Sky Industries Q2 profit falls 18% as revenue declines year on year

Sky Industries Limited reported consolidated net profit of Rs 1.4247 crore for the quarter ended September 30, 2026, down 17.6% year on year, after revenue from operations declined 8.7% to Rs 22.7359 crore; both measures nevertheless rose from the quarter ended June 30, 2026.

How did Sky Industries perform in the September 2026 quarter?

Sky Industries reported lower year-on-year income and profit in the September 2026 quarter. Revenue from operations fell to Rs 22.7359 crore from Rs 24.8933 crore in the quarter ended September 30, 2025, while total income decreased to Rs 22.9082 crore from Rs 24.9377 crore. Other income, however, rose to Rs 17.24 lakh from Rs 4.14 lakh.

Total expenses declined to Rs 20.8211 crore from Rs 22.6129 crore, but the reduction was smaller than the fall in total income. Profit before tax consequently fell to Rs 2.0871 crore from Rs 2.3248 crore. Current tax expense was Rs 49.51 lakh, against Rs 60.21 lakh a year earlier, while deferred tax was an expense of Rs 16.74 lakh after a credit of Rs 73,000 in the prior-year quarter.

The net profit figure includes Rs 1.4244 crore attributable to owners and Rs 30,000 attributable to non-controlling interest. Sky Industries reported no other comprehensive income for the September 2026 quarter, leaving total comprehensive income at Rs 1.4247 crore, compared with Rs 1.73 crore in the September 2025 quarter.

What changed from the June 2026 quarter?

Sky Industries improved sequentially in the September 2026 quarter, with revenue from operations rising 18.7% from Rs 19.1501 crore in the June 2026 quarter. Total income rose by Rs 3.2546 crore quarter on quarter, even though other income declined from Rs 50.36 lakh in June to Rs 17.24 lakh in September.

Net profit after tax increased 3.8% from Rs 1.3721 crore in the June quarter to Rs 1.4247 crore in the September quarter. Profit before tax rose by Rs 30.89 lakh to Rs 2.0871 crore. Basic and diluted earnings per equity share were Rs 1.79, compared with Rs 1.74 in June and Rs 2.19 in the September 2025 quarter.

Cost movements were mixed between the two quarters. Cost of materials consumed decreased to Rs 7.7372 crore from Rs 10.1284 crore, and purchases of stock in trade fell to Rs 1.4182 crore from Rs 3.6896 crore. Changes in inventories were an expense of Rs 4.4831 crore after a Rs 2.3807 crore reduction in June, while other expenses dropped to Rs 1.3361 crore from Rs 3.5589 crore.

What do Sky Industries' six-month results show?

Sky Industries reported net profit after tax of Rs 2.8041 crore for the six months ended September 30, 2026, compared with Rs 2.77 crore in the corresponding period of 2025. Profit before tax rose to Rs 3.8653 crore from Rs 3.6524 crore, while total expenses declined to Rs 38.6966 crore from Rs 40.934 crore.

Total income for the six-month period declined to Rs 42.5619 crore from Rs 44.5863 crore. The filing's six-month revenue-from-operations line is inconsistently rendered and does not reconcile arithmetically with the stated total-income figure, so the disclosed total-income comparison provides the clearer measure of the period-on-period change.

Tax expense for the six months was Rs 1.0612 crore, comprising Rs 1.0510 crore of current tax and Rs 1.02 lakh of deferred tax. In the prior-year six-month period, current tax was Rs 88.57 lakh and deferred tax was a credit of Rs 34,000. Basic and diluted earnings per share for the six months were Rs 3.53, compared with Rs 3.51 a year earlier.

What does Sky Industries' balance sheet show?

Sky Industries' consolidated total assets rose to Rs 109.5086 crore at September 30, 2026 from Rs 91.259 crore at March 31, 2026. Property, plant and equipment increased to Rs 23.8943 crore from Rs 10.2864 crore, while capital work in progress rose to Rs 34.9945 crore from Rs 29.9364 crore.

Working-capital balances also increased over the six months. Inventories were Rs 22.612 crore at September 30, compared with Rs 21.581 crore at March 31, and trade receivables increased to Rs 14.4789 crore from Rs 12.4481 crore. Cash and cash equivalents were Rs 98.90 lakh at September 30, against Rs 64.91 lakh at the start of the financial year.

The borrowing mix shifted towards non-current liabilities. Non-current borrowings rose to Rs 29.8108 crore from Rs 16.7095 crore, while current borrowings declined to Rs 10.4922 crore from Rs 14.6908 crore. Total equity increased to Rs 52.5578 crore from Rs 50.4888 crore, including Rs 44.6128 crore of other equity at September 30.

How did Sky Industries' cash flows and capital spending change?

Sky Industries reported net operating cash inflow of Rs 9.6273 crore for the six months ended September 30, 2026, compared with Rs 95.50 lakh in the prior-year period. Cash generated from operations was Rs 10.1097 crore, versus a cash outflow of Rs 92.99 lakh a year earlier, with trade payables increasing by Rs 6.9987 crore during the 2026 period.

Investing activities used Rs 16.9341 crore, compared with an outflow of Rs 44.52 lakh in the six months ended September 30, 2025. Purchases of property, plant and equipment and intangible assets, including capital work in progress, were Rs 19.1084 crore, compared with Rs 1.4753 crore. Investment purchases were Rs 5.8361 crore and investment sales were Rs 10.0012 crore.

Financing activities generated Rs 7.4336 crore of net cash inflow, supported by Rs 13.1013 crore of long-term borrowings taken during the period, compared with Rs 35.39 lakh a year earlier. Net cash increased by Rs 12.69 lakh, taking cash and cash equivalents to Rs 77.60 lakh at September 30, 2026. The consolidated results were approved by the board on November 5, 2026 and were subject to a limited review.

Conclusion

Sky Industries' September-quarter result combined sequential improvement with a year-on-year contraction. The Rs 2.1574 crore decline in quarterly operating revenue from September 2025 exceeded the reduction in expenses, producing a Rs 30.53 lakh fall in net profit, although six-month profit before tax increased by Rs 21.29 lakh.

The next financial disclosure will show whether the September-quarter revenue decline persists and how the Rs 19.1084 crore of six-month capital-asset and intangible-asset purchases affect operations. The filing identifies manufacture and trading of narrow fabrics as Sky Industries' single primary business segment, but discloses no management target or explanation for the revenue movement.