80 lakh in September, whereas the June quarter recorded a reduction of Rs 65.27 lakh. Employee-benefit expense was nearly unchanged at Rs 3.87 crore in September and Rs 3.88 crore in June.

Although period profit was lower sequentially, total comprehensive income increased to Rs 1.38 crore from Rs 1.21 crore. September included Rs 10.46 lakh of other comprehensive income, while June recorded a Rs 12.23 lakh other comprehensive loss. Earnings per share, which reflect period profit rather than comprehensive income, were Rs 0.92 in September and Rs 0.97 in June.

What do the half-year results show for Sarthak Metals?

Sarthak Metals reported half-year revenue from operations of Rs 107.58 crore for the six months ended September 30, 2026, comprising Rs 55.21 crore in the June quarter and Rs 52.37 crore in the September quarter. Profit for the period was Rs 2.61 crore and profit before tax was Rs 4.10 crore. The filing does not provide a comparable prior-year half-year statement.

Half-year total income was Rs 109.47 crore, including Rs 1.89 crore of other income, and total expenses were Rs 105.36 crore. Materials consumed accounted for Rs 86.26 crore of costs, employee-benefit expense was Rs 7.75 crore, and other expenses were Rs 7.59 crore. No exceptional items were recorded in the six-month period.

The six-month profit of Rs 2.61 crore can be compared only with the full-year profit of Rs 4.61 crore for the year ended March 31, 2026, which is not a like-for-like comparison. Half-year basic and diluted earnings per share were Rs 1.89, compared with Rs 3.37 for the full preceding financial year. Total comprehensive income for the half year was Rs 2.59 crore after a Rs 1.77 lakh other comprehensive loss.

Sarthak Metals identifies Cored Wires as its sole operating segment. Consequently, the September filing does not separate revenue, expenditure, assets or profit between multiple businesses. The single-segment disclosure means the Rs 107.58 crore half-year revenue relates to the company’s reported Cored Wires activity.

How did Sarthak Metals' financial position and cash flow change?

Sarthak Metals' total assets were Rs 133.32 crore at September 30, 2026, down from Rs 137.01 crore at March 31, 2026. Total equity increased to Rs 126.87 crore from Rs 124.28 crore, while total liabilities fell to Rs 6.46 crore from Rs 12.74 crore. Equity share capital was unchanged at Rs 13.69 crore.

The liability reduction was led by lower current borrowings, which declined to Rs 2.58 crore at September 30 from Rs 6.60 crore at March 31. Sarthak Metals reported no non-current borrowings at either date. Other equity increased by Rs 2.59 crore to Rs 113.18 crore, matching the reported half-year total comprehensive income of Rs 2.59 crore.

Working-capital balances also reduced over the six months. Inventories declined to Rs 35.12 crore from Rs 39.24 crore, while trade receivables fell to Rs 51.71 crore from Rs 56.85 crore. Other current assets increased to Rs 9.52 crore from Rs 6.11 crore, and property, plant and equipment decreased to Rs 16.03 crore from Rs 17.27 crore.

Net cash from operating activities was Rs 4.12 crore in the half year ended September 2026. The cash-flow statement shows Rs 4.12 crore generated from lower inventories and Rs 5.15 crore from lower trade receivables, partly offset by a Rs 3.40 crore increase in other current assets and a Rs 2.23 crore increase in other financial assets. Financing activities used Rs 4.27 crore, including a Rs 4.02 crore reduction in other short-term borrowings.

What did Sarthak Metals disclose with the results?

Sarthak Metals' board approved the quarter and half-year results on November 13, 2026, after review by its Audit Committee. Begani & Begani, Chartered Accountants, issued a limited-review report dated November 13, 2026. The reviewer stated that nothing had come to its attention suggesting that the statement did not make the required disclosures or contained material misstatements.

The reviewer also stated that a review is substantially narrower in scope than an audit and does not provide an audit opinion. The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and Regulation 33 of the Securities and Exchange Board of India listing regulations. Sarthak Metals disclosed Rs 1.76 lakh of unrealised foreign-currency gains at September 30, 2026.

Sarthak Metals received and attended no investor complaints during the September 2026 quarter. The company said its limited-reviewed results would be uploaded to its website and made available through BSE Limited and the National Stock Exchange of India Limited. The filing also says previous-period figures were regrouped or reclassified where necessary to conform to the current presentation.

Conclusion

Sarthak Metals' September-quarter results show a substantial year-on-year increase in revenue and profit, supported by revenue growth to Rs 52.37 crore and profit of Rs 1.28 crore. The sequential comparison was less favourable, as revenue fell from Rs 55.21 crore and profit eased from Rs 1.33 crore in June, while half-year operating cash flow was Rs 4.12 crore.

The next disclosed item to watch is the Rs 1.76 lakh unrealised gain on foreign-currency transactions at September 30, 2026, whose reported value can change with subsequent currency movements. Investors can also track the company’s next financial disclosure for whether inventories of Rs 35.12 crore, receivables of Rs 51.71 crore and current borrowings of Rs 2.58 crore continue to change.