Simran Farms profit falls 24% as September sales climb 40%

Simran Farms Limited reported standalone net profit of Rs 62.40 lakh for the quarter ended September 30, 2026, down 23.5% from the June quarter, while total revenue rose 39.7% year-on-year to Rs 264.0834 crore. Raw-material consumption increased to Rs 227.7816 crore, limiting the increase in profit before tax.

Why did Simran Farms’ September-quarter profit fall?

Simran Farms’ standalone profit fell sequentially because total expenses rose to Rs 263.0719 crore in the September 2026 quarter from Rs 213.2555 crore in the June 2026 quarter, exceeding the increase in total revenue to Rs 264.0834 crore from Rs 214.4292 crore. Profit before tax declined to Rs 101.15 lakh from Rs 117.37 lakh, while net profit fell by Rs 19.18 lakh to Rs 62.40 lakh.

The September-quarter comparison differs depending on the period used. Against September 2025, total revenue increased by Rs 74.9931 crore from Rs 189.0903 crore, while standalone net profit increased by Rs 27.98 lakh from Rs 34.42 lakh. Against the immediately preceding June 2026 quarter, revenue increased by Rs 49.6542 crore but net profit declined by 23.5%.

The company reported no exceptional or prior-period items in the September 2026 quarter, June 2026 quarter or September 2025 quarter. It also reported no profit or loss from discontinuing operations in those periods, meaning the sequential change in reported profit was not affected by those items.

How did raw-material costs affect Simran Farms’ quarterly result?

Raw-material consumption rose faster than revenue on a sequential basis, increasing 24.2% to Rs 227.7816 crore in the September quarter while total revenue increased 23.2% to Rs 264.0834 crore. Raw-material consumption was Rs 183.3798 crore in the June quarter and Rs 157.5863 crore in the September 2025 quarter.

Calculated against total revenue, raw-material consumption represented 86.3% in the September 2026 quarter, compared with 85.5% in the June 2026 quarter and 83.3% a year earlier. This higher share coincided with a decline in profit before tax to Rs 101.15 lakh from Rs 117.37 lakh sequentially, despite the revenue increase.

Other expenses increased to Rs 27.4622 crore from Rs 22.9206 crore in June 2026 and Rs 23.0498 crore in September 2025. Finance cost was Rs 95.36 lakh in the latest quarter, compared with Rs 70.67 lakh in June, while depreciation was Rs 45.47 lakh versus Rs 38.27 lakh in the preceding quarter.

Income from operations, excluding other income, was Rs 263.5413 crore in the September 2026 quarter, compared with Rs 213.9343 crore in June 2026. Other income was Rs 54.21 lakh, compared with Rs 49.49 lakh in the preceding quarter, and therefore did not offset the Rs 16.22 lakh sequential reduction in profit before tax.

What do Simran Farms’ half-year results show?

Simran Farms’ standalone half-year net profit increased to Rs 143.98 lakh for the half year ended September 30, 2026, from Rs 105.88 lakh in the corresponding prior-year half year. Total revenue increased to Rs 478.5126 crore from Rs 394.5513 crore, while profit before tax rose to Rs 218.52 lakh from Rs 150.76 lakh.

Raw-material consumption rose by Rs 78.7960 crore in the half year, broadly accounting for most of the Rs 83.9613 crore increase in revenue. Finance cost declined to Rs 166.03 lakh from Rs 177.61 lakh, while basic earnings per share, or EPS, increased to Rs 2.99 from Rs 2.79.

Operating cash flow was negative Rs 9.8203 crore for the half year ended September 30, 2026, compared with negative Rs 31.34 lakh a year earlier. The cash-flow statement recorded a Rs 48.3829 crore inventory increase and a Rs 6.2757 crore increase in trade receivables, while borrowings increased by Rs 23.1043 crore and trade payables by Rs 19.2580 crore.

What business and reporting scope does Simran Farms disclose?

Simran Farms reports poultry breeding and farming as its primary activity and says it has no identifiable operating segment requiring disclosure under Indian Accounting Standard 108, or Ind AS 108. The September 2026 result therefore does not provide a revenue or profit split by poultry category, geography or another operating segment.

The consolidated results include subsidiary Puregene Biotech Limited. Consolidated September-quarter net profit was Rs 64.99 lakh, compared with standalone net profit of Rs 62.40 lakh, while consolidated total revenue was also Rs 264.0834 crore. Consolidated half-year net profit was Rs 148.50 lakh, compared with standalone half-year profit of Rs 143.98 lakh.

The board approved the unaudited results on November 14, 2026, after review and recommendation by the audit committee. The standalone limited-review report said nothing had come to the auditor’s attention that caused it to believe the statement had not disclosed the required information or contained a material misstatement.

The standalone balance sheet showed inventories of Rs 174.5670 crore on September 30, 2026, compared with Rs 126.1841 crore on March 31, 2026. Standalone total borrowings were Rs 67.8332 crore at September-end, comprising Rs 12.3520 crore of non-current borrowings and Rs 55.4812 crore of current borrowings.

Conclusion

Simran Farms delivered higher September-quarter revenue and higher year-on-year profit, but its standalone net profit declined from the preceding quarter as raw-material consumption increased to 86.3% of total revenue. The half-year result also shows profit growth to Rs 143.98 lakh, although the accompanying cash-flow statement records negative operating cash flow of Rs 9.8203 crore.

The next results filing will show whether raw-material consumption, inventories and receivables move differently relative to revenue after September 30, 2026. Investors can also track the company’s disclosed borrowing balance of Rs 67.8332 crore and whether operating cash flow changes from the first-half outflow.