SPL Industries trading segment profit rises 37% in half year

SPL Industries Ltd. reported a 37% year-on-year increase in garment-trading segment profit to Rs 6.45 crore in the half year ended September 30, 2026, while trading revenue rose 22% to Rs 27.25 crore. Manufacturing and processing revenue slipped Rs 12 lakh to Rs 16.04 crore, but its segment result increased to Rs 3.34 crore.

How did SPL Industries’ segments perform in the first half?

SPL Industries recorded total segment revenue including other income of Rs 43.30 crore in the half year ended September 30, 2026, compared with Rs 38.46 crore in the corresponding half of 2025. The Rs 4.84 crore increase was driven by trading of garments, which added Rs 4.96 crore of revenue, while manufacturing and processing income declined by Rs 12 lakh.

Trading of garments was SPL Industries’ larger business segment in the six-month period, contributing Rs 27.25 crore, or about 63%, of total reported segment revenue. In the half year ended September 30, 2025, trading contributed Rs 22.29 crore, or about 58%, of the Rs 38.46 crore total, while manufacturing and processing income was Rs 16.16 crore.

SPL Industries reported no inter-segment revenue in either half-year period, meaning total segment revenue matched net revenue from operations from external customers at Rs 43.30 crore for the 2026 half year. For the year ended March 31, 2026, total segment revenue was Rs 88.78 crore, comprising Rs 55.33 crore from trading and Rs 33.45 crore from manufacturing and processing.

Why did SPL Industries’ trading segment profit increase?

SPL Industries’ trading of garments segment result rose to Rs 6.45 crore in the half year ended September 30, 2026 from Rs 4.72 crore a year earlier. The Rs 1.73 crore increase was about 37%, alongside the Rs 4.96 crore rise in segment revenue to Rs 27.25 crore.

The disclosed figures indicate that the trading segment result was about 24% of segment revenue in the 2026 half year, compared with about 21% in the previous-year half. This is a calculation from the reported segment revenue and result, not a margin stated by management. Trading supplied Rs 6.45 crore of SPL Industries’ combined segment result of Rs 9.79 crore.

In the three months ended June 30, 2026, trading revenue was Rs 15.57 crore and the segment result was Rs 3.04 crore. For the three months ended September 30, 2026, revenue was lower at Rs 11.69 crore but the segment result was higher at Rs 3.41 crore, showing a Rs 37 lakh quarter-on-quarter increase in the reported result.

The annual segment disclosure provides a wider comparison: trading revenue was Rs 55.33 crore and trading segment result was Rs 11.38 crore for the year ended March 31, 2026. The first-half 2026 revenue of Rs 27.25 crore was therefore just under half of the prior financial year’s reported trading revenue.

What changed in SPL Industries’ manufacturing and processing segment?

SPL Industries’ manufacturing and processing income was broadly unchanged at Rs 16.04 crore in the half year ended September 30, 2026, compared with Rs 16.16 crore in the prior-year half. Its segment result nevertheless increased by Rs 1.53 crore, or about 85%, to Rs 3.34 crore from Rs 1.81 crore.

The reported data imply that manufacturing and processing segment result was about 21% of revenue in the 2026 half year, compared with about 11% in the corresponding 2025 period. SPL Industries did not provide segment-level volume, price or cost details that would identify the reason for the higher reported result.

Manufacturing and processing income was Rs 7.99 crore in the June 2026 quarter and Rs 8.06 crore in the September 2026 quarter. However, the segment result declined from Rs 2.22 crore in June to Rs 1.12 crore in September, despite the Rs 7 lakh increase in quarterly income.

For the year ended March 31, 2026, manufacturing and processing generated revenue including other income of Rs 33.45 crore and segment result of Rs 6.32 crore. The first-half 2026 segment result of Rs 3.34 crore was therefore more than half of the prior full-year result, while first-half revenue was below half of the annual amount.

How did higher segment results translate into profit?

SPL Industries’ total segment result rose to Rs 9.79 crore in the half year ended September 30, 2026 from Rs 6.53 crore a year earlier. Employee cost was nearly unchanged at Rs 5.04 crore compared with Rs 5.03 crore, while finance cost rose to Rs 1.71 crore from Rs 33.98 lakh.

Profit before tax increased to Rs 3.04 crore from Rs 1.17 crore in the prior-year half. Tax expense and adjustments were Rs 1.93 crore, against Rs 45.10 lakh a year earlier, resulting in net profit after tax of Rs 1.11 crore compared with Rs 72.46 lakh.

The two quarters produced different company-level outcomes. SPL Industries reported profit before tax of Rs 2.52 crore and net profit after tax of Rs 2.13 crore for the June 2026 quarter, while the September 2026 quarter reported profit before tax of Rs 52.46 lakh and a net loss after tax of Rs 1.02 crore.

The September-quarter loss followed tax expense and adjustments of Rs 1.54 crore, exceeding that quarter’s Rs 52.46 lakh profit before tax. SPL Industries’ segment disclosure does not provide a further explanation for the quarterly tax expense and adjustment figure.

What balance-sheet and cash-flow changes accompanied the half-year results?

SPL Industries had total assets of Rs 226.70 crore as at September 30, 2026, compared with Rs 235.09 crore at March 31, 2026. Total equity increased to Rs 217.16 crore from Rs 216.05 crore, while total liabilities fell to Rs 9.55 crore from Rs 19.04 crore.

Current trade receivables declined to Rs 8.46 crore at September 30, 2026 from Rs 16.27 crore at March 31, 2026. Inventories increased to Rs 1.66 crore from Rs 1.13 crore, while current investments rose to Rs 72.16 crore from Rs 68.78 crore over the same dates.

Cash and cash equivalents were Rs 77.74 lakh at September 30, 2026, down from Rs 1.19 crore at March 31, 2026. SPL Industries reported net cash used in operating activities of Rs 4.54 crore for the 2026 half year, compared with net cash from operating activities of Rs 20.84 crore in the half year ended September 30, 2025.

The cash-flow statement recorded net cash from investing activities of Rs 4.13 crore for the 2026 half year, versus net cash used in investing activities of Rs 18.77 crore a year earlier. Net cash and cash equivalents decreased by Rs 41.56 lakh in the 2026 period, whereas they increased by Rs 2.05 crore in the comparable 2025 half year.

Conclusion

SPL Industries’ half-year segment figures show that garment trading accounted for the main increase in both revenue and segment result, with revenue reaching Rs 27.25 crore and segment profit reaching Rs 6.45 crore. Manufacturing and processing added little revenue growth at Rs 16.04 crore, but its Rs 3.34 crore segment result was substantially above the Rs 1.81 crore reported a year earlier.

The next results will show whether trading revenue recovers from Rs 11.69 crore in the September 2026 quarter after Rs 15.57 crore in June, and whether manufacturing can reverse its quarterly result decline from Rs 2.22 crore to Rs 1.12 crore. Finance cost, which was Rs 1.71 crore for the first half, and operating cash flow, which was negative Rs 4.54 crore, remain disclosed items to monitor.