SK Minerals September Profit Falls 30% Despite Revenue Recovery

SK Minerals & Additives Limited reported net profit of Rs 3.7782 crore for the quarter ended September 30, 2026, down 29.63% from a year earlier, while revenue from operations recovered 15.5% sequentially to Rs 74.4387 crore. SK Minerals’ September revenue remained below Rs 75.7178 crore recorded in the September 2025 quarter.

Why did SK Minerals’ September-quarter profit fall?

SK Minerals’ September-quarter profit fell as total expenses increased while revenue from operations declined from the year-earlier quarter. Net profit was Rs 3.7782 crore in the quarter ended September 30, 2026, compared with Rs 5.369 crore in the corresponding quarter of 2025, while revenue from operations fell 1.69% from Rs 75.7178 crore to Rs 74.4387 crore.

Profit before tax declined 27.12% to Rs 5.3045 crore from Rs 7.2785 crore. Total revenue, which includes other income, was Rs 74.7737 crore, compared with Rs 75.9353 crore a year earlier, whereas total expenses increased 1.18% to Rs 69.4692 crore from Rs 68.6568 crore. There were no exceptional items in either September quarter.

Finance costs rose 55.97% to Rs 2.17 crore from Rs 1.3913 crore, and employee benefit expenses increased 72.93% to Rs 2.5887 crore from Rs 1.497 crore. Cost of material consumed rose 38.14% to Rs 15.0313 crore, while purchase of stock in trade declined 3.2% to Rs 55.3383 crore from Rs 57.1647 crore.

Tax expense decreased to Rs 1.5263 crore from Rs 1.9095 crore, but that reduction did not offset the fall in pre-tax profit. Basic earnings per share, or EPS, was Rs 3.11 in the September 2026 quarter, against Rs 5.96 a year earlier; diluted EPS was Rs 2.64, compared with Rs 5.96.

How much did SK Minerals’ revenue recover from June?

SK Minerals’ revenue from operations rose 15.5% from the June 2026 quarter to Rs 74.4387 crore in the September 2026 quarter. Revenue was Rs 64.4493 crore in the quarter ended June 30, 2026, and the September result was also supported by Rs 8.2382 crore of sales outside India, against nil overseas sales in June.

Total revenue increased to Rs 74.7737 crore in September from Rs 64.8101 crore in June, including other income of Rs 33.50 lakh in September and Rs 36.08 lakh in June. Net profit increased 2.04% sequentially from Rs 3.7028 crore, while profit before tax rose 2.62% from Rs 5.1692 crore.

Finance costs increased 24.05% sequentially from Rs 1.7493 crore to Rs 2.17 crore. Total expenses rose to Rs 69.4692 crore from Rs 59.6409 crore, while the inventory-change line was a negative Rs 10.3673 crore in September, compared with a negative Rs 1.2006 crore in June.

Sales within India were Rs 66.2005 crore in the September 2026 quarter, compared with Rs 64.4493 crore in June and Rs 75.7178 crore a year earlier. SK Minerals reported one business segment, covering trading of industrial chemicals and manufacturing of food, feed and polymer additives, so it did not provide a business-segment profit split.

For the half year ended September 30, 2026, revenue from operations increased 26.39% to Rs 138.888 crore from Rs 109.8914 crore. Net profit increased 6.6% to Rs 7.481 crore from Rs 7.0182 crore, while finance costs rose to Rs 3.9193 crore from Rs 2.1224 crore.

What changed in SK Minerals’ borrowings and working capital?

SK Minerals’ combined long-term and short-term borrowings increased to Rs 133.6723 crore at September 30, 2026, from Rs 100.2776 crore at March 31, 2026. Long-term borrowings were Rs 21.9609 crore, up from Rs 16.5233 crore, and short-term borrowings were Rs 111.7114 crore, up from Rs 83.7543 crore.

Inventories rose to Rs 38.3977 crore from Rs 24.8471 crore during the six months to September 30. Trade receivables increased to Rs 59.6976 crore from Rs 53.5485 crore, while short-term loans and advances rose to Rs 83.5116 crore from Rs 48.3496 crore. Cash and cash equivalents decreased to Rs 1.5997 crore from Rs 1.9069 crore.

Net cash used in operating activities was Rs 79.8557 crore for the period ended September 30, 2026, compared with Rs 74.6082 crore for the year ended March 31, 2026. The cash-flow statement reported operating profit before working-capital changes of Rs 14.2392 crore, followed by cash used in operations of Rs 81.5557 crore before the reported tax-payment line of Rs 1.70 crore.

The reported working-capital movements included a Rs 46.3487 crore increase in other current and non-current assets, a Rs 21.5577 crore increase in non-current investments and a Rs 13.5506 crore increase in inventory. Net cash used in investing activities was Rs 4.6336 crore, including Rs 5.3112 crore spent on property, plant and equipment.

How are SK Minerals’ warrant and IPO proceeds being used?

SK Minerals received Rs 54.518 crore on allotment of 54.93 lakh convertible warrants at Rs 397 per warrant during the September 2026 quarter. The warrants have a revised aggregate issue size of Rs 218.0721 crore, and the receipt represents 25% of the warrant issue price paid on allotment.

The balance 75%, amounting to Rs 163.5541 crore, is payable when warrant holders seek conversion into equity shares. The source states that conversion may occur in one or more tranches at subscribers’ option, within a maximum of 18 months from the allotment date.

Of the Rs 54.518 crore received, Rs 32.7108 crore was used for general corporate purposes, including customs duty payments and repayment of working-capital loans. Rs 21.8856 crore, including fixed-deposit interest of Rs 7.84 lakh, was unutilised as of September 30, 2026 and held in the monitoring agency account and fixed deposits.

SK Minerals allocated Rs 185.3613 crore of revised warrant proceeds to expansion and growth but reported nil utilisation under that object at September 30, 2026. The revised amount was lower than the Rs 218.35 crore originally disclosed because the warrants were undersubscribed at allotment.

Separately, SK Minerals completed its initial public offering, or IPO, on October 14, 2025, with an aggregate issue size of Rs 41.148 crore. Net IPO proceeds were Rs 38.748 crore, of which Rs 34.091 crore had been used by September 30, 2026; Rs 4.657 crore for plant and machinery remained unutilised and was deployed in fixed deposits.

Conclusion

SK Minerals’ September 2026 results show that revenue recovered from the June quarter, aided by Rs 8.2382 crore of sales outside India, but profitability remained below the year-earlier level. The half-year comparison also shows revenue rising 26.39% while net profit rose 6.6%, alongside higher finance costs, expanded working-capital balances and negative operating cash flow of Rs 79.8557 crore.

The next disclosed funding milestone is potential conversion of the 54.93 lakh warrants within 18 months of allotment, which would make the Rs 163.5541 crore balance payable. SK Minerals also reported nil deployment from the Rs 185.3613 crore expansion-and-growth allocation and Rs 4.657 crore of IPO proceeds still assigned to plant and machinery at September 30, 2026.