Sigachi revenue rises 18% while September profit falls 17%

Sigachi Industries Limited reported consolidated revenue from operations of Rs 130.46 crore for the quarter ended September 30, 2026, up 18% from Rs 110.48 crore a year earlier. Sigachi’s profit for the period fell 17% to Rs 8.78 crore because the September 2025 comparison included a Rs 4.66 crore exceptional gain, while profit before exceptional items rose to Rs 11.07 crore from Rs 2.78 crore.

Why did Sigachi’s reported quarterly profit decline?

Sigachi’s reported quarterly profit declined because the September 2025 comparison included a Rs 4.66 crore exceptional profit that did not recur in the September 2026 quarter. Profit for the period was Rs 8.78 crore in the latest quarter, compared with Rs 10.53 crore a year earlier. The latest quarter had no exceptional item, while the year-earlier profit before tax was Rs 7.44 crore after the exceptional gain.

Profit before exceptional items increased to Rs 11.07 crore in September 2026 from Rs 2.78 crore in September 2025. Total income rose to Rs 130.68 crore from Rs 112.98 crore, while total expenses increased to Rs 119.61 crore from Rs 110.20 crore. The increase in total income exceeded the rise in expenses before exceptional items.

Tax expenses also changed the year-on-year comparison. Current tax was Rs 2.91 crore in the September 2026 quarter, compared with Rs 0.48 crore a year earlier, while deferred tax was a credit of Rs 0.63 crore against a Rs 3.57 crore credit. Basic and diluted earnings per share were both Rs 0.27, compared with Rs 0.28 in the prior-year quarter.

How did Sigachi’s revenue and segments change from June?

Sigachi’s consolidated revenue from operations rose 8% sequentially to Rs 130.46 crore in the September 2026 quarter from Rs 121.27 crore in the June 2026 quarter. Total income was Rs 130.68 crore, compared with Rs 122.28 crore in the preceding quarter, as other income declined to Rs 0.22 crore from Rs 1.00 crore.

The pharmaceuticals segment generated Rs 116.52 crore of revenue in the September quarter, compared with Rs 108.21 crore in the June quarter. Operational and Management revenue rose to Rs 13.94 crore from Rs 13.06 crore. Pharmaceuticals accounted for most of the Rs 9.18 crore sequential rise in consolidated revenue.

Pharmaceuticals segment profit before interest and tax increased to Rs 12.93 crore from Rs 10.82 crore, while Operational and Management segment profit declined to Rs 1.99 crore from Rs 2.29 crore. Total segment result rose to Rs 14.92 crore from Rs 13.10 crore. Finance costs increased to Rs 3.85 crore from Rs 3.01 crore, leaving profit before tax at Rs 11.07 crore against Rs 10.09 crore.

What did Sigachi report for the first half?

Sigachi reported first-half revenue from operations of Rs 251.73 crore for the half year ended September 30, 2026, up 5% from Rs 238.73 crore in the corresponding 2025 half year. Total income increased to Rs 252.96 crore from Rs 245.16 crore, despite other income declining to Rs 1.23 crore from Rs 6.43 crore.

The half-year reported comparison was affected by exceptional items in the earlier period. Sigachi recorded no exceptional item in the half year ended September 2026, compared with an exceptional loss of Rs 116.35 crore in the prior-year half year. Profit before tax was consequently Rs 21.16 crore, compared with a loss before tax of Rs 93.56 crore a year earlier.

Profit for the September 2026 half year was Rs 16.93 crore, compared with a loss of Rs 90.44 crore in the prior-year half year. However, profit before exceptional items was Rs 21.16 crore, compared with Rs 22.79 crore in the corresponding 2025 period. The reported return to profit therefore coincided with the absence of the earlier exceptional loss.

How did Sigachi’s working capital and borrowings change?

Sigachi’s consolidated inventory was Rs 95.09 crore at September 30, 2026, up from Rs 73.59 crore at March 31, 2026. Trade receivables increased to Rs 234.14 crore from Rs 224.20 crore. Current assets rose to Rs 412.36 crore from Rs 389.35 crore over the same period.

Current borrowings increased to Rs 150.25 crore at September 30 from Rs 135.56 crore at March 31. Cash and cash equivalents declined to Rs 16.96 crore from Rs 20.90 crore. Total equity increased to Rs 546.77 crore from Rs 528.88 crore, while total assets rose to Rs 874.10 crore from Rs 841.17 crore.

The consolidated cash-flow statement recorded operating cash inflow of Rs 8.08 crore for the half year ended September 30, 2026, compared with an operating cash outflow of Rs 72.74 crore a year earlier. Inventory used Rs 21.50 crore and trade receivables used Rs 9.94 crore during the latest half year. Net proceeds from short-term borrowings were Rs 14.68 crore, compared with Rs 24.82 crore in the corresponding 2025 period.

What capital allocation and review matters did Sigachi disclose?

Sigachi disclosed Rs 32.30 crore of unutilised net initial public offering proceeds allocated to establishing a CCS project at Dahej, Gujarat, at September 30, 2026. The filing states that Rs 28.16 crore allocated for microcrystalline cellulose, or MCC, capacity expansion at Dahej was fully utilised by the fourth quarter of FY23. Total IPO proceeds listed in the disclosure were Rs 89.70 crore.

The unaudited consolidated results for the quarter and half year ended September 30, 2026 were reviewed by the audit committee and approved by Sigachi’s board on October 31, 2026. The consolidated statement includes Sigachi US INC, Sigachi MENAFZCO and TrimaxBio Sciences Private Limited. The auditor issued a limited-review conclusion and stated that its conclusion was not modified in respect of reliance on management-certified interim subsidiary results.

Conclusion

Sigachi’s September-quarter revenue increase coincided with a substantial rise in profit before exceptional items, led by pharmaceuticals revenue of Rs 116.52 crore and segment profit of Rs 12.93 crore. Reported profit nevertheless declined to Rs 8.78 crore because the September 2025 comparison included a Rs 4.66 crore exceptional gain, while inventory, receivables and current borrowings increased from March 2026.

The disclosed item to watch next is the use of Rs 32.30 crore of unutilised IPO proceeds allocated to the CCS project at Dahej, Gujarat. The next results will also indicate whether inventory of Rs 95.09 crore and receivables of Rs 234.14 crore continue to affect operating cash flow and short-term borrowing needs after September 30, 2026.