Stovec Industries Limited profit falls 11% as revenue rises 12%

Stovec Industries Limited reported profit for the period of Rs 1.06 crore for the quarter ended September 30, 2026, an 11% year-on-year decline, while revenue from operations rose 12% to Rs 45.77 crore. Profit before tax decreased 17% to Rs 1.33 crore as other income and segment results declined.

Why did Stovec's profit fall despite higher revenue?

Stovec's profit fell because total expenses increased to Rs 45.01 crore in the September 2026 quarter from Rs 40.41 crore a year earlier, while total income rose to Rs 46.34 crore from Rs 42.02 crore. Revenue from operations increased by Rs 4.89 crore, but other income declined to Rs 57.50 lakh from Rs 1.14 crore. Profit before tax consequently reduced to Rs 1.33 crore from Rs 1.61 crore.

The September outcome was also lower than the preceding June 2026 quarter, when Stovec reported revenue from operations of Rs 52.77 crore and profit for the period of Rs 2.45 crore. September revenue was Rs 7 crore below the June figure, while profit was Rs 1.39 crore lower. Total income declined from Rs 53.43 crore in June 2026, and profit before tax fell from Rs 3.25 crore.

Which costs changed in Stovec's September quarter?

Stovec recorded materials consumed of Rs 20.88 crore in the September 2026 quarter, down from Rs 24.73 crore a year earlier, but inventory changes became an expense of Rs 1.07 crore rather than the Rs 7.19 crore reduction reported in the earlier quarter. Purchases of stock-in-trade increased to Rs 4.24 crore from Rs 2.20 crore. These movements accompanied the Rs 4.60 crore increase in total expenses.

Employee benefits expense decreased to Rs 7.30 crore from Rs 8.31 crore, depreciation and amortisation declined to Rs 1.33 crore from Rs 1.39 crore, and other expenses reduced to Rs 10.18 crore from Rs 10.96 crore. Total tax expense was Rs 27 lakh, compared with Rs 41.60 lakh a year earlier. Basic and diluted earnings per share, which were not annualised, were Rs 5.08 against Rs 5.73.

How did Stovec's segments perform in the September quarter?

Stovec's Textile Machinery and Consumables segment generated revenue of Rs 43.07 crore in the September 2026 quarter, up from Rs 38.28 crore a year earlier, while Graphics Consumables revenue increased to Rs 2.70 crore from Rs 2.60 crore. Textile Machinery and Consumables includes perforated rotary screens, lacquer and auxiliary chemicals, digital ink, rotary screen printing machines, engraving equipment, components and spares.

Segment profitability moved in the opposite direction to segment revenue. Textile Machinery and Consumables reported a segment result of Rs 1 crore, down from Rs 3.30 crore, and Graphics Consumables reported Rs 96.90 lakh, down from Rs 1.31 crore. Total segment results were Rs 1.98 crore, compared with Rs 4.61 crore, before unallocable expenditure net of unallocable other income of Rs 64.50 lakh.

What do Stovec's nine-month results show?

Stovec reported revenue from operations of Rs 145.22 crore for the nine months ended September 30, 2026, down 1% from Rs 146.69 crore in the comparable 2025 period. Profit for the period declined 23% to Rs 5.18 crore from Rs 6.73 crore, while profit before tax fell 26% to Rs 6.65 crore from Rs 8.99 crore. Total income was Rs 147.17 crore, against Rs 150.86 crore a year earlier.

The two segments showed different revenue trends over the nine months. Textile Machinery and Consumables revenue decreased to Rs 137.56 crore from Rs 139.85 crore, whereas Graphics Consumables revenue rose to Rs 7.06 crore from Rs 6.64 crore. Their segment results fell to Rs 11.28 crore from Rs 15.04 crore and to Rs 3.16 crore from Rs 3.26 crore, respectively.

What did Stovec's review and balance-sheet data disclose?

Stovec's unaudited results were approved by the board on November 3, 2026, following review by the audit committee. Price Waterhouse Chartered Accountants LLP issued a limited review report and said nothing had come to its attention indicating that the statement was materially misstated or had not been prepared under the applicable reporting requirements. The review was conducted under Standard on Review Engagements 2410.

Stovec reported total assets of Rs 172.72 crore at September 30, 2026, compared with Rs 174.03 crore a year earlier and Rs 167.63 crore at December 31, 2025. Total liabilities were Rs 38.04 crore, below Rs 42.71 crore a year earlier but above Rs 35.85 crore at the 2025 year end. Paid-up equity share capital was Rs 2.09 crore, based on shares with a face value of Rs 10 each.

Conclusion

Stovec's September-quarter results show that the Rs 4.89 crore year-on-year rise in revenue did not translate into higher profit. The shift in inventory movements, higher stock-in-trade purchases, lower other income and lower reported segment results coincided with profit for the period falling to Rs 1.06 crore. The nine-month comparison also showed lower revenue and a Rs 1.55 crore decline in profit.

The filing does not set a revenue target, profit target or operating outlook. The next disclosed event is the reopening of the trading window for specified persons on November 5, 2026, following the board meeting that approved the September 30, 2026 results.