Shlokka Dyes September-half profit rises to Rs 5.2105 crore

Shlokka Dyes Limited reported net profit of Rs 5.2105 crore for the half year ended September 30, 2026, versus Rs 1.477 crore a year earlier, as revenue from operations reached Rs 71.6266 crore from Rs 31.3517 crore. Profit before tax also included a Rs 89.76093 lakh benefit from a depreciation-method change.

How did Shlokka Dyes perform in the September half?

Shlokka Dyes reported revenue from operations of Rs 71.6266 crore for the half year ended September 30, 2026, compared with Rs 31.3517 crore in the corresponding 2025 half. Total income was Rs 71.8042 crore, including Rs 17.76 lakh of other income, against Rs 31.6241 crore a year earlier. Revenue also exceeded Rs 50.5896 crore in the half year ended March 31, 2026.

Net profit was Rs 5.2105 crore, compared with Rs 1.477 crore in the September 2025 half and Rs 3.4826 crore in the March 2026 half. Profit before tax rose to Rs 6.3083 crore from Rs 1.7828 crore year on year, while total tax expense increased to Rs 1.0978 crore from Rs 30.58 lakh. Basic earnings per share, not annualised, were Rs 2.43, against Rs 0.98 a year earlier.

What drove Shlokka Dyes' reported earnings change?

Shlokka Dyes' total expenses rose to Rs 65.4959 crore in the September 2026 half from Rs 29.8413 crore a year earlier, alongside higher revenue. Material consumed increased to Rs 77.5348 crore from Rs 30.0317 crore, while other operating and manufacturing costs rose to Rs 4.8417 crore from Rs 76.23 lakh. A negative Rs 20.7815 crore inventory-change expense partly offset those outgoings in the profit statement.

Shlokka Dyes changed depreciation for property, plant and equipment from the written-down-value method to the straight-line method effective April 1, 2026. Management said the change lowered the half-year depreciation charge by Rs 89.76093 lakh and increased profit before tax by the same amount. Depreciation and amortisation reported for the half was Rs 61.33 lakh, down from Rs 1.6685 crore in the September 2025 half.

How did the Equinox Impex acquisition affect the comparison?

Shlokka Dyes acquired the business undertaking of Equinox Impex from managing director and promoter Vaibhav Pravinchandra Shah under a business transfer agreement dated July 31, 2026, effective August 1, 2026. The related-party slump-sale consideration was Rs 3.30 crore, comprising Rs 1.857478291 crore for the undertaking and Rs 1.442521709 crore for the EQUINOX trademark.

The September-half results include the acquired undertaking's operations only from August 1 to September 30, 2026, but do not separately quantify its revenue, profit or assets. The rise in revenue from Rs 31.3517 crore in the September 2025 half to Rs 71.6266 crore therefore includes two months of acquired operations. Intangible assets stood at Rs 1.4425 crore at September 30, 2026, while no intangible-assets balance was shown at March 31, 2026.

What changed in Shlokka Dyes' working capital and funding?

Shlokka Dyes' inventory increased to Rs 55.9072 crore at September 30, 2026 from Rs 29.6269 crore at March 31, 2026. Trade receivables decreased to Rs 53.4199 crore from Rs 54.0784 crore, while trade payables increased to Rs 27.2717 crore from Rs 14.6171 crore. Its cash-flow statement recorded a Rs 26.2804 crore working-capital outflow from increased inventories during the half year.

Short-term borrowings rose to Rs 25.7997 crore from Rs 16.2752 crore, while long-term borrowings declined to Rs 6.4558 crore from Rs 10.4829 crore. Other current liabilities increased to Rs 11.0724 crore from Rs 3.1819 crore. Net cash inflow from operating activities was Rs 2.7296 crore, while investing activities used Rs 7.4746 crore and financing activities provided Rs 3.3381 crore.

What does Shlokka Dyes' balance sheet and review show?

Shlokka Dyes' total assets increased to Rs 162.7512 crore at September 30, 2026 from Rs 131.2752 crore at March 31, 2026. Shareholders' funds rose to Rs 89.7407 crore from Rs 85.3637 crore, with reserves and surplus at Rs 68.3322 crore against Rs 63.9552 crore. Paid-up share capital remained Rs 21.4085 crore, while property, plant and equipment rose to Rs 19.3689 crore from Rs 19.1552 crore.

Patel & Panchal conducted a limited review of the standalone September 2026 results rather than an audit. In its report dated November 3, 2026, the auditor said nothing had come to its attention indicating that the statement lacked required disclosures or contained a material misstatement. The report highlighted both the Rs 3.30 crore Equinox Impex acquisition and the Rs 89.76093 lakh depreciation-estimate effect without modifying its conclusion.

Conclusion

Shlokka Dyes reported higher revenue and net profit in the half year ended September 30, 2026, with revenue reaching Rs 71.6266 crore and net profit Rs 5.2105 crore. The comparison with the prior year is affected by the inclusion of Equinox Impex from August 1, 2026 and by the depreciation-method change, while inventory rose by Rs 26.2803 crore from March 31, 2026.

The next disclosure to watch is the operating contribution of the Equinox Impex undertaking over a full reporting period and the cash conversion of the additional inventory. Shlokka Dyes also disclosed Rs 7.23 crore of unutilised initial public offer proceeds earmarked for debt repayment at September 30, 2026, while Rs 8.2544 crore of excess proceeds had been used for working-capital requirements.