Smruthi Organics Limited first-half profit rises over fourfold

Smruthi Organics reported continuing-operations profit after tax of Rs 4.67 crore for the half year ended September 30, 2026, more than four times Rs 1.09 crore a year earlier, as revenue from operations rose 19% to Rs 60.01 crore and profit before tax reached Rs 6.24 crore.

How did Smruthi Organics perform in the first half?

Smruthi Organics increased continuing-operations profit after tax by about 330% in the half year ended September 30, 2026. Revenue from operations rose to Rs 60.01 crore from Rs 50.37 crore in the corresponding 2025 half, while total income reached Rs 60.06 crore, including Rs 4.43 lakh of other income.

Profit before tax from continuing operations rose to Rs 6.24 crore from Rs 1.46 crore. The statement does not show exceptional items in either first-half comparison, so the reported figure before exceptional items and tax was also Rs 6.24 crore in 2026, against Rs 1.46 crore a year earlier.

Smruthi Organics recorded continuing-operations tax expense of Rs 1.57 crore in the 2026 first half, compared with Rs 37.46 lakh in the prior-year period. Basic and diluted earnings per share from continuing operations were Rs 4.08 each, compared with Rs 0.95 each in the half year ended September 30, 2025.

What changed in Smruthi Organics’ costs and operating result?

Smruthi Organics’ total expenses rose by Rs 4.81 crore to Rs 53.82 crore, less than the Rs 9.59 crore increase in total income. This difference resulted in continuing profit before tax of Rs 6.24 crore, compared with Rs 1.46 crore in the prior-year half.

Material-consumption cost increased to Rs 30.91 crore from Rs 23.09 crore, while employee-benefit expense rose to Rs 9.08 crore from Rs 8.27 crore. Depreciation and amortisation increased to Rs 3.38 crore from Rs 2.92 crore, and other expenses edged down to Rs 12.37 crore from Rs 12.42 crore.

The inventory-change line was a negative Rs 2.51 crore in the half year ended September 30, 2026, compared with a positive Rs 1.19 crore expense a year earlier. Finance costs also fell to Rs 61.65 lakh from Rs 1.12 crore, but the filing does not provide a price, volume or product-wise revenue analysis for the period.

How did Smruthi Organics’ September quarter compare with earlier periods?

Smruthi Organics’ September 2026 quarter was lower than both the preceding quarter and the year-earlier quarter on continuing profit after tax. Revenue from operations was Rs 30.71 crore, compared with Rs 31.52 crore in the September 2025 quarter and Rs 29.30 crore in the June 2026 quarter.

Continuing profit before tax for the September 2026 quarter was Rs 2.31 crore, versus Rs 2.94 crore a year earlier and Rs 3.93 crore in June 2026. Continuing profit after tax was Rs 1.72 crore, compared with Rs 2.13 crore in September 2025 and Rs 2.94 crore in the immediately preceding quarter.

September-quarter material consumption was Rs 16.98 crore, up from Rs 11.08 crore a year earlier and Rs 13.92 crore in June 2026. Finance cost was Rs 30.55 lakh, close to Rs 31.10 lakh in June and below Rs 65.98 lakh in September 2025; basic continuing earnings per share were Rs 1.50, against Rs 2.57 in June.

What do Smruthi Organics’ balance sheet and cash flow show?

Smruthi Organics had total assets of Rs 115.06 crore at September 30, 2026, compared with Rs 103.55 crore at March 31, 2026. Current assets increased to Rs 62.42 crore from Rs 52.68 crore, led by inventories of Rs 31.98 crore and trade receivables of Rs 27.14 crore.

Inventories were Rs 28.35 crore and trade receivables were Rs 19.30 crore at March 31, 2026, so both balances increased during the first half. Cash and cash equivalents fell to Rs 5.61 lakh at September 30 from Rs 1.71 crore at the beginning of the period.

Net operating cash flow was Rs 6.19 crore for the half year, below Rs 17.03 crore in the prior-year half. The cash-flow statement shows Rs 7.85 crore used by the increase in trade receivables and Rs 3.64 crore used by the increase in inventories, while fixed-asset, capital work-in-progress and capital-advance purchases used Rs 5.14 crore.

Current borrowings stood at Rs 8.15 crore at September 30, 2026, up from Rs 5.69 crore at March 31, while non-current borrowings declined to nil from Rs 2.67 crore. Financing activities used Rs 2.70 crore, including Rs 1.72 crore of dividend payments and Rs 2.73 crore of long-term borrowing repayments.

How are discontinued operations affecting Smruthi Organics’ earnings?

Smruthi Organics’ discontinued Formulations Marketing Division reduced first-half net profit by Rs 7.64 lakh after tax. Continuing profit after tax was Rs 4.67 crore, while net profit including the discontinued operation was Rs 4.59 crore; the discontinued loss was Rs 12.51 lakh in the comparable 2025 half.

The filing says the Formulations Marketing Division had no income in the 2026 first half, compared with Rs 21.48 lakh a year earlier, and its expenses fell to Rs 10.21 lakh from Rs 38.19 lakh. Its assets consist of residual receivables under recovery and are stated net of loss allowance.

Smruthi Organics identifies Bulk Drugs and Intermediates, described as the active pharmaceutical ingredients or API division, as its only operating segment at September 30, 2026. The statutory auditor issued an unmodified limited-review conclusion dated November 13, 2026 on the unaudited quarterly and half-year results.

Conclusion

Smruthi Organics’ first-half figures show that a 19% increase in revenue to Rs 60.01 crore was accompanied by a much larger rise in continuing profit after tax to Rs 4.67 crore. Lower finance costs and the change in the inventory line accompanied the improvement, although September-quarter continuing profit after tax of Rs 1.72 crore was below both the June 2026 and September 2025 quarters.

The next results will show whether first-half profitability is maintained while inventories stand at Rs 31.98 crore and trade receivables at Rs 27.14 crore. Investors can also watch the recovery of residual receivables from the discontinued Formulations Marketing Division, which recorded a Rs 7.64 lakh first-half loss after tax.