Sree Rayalaseema Hi-Strength Hypo Q2 profit rises 36%

Sree Rayalaseema Hi-Strength Hypo Limited reported standalone profit after tax of Rs 33.13 crore for the quarter ended September 30, 2026, up 36% from Rs 24.37 crore a year earlier, after revenue from operations rose 35% to Rs 246.41 crore. Sree Rayalaseema Hi-Strength Hypo’s board approved the unaudited results on November 14, 2026.

How did Sree Rayalaseema Hi-Strength Hypo perform in the September quarter?

Sree Rayalaseema Hi-Strength Hypo increased total revenue to Rs 256.60 crore in the September 2026 quarter from Rs 189.47 crore in the September 2025 quarter. Revenue from operations was Rs 246.41 crore, compared with Rs 182.39 crore a year earlier, while other income increased to Rs 10.19 crore from Rs 7.08 crore. Total profit after tax rose by Rs 8.77 crore to Rs 33.13 crore.

Profit before exceptional items and tax increased to Rs 43.48 crore from Rs 32.27 crore in the year-earlier quarter. The September 2026 result included an exceptional gain of Rs 1.11 crore, taking profit before tax to Rs 44.59 crore, while the September 2025 quarter had no exceptional item. Basic and diluted earnings per share for continuing and discontinuing operations were Rs 19.30, against Rs 14.20, and the quarterly figures were not annualised.

What changed in Sree Rayalaseema Hi-Strength Hypo’s costs?

Sree Rayalaseema Hi-Strength Hypo’s total expenditure rose to Rs 213.12 crore in the September 2026 quarter from Rs 157.21 crore a year earlier, an increase of Rs 55.92 crore. Cost of materials consumed increased by Rs 43.25 crore to Rs 133.20 crore, the largest movement among the disclosed cost lines. Other expenses rose to Rs 70.84 crore from Rs 60.11 crore, and employee-benefit expense increased to Rs 10.40 crore from Rs 8.28 crore.

The Rs 67.13 crore increase in total revenue exceeded the Rs 55.92 crore increase in expenditure, resulting in a Rs 11.21 crore rise in profit before exceptional items and tax. Finance cost increased to Rs 52.96 lakh from Rs 42.39 lakh, while depreciation and amortisation was Rs 1.41 crore, nearly unchanged from Rs 1.40 crore. The inventory-change line was negative Rs 3.25 crore, compared with negative Rs 2.95 crore in the prior-year quarter.

Tax expense was Rs 11.45 crore in the September 2026 quarter, compared with Rs 7.90 crore in September 2025. Current tax rose to Rs 11.05 crore from Rs 7.47 crore, while deferred tax was Rs 40.12 lakh against Rs 42.92 lakh. After these charges, profit from continuing operations was Rs 33.13 crore, up from Rs 24.37 crore.

How did Sree Rayalaseema Hi-Strength Hypo compare with the June quarter?

Sree Rayalaseema Hi-Strength Hypo’s revenue from operations rose from Rs 210.95 crore in the June 2026 quarter to Rs 246.41 crore in the September 2026 quarter. Total revenue increased from Rs 220.83 crore to Rs 256.60 crore, while total profit after tax rose from Rs 25.17 crore to Rs 33.13 crore. Earnings per share increased from Rs 14.66 to Rs 19.30 over the same sequential comparison.

The change in exceptional items also affected the sequential comparison. Sree Rayalaseema Hi-Strength Hypo reported an exceptional loss of Rs 3.50 crore in the June 2026 quarter, followed by an exceptional gain of Rs 1.11 crore in September. Before exceptional items and tax, profit increased by Rs 5.63 crore to Rs 43.48 crore, from Rs 37.85 crore in June 2026.

For the half year ended September 30, 2026, revenue from operations was Rs 457.36 crore, compared with Rs 362.65 crore in the half year ended September 30, 2025. Half-year total profit after tax rose to Rs 58.31 crore from Rs 47.78 crore. Profit before tax was Rs 78.94 crore, compared with Rs 64.59 crore in the earlier half year.

What did Sree Rayalaseema Hi-Strength Hypo disclose on gold futures and the thermal plant?

Sree Rayalaseema Hi-Strength Hypo said the Rs 1.11 crore exceptional gain in the September 2026 quarter was profit on gold futures. This followed the Rs 3.50 crore exceptional loss recorded in June 2026, while no exceptional item was reported for September 2025. The filing does not disclose the quantity, contract maturity or notional value of the gold-futures position.

Sree Rayalaseema Hi-Strength Hypo also said its board decided in the quarter ended September 2025 to sell a 10 megawatt thermal power plant. The asset was classified as held for sale at March 31, 2026, but the sale was not completed within one year. The company therefore reversed the held-for-sale classification under Indian Accounting Standard 105, and the standalone balance sheet showed no non-current assets held for sale at September 30, 2026, compared with Rs 2.54 crore at March 31, 2026.

The company identifies chemicals and wind energy-power as operating segments but reports only the chemical segment because wind-energy revenue is less than 10% of total revenue. Its operating facilities and non-current assets are located in India, according to the September 2026 filing. The segment disclosure therefore does not provide separate wind-energy revenue or profit figures.

What do Sree Rayalaseema Hi-Strength Hypo’s cash flow and balance sheet show?

Sree Rayalaseema Hi-Strength Hypo generated net cash flow from operating activities of Rs 25.66 crore in the half year ended September 30, 2026. Cash generated from operations before direct taxes was Rs 31.16 crore, and direct taxes paid were Rs 5.50 crore. The cash-flow statement recorded a Rs 39.20 crore increase in trade receivables, partly offset by a Rs 6.48 crore reduction in inventories.

Standalone cash and cash equivalents increased to Rs 468.71 crore at September 30, 2026 from Rs 433.97 crore at March 31, 2026. Net cash flow from investing activities was Rs 12.45 crore, including Rs 13.71 crore of interest received and Rs 6.35 crore spent on property, plant and equipment. Financing activities used Rs 3.38 crore, including Rs 5.15 crore of dividend paid.

Trade receivables stood at Rs 123.24 crore at September 30, 2026, compared with Rs 84.04 crore at March 31, 2026. Non-current investments increased to Rs 413.25 crore from Rs 324.06 crore, while current investments were Rs 25.13 crore against nil at the previous year-end. The standalone balance sheet reported nil current and non-current borrowings at both reporting dates, while total equity rose to Rs 1,099.73 crore from Rs 976.41 crore.

Conclusion

Sree Rayalaseema Hi-Strength Hypo’s September-quarter results show that a Rs 64.02 crore increase in revenue from operations translated into an Rs 8.77 crore rise in standalone profit after tax, despite a Rs 43.25 crore increase in material consumption. The Rs 1.11 crore profit on gold futures also lifted reported pre-tax profit for the quarter ended September 30, 2026.

The next disclosed matters to watch are trade receivables, which increased by Rs 39.20 crore in the half-year cash-flow statement, and progress on the planned sale of the 10 megawatt thermal power plant. Sree Rayalaseema Hi-Strength Hypo said the asset’s held-for-sale classification was reversed after the sale was not completed within one year, and it did not disclose a revised timetable.