Stovec Industries Limited textile profit falls 70% despite sales rise

Stovec reported a 69.7% year-on-year fall in textile machinery and consumables segment profit to Rs 1 crore for the quarter ended September 30, 2026, although segment sales rose 12.5% to Rs 43.067 crore. The segment had reported profit of Rs 3.298 crore on sales of Rs 38.278 crore in the quarter ended September 30, 2025.

Why did Stovec’s textile segment profit fall despite higher sales?

Stovec’s textile machinery and consumables segment reported profit before finance costs and tax of Rs 1 crore for the September 2026 quarter, down from Rs 3.298 crore a year earlier, while sales and other operating income increased by Rs 4.789 crore. The disclosure therefore shows a lower segment result alongside higher revenue during the quarter.

The filing does not give a product-level, customer-level or cost-level explanation for the reduction in segment profit. It defines the segment as perforated rotary screens, lacquer and auxiliary chemicals, digital ink, rotary screen printing machines, engraving equipment, components and spares, but provides no separate revenue or profit figures for those categories.

The quarter-on-quarter comparison also shows a reduction from the June 2026 period. Textile machinery and consumables sales were Rs 50.333 crore in the quarter ended June 30, 2026, compared with Rs 43.067 crore in the September quarter, while segment profit declined from Rs 5.672 crore to Rs 1 crore.

How did Stovec’s graphics consumables segment perform?

Stovec’s graphics consumables segment profit before finance costs and tax fell 26.1% year on year to Rs 96.9 lakh in the September 2026 quarter from Rs 1.311 crore. Sales and other operating income nevertheless increased 3.6% to Rs 2.699 crore from Rs 2.604 crore.

Graphics consumables contributed Rs 2.699 crore of Stovec’s Rs 45.766 crore total segment revenue for the September quarter, compared with Rs 43.067 crore from textile machinery and consumables. The segment includes anilox rollers, Rotamesh screens and RotaPlate, according to the filing.

The graphics business recorded a different sales trend from the textile segment against June 2026. Its September-quarter sales increased from Rs 2.432 crore, but profit declined from Rs 1.014 crore to Rs 96.9 lakh, a sequential decrease of Rs 4.5 lakh.

What was Stovec’s overall September-quarter result?

Stovec reported revenue from operations of Rs 45.766 crore for the quarter ended September 30, 2026, up 12.0% from Rs 40.882 crore in the corresponding 2025 quarter. Profit before tax fell 17.4% to Rs 1.332 crore, and profit for the period fell 11.3% to Rs 1.062 crore.

Total income, including other income, was Rs 46.341 crore, compared with Rs 42.024 crore a year earlier. Other income declined to Rs 57.5 lakh from Rs 1.142 crore, while total expenses rose to Rs 45.009 crore from Rs 40.411 crore.

The reported profit before tax reflected unallocable expenditure net of unallocable other income of Rs 64.5 lakh in the September quarter. Stovec reported total segment results of Rs 1.977 crore before that unallocable amount, compared with Rs 4.609 crore in the September 2025 quarter.

What do Stovec’s nine-month segment figures show?

Stovec’s textile machinery and consumables sales and other operating income declined to Rs 137.560 crore in the nine months ended September 30, 2026, from Rs 139.852 crore in the prior-year period. Segment profit before finance costs and tax fell 25.0% to Rs 11.282 crore from Rs 15.035 crore.

Graphics consumables sales rose to Rs 7.061 crore in the nine-month period from Rs 6.640 crore a year earlier, but its segment profit declined to Rs 3.164 crore from Rs 3.263 crore. Combined segment revenue was Rs 145.221 crore, down from Rs 146.692 crore, while total segment results fell to Rs 14.446 crore from Rs 18.298 crore.

For Stovec overall, nine-month revenue from operations was Rs 145.221 crore, 1.0% below the prior-year figure. Profit before tax was Rs 6.654 crore versus Rs 8.992 crore, and profit for the period was Rs 5.177 crore versus Rs 6.734 crore.

What changed in Stovec’s segment assets and liabilities?

Stovec reported textile machinery and consumables segment assets of Rs 112.132 crore at September 30, 2026, down from Rs 132.320 crore a year earlier and Rs 116.116 crore at June 30, 2026. Graphics consumables assets were Rs 2.733 crore, compared with Rs 2.424 crore a year earlier.

Textile machinery and consumables segment liabilities stood at Rs 33.440 crore at September 30, 2026, versus Rs 36.310 crore a year earlier. Graphics consumables liabilities were Rs 68.5 lakh, up from Rs 53.1 lakh, while total assets were Rs 172.718 crore and total liabilities were Rs 38.044 crore.

Stovec’s basic and diluted earnings per share were Rs 5.08 for the September 2026 quarter, compared with Rs 5.73 a year earlier. The board approved the unaudited quarter and nine-month results on November 3, 2026, and the statutory auditor issued a limited-review conclusion.

Conclusion

Stovec’s September-quarter figures show that both reported operating segments increased sales year on year while recording lower segment profit. The larger textile machinery and consumables business accounted for Rs 43.067 crore of revenue but only Rs 1 crore of segment profit, while company-wide profit before tax declined despite a 12.0% increase in revenue from operations.

The filing does not disclose a management explanation, earnings target or cost plan for the textile segment’s profit decline. The next point to watch is whether subsequent quarterly results provide detail on the gap between textile machinery sales and segment profit, as well as the level of unallocable expenditure reported at Rs 64.5 lakh for the September 2026 quarter.