Sonal Adhesives first-half profit falls to Rs 43.15 lakh

Sonal Adhesives Limited reported standalone unaudited net profit of Rs 43.15 lakh for the half year ended September 30, 2026, down from Rs 71.28 lakh in the corresponding prior-year half. The six-month decline occurred even as Sonal Adhesives’ September-quarter profit rose to Rs 20.26 lakh from Rs 16.53 lakh in the June quarter.

Why did Sonal Adhesives’ first-half profit fall?

Sonal Adhesives’ first-half net profit fell to Rs 43.15 lakh for the half year ended September 30, 2026, from Rs 71.28 lakh for the half year ended September 30, 2025. The difference was Rs 28.13 lakh, while profit before tax for the latest half year was Rs 59.89 lakh and total tax expense was Rs 16.74 lakh.

The filing shows that earnings improved sequentially during the six months but remained below the prior-year comparison. Net profit rose by Rs 3.73 lakh to Rs 20.26 lakh in the quarter ended September 30, 2026, from Rs 16.53 lakh in the quarter ended June 30, 2026. However, September-quarter profit was Rs 2.63 lakh lower than Rs 22.89 lakh in the quarter ended September 30, 2025.

The results are standalone and unaudited, and were approved by Sonal Adhesives’ board on November 13, 2026. The board meeting began at 4.00 p.m. and concluded at 5.15 p.m. The company filed the outcome under Regulations 30 and 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015.

How did Sonal Adhesives’ earnings per share change?

Sonal Adhesives reported basic and diluted earnings per share of Rs 0.71 for the half year ended September 30, 2026, compared with Rs 1.18 for the corresponding half year ended September 30, 2025. The Rs 0.47 per-share reduction accompanied the fall in six-month net profit from Rs 71.28 lakh to Rs 43.15 lakh.

For the quarter ended September 30, 2026, basic and diluted earnings per share were Rs 0.33, versus Rs 0.44 in the quarter ended June 30, 2026 and Rs 0.38 in the quarter ended September 30, 2025. Sonal Adhesives stated that the per-share figures were not annualised, meaning the quarterly and half-year numbers were presented only for their respective reported periods.

Equity share capital was Rs 6.061 crore at September 30, 2026, unchanged from March 31, 2026. Other equity rose to Rs 4.7274 crore from Rs 4.2899 crore over the same period, taking total equity to Rs 10.7884 crore from Rs 10.3509 crore. The increase in other equity was Rs 43.85 lakh.

What changed in Sonal Adhesives’ balance sheet?

Sonal Adhesives’ total assets were Rs 50.8554 crore at September 30, 2026, compared with Rs 49.031 crore at March 31, 2026. Current assets increased by Rs 2.0521 crore to Rs 36.5588 crore, while non-current assets declined by Rs 22.87 lakh to Rs 14.2966 crore.

Inventories were the largest disclosed movement among current assets, increasing to Rs 22.9532 crore at September 30 from Rs 15.7581 crore at March 31. That was an increase of Rs 7.1951 crore. In contrast, trade receivables declined to Rs 9.3947 crore from Rs 14.2148 crore, a reduction of Rs 4.8201 crore.

Cash and cash equivalents fell to Rs 4.81 lakh at September 30, 2026, from Rs 9.35 lakh at March 31, 2026. Current borrowings decreased by Rs 91.91 lakh to Rs 14.688 crore, while non-current borrowings fell by Rs 28.78 lakh to Rs 5.8817 crore. Total current liabilities nevertheless increased to Rs 33.3886 crore from Rs 31.6974 crore.

What does Sonal Adhesives’ cash-flow statement show?

Sonal Adhesives’ cash-flow statement lists Rs 1.5224 crore as net cash from operating activities for the period ended September 30, 2026, compared with net cash used of Rs 7.0136 crore for the year ended March 31, 2026. Cash generated from operations in the latest period was Rs 1.7579 crore, and income tax paid, net of refunds, was Rs 23.56 lakh.

Working-capital movements included a Rs 7.1951 crore increase in inventories and a Rs 4.6796 crore decrease in trade receivables during the period ended September 30, 2026. Trade payables increased by Rs 3.2212 crore, while other current financial liabilities decreased by Rs 74.01 lakh. These movements followed operating profit before working-capital changes of Rs 2.2452 crore.

Investing activities produced Rs 37 lakh in the cash-flow statement, with deposits matured of Rs 65.78 lakh, capital expenditure on fixed assets of Rs 30.27 lakh and interest received of Rs 1.49 lakh. Financing activities used Rs 1.9377 crore, comprising a Rs 91.91 lakh decrease in short-term borrowings, a Rs 28.78 lakh decrease in long-term borrowings and finance cost of Rs 73.08 lakh.

The combined movements resulted in a Rs 4.54 lakh decrease in cash and cash equivalents, from Rs 9.35 lakh at the beginning of the year to Rs 4.81 lakh at September 30, 2026. The reported cash position matches the amount shown in Sonal Adhesives’ September 30 balance sheet, while the inventory increase is also reflected in both statements.

What did the review and segment disclosure say?

Sonal Adhesives’ independent reviewer stated on November 13, 2026 that nothing had come to its attention to suggest the unaudited financial statement was materially misstated. The reviewer assessed the quarter and half-year results ended September 30, 2026 under Indian Accounting Standard 34, Interim Financial Reporting, and the applicable listing regulations.

The review report also stated that a review is substantially narrower in scope than an audit and does not provide an audit opinion. Sonal Adhesives’ management prepared the statement, and its board approved it, while the reviewer’s conclusion covered whether the reported information met the required accounting and disclosure framework in all material respects.

Sonal Adhesives disclosed one major reportable segment under Indian Accounting Standard 108, Operating Segments. The company said that, in the board’s opinion, it has only one major segment, so the filing does not provide financial comparisons across multiple operating segments for the September 2026 half year.

Conclusion

Sonal Adhesives’ September-quarter profit of Rs 20.26 lakh exceeded the Rs 16.53 lakh earned in the June quarter, but this sequential increase did not reverse the first-half decline. Net profit for the half year was Rs 43.15 lakh, against Rs 71.28 lakh a year earlier, while inventories rose by Rs 7.1951 crore and trade receivables fell by Rs 4.8201 crore from March 31, 2026.

The filing does not disclose management guidance, a profit target or a future operating plan. The next scheduled quarterly result will show whether the September-quarter profit movement continues and whether inventory, receivables, borrowings and cash of Rs 4.81 lakh move in line with the company’s operating cash flow.