Shakti Press revenue rises to Rs 42.43 crore, profit falls

Shakti Press Limited reported unaudited standalone revenue from operations of Rs 42.43 crore for the quarter ended September 30, 2026, against Rs 1.52 crore a year earlier, while net profit declined to Rs 18.52 lakh from Rs 20.45 lakh as expenses and working-capital requirements increased.

How did Shakti Press perform in the September quarter?

Shakti Press reported revenue from operations of Rs 42.43 crore in the September 2026 quarter, compared with Rs 1.52 crore in the September 2025 quarter and Rs 27.66 crore in the June 2026 quarter. Total revenue was also Rs 42.43 crore because the company reported no other income, whereas total revenue in the year-earlier quarter was Rs 1.76 crore, including Rs 23.86 lakh of other income.

Profit before tax was Rs 25.02 lakh, up from Rs 20.45 lakh in the September 2025 quarter but below Rs 57.76 lakh in the June 2026 quarter. Tax expense was Rs 6.51 lakh, compared with Rs 5.32 lakh a year earlier and Rs 15.02 lakh in the preceding quarter. Net profit consequently fell to Rs 18.52 lakh from Rs 20.45 lakh year on year and from Rs 42.74 lakh sequentially. Basic and diluted earnings per share were Rs 0.07, against Rs 0.06 in September 2025.

The September-quarter outcome shows that revenue growth did not translate into higher net profit. Total expenses rose to Rs 42.18 crore from Rs 1.55 crore in the year-earlier quarter, leaving a narrower difference between revenue and costs. The results were reviewed by the Audit Committee and approved by Shakti Press's board on November 5, 2026.

What changed in Shakti Press's costs between quarters?

Shakti Press's inventory-related cost pattern changed sharply from the June 2026 quarter. The change in inventories of finished goods, work in progress and stock-in-trade was an expense of Rs 26.05 crore in September, compared with a negative Rs 40.66 crore in June and a negative Rs 83.85 lakh in September 2025. Purchases of stock-in-trade moved in the other direction, falling to Rs 15.04 crore from Rs 66.56 crore in June.

This reversal in inventory movements coincided with revenue increasing by Rs 14.77 crore from June to September, while profit before tax fell by Rs 32.74 lakh. Other expenditure was Rs 71.74 lakh in the September quarter, versus Rs 17.02 lakh a year earlier. Employee-benefit expense increased to Rs 10.49 lakh from Rs 6.67 lakh, while finance cost rose to Rs 25.74 lakh from Rs 24.01 lakh.

Depreciation and amortisation expense was Rs 2.15 lakh in the September quarter, compared with Rs 21.98 lakh a year earlier and Rs 2.15 lakh in June 2026. For the six months ended September 30, 2026, Shakti Press reported revenue from operations of Rs 70.10 crore, compared with Rs 4.32 crore in the corresponding 2025 period, and net profit of Rs 61.26 lakh, compared with Rs 19.59 lakh.

Why was Shakti Press's operating cash flow negative?

Shakti Press used Rs 56.53 crore in operating activities during the six months ended September 30, 2026 because working-capital movements exceeded the Rs 1.40 crore of profit before tax after cash-flow adjustments. The company recorded aggregate working-capital movements of negative Rs 57.93 crore for the half year, compared with negative Rs 9.67 crore for the year ended March 31, 2026.

The largest identified working-capital outflow was a Rs 25.25 crore increase in other assets. Trade receivables increased by Rs 15.76 crore and inventory increased by Rs 14.62 crore, while trade payables declined by Rs 4.44 crore. An Rs 2.80 crore increase in other current liabilities partly offset those movements, but operating cash flow remained negative.

The balance sheet reflects this build-up in current assets. Trade receivables stood at Rs 41.17 crore on September 30, 2026, up from Rs 25.41 crore on March 31, 2026, while inventory rose to Rs 27.30 crore from Rs 12.68 crore. Other current assets increased to Rs 25.89 crore from Rs 63.41 lakh, taking total current assets to Rs 94.75 crore from Rs 38.83 crore.

How did Shakti Press fund the increase in assets?

Shakti Press funded a substantial part of its balance-sheet expansion through equity and financing cash flows. Total equity rose to Rs 85.36 crore at September 30, 2026 from Rs 26.11 crore at March 31, 2026. Equity share capital increased to Rs 28.16 crore from Rs 3.52 crore, while other equity rose to Rs 57.19 crore from Rs 22.59 crore.

The cash-flow statement reported net cash generated from financing activities of Rs 57.19 crore during the six months ended September 30, 2026. It separately listed Rs 24.64 crore under issue of shares and Rs 9.35 crore under receipt of share application money. Cash and cash equivalents increased to Rs 39.17 lakh from Rs 9.34 lakh, producing a net increase of Rs 29.83 lakh despite the operating cash outflow.

Total assets rose to Rs 105.38 crore at September 30 from Rs 49.14 crore at the March year-end. Non-current borrowings declined to Rs 3.71 crore from Rs 4.13 crore, and current borrowings declined to Rs 9.23 crore from Rs 9.72 crore. Total current liabilities fell to Rs 16.32 crore from Rs 18.90 crore over the same period.

What did the independent reviewer say about Shakti Press's results?

The independent reviewer said matters specified in paragraph 4 had come to its attention that caused it to believe the unaudited results may not have disclosed information required under Regulation 33 of the Securities and Exchange Board of India listing regulations, or may contain a material misstatement. The supplied review report refers to paragraph 4 but does not include text identifying the matters concerned.

D P Sarda & Co. conducted its work under Standard on Review Engagement 2410, covering the unaudited standalone quarterly and six-month results to September 30, 2026. The firm stated that a review consists mainly of inquiries and analytical procedures, provides less assurance than an audit and does not result in an audit opinion. Its report was dated November 5, 2026.

The results state that there were no changes in Shakti Press's accounting policies. They also say that prior-period figures were regrouped or rearranged where necessary, which is relevant when comparing the September 2026 figures with the prior-year and March 2026 periods presented in the statements.

Conclusion

Shakti Press delivered a large increase in September-quarter revenue, with operations generating Rs 42.43 crore compared with Rs 1.52 crore a year earlier. However, net profit declined to Rs 18.52 lakh as total expenses reached Rs 42.18 crore, and the six-month cash-flow statement showed Rs 56.53 crore of cash used in operations following increases in receivables, inventory and other assets.

The next reporting period will indicate whether receivables of Rs 41.17 crore, inventory of Rs 27.30 crore and other current assets of Rs 25.89 crore are converted into operating cash. It will also be important to watch for any clarification of the review report's reference to matters in an unspecified paragraph 4, given that the supplied document does not set out those matters.