Sumeet Industries Limited Q2 profit falls 62% as revenue rises 35%

Sumeet Industries Limited reported revenue from operations of Rs 364.18 crore for the quarter ended 30 September 2026, up 35.2% year on year, while profit for the period fell 61.7% to Rs 3.77 crore after a Rs 1.27 crore current-tax charge. The company’s revised filing also incorporated a Rs 1.65 crore consolidated half-year tax provision.

How did Sumeet Industries’ Q2 revenue and profit change?

Sumeet Industries’ revenue from operations increased to Rs 364.18 crore in the quarter ended 30 September 2026 from Rs 269.30 crore in the year-earlier quarter, a rise of Rs 94.88 crore. Total income, which includes other income, reached Rs 367.12 crore against Rs 271.00 crore in the corresponding quarter of 2025. Other income increased to Rs 2.94 crore from Rs 1.70 crore.

Profit before tax fell to Rs 5.04 crore from Rs 9.86 crore despite the higher revenue base. Profit for the period, before share of profit from associates, declined to Rs 3.77 crore from Rs 9.86 crore. Profit before tax represented about 1.4% of total income in the September 2026 quarter, compared with about 3.6% in the corresponding prior-year quarter.

The company recorded Rs 62.88 lakh as share of profit from associates in the September 2026 quarter. Including this item, profit after tax and share of profit from associates was Rs 4.40 crore, compared with Rs 9.86 crore a year earlier. Basic earnings per share, not annualised, was Rs 0.06, against Rs 0.18 in the September 2025 quarter, on equity shares with a face value of Rs 2 each.

Sequentially, the September 2026 quarter improved from the June 2026 quarter. Revenue from operations rose from Rs 272.36 crore to Rs 364.18 crore, while profit before tax increased from Rs 1.53 crore to Rs 5.04 crore. Profit for the period before associate income rose from Rs 1.14 crore in June 2026 to Rs 3.77 crore, although it remained below the September 2025 level.

Why did Sumeet Industries revise its financial filing?

Sumeet Industries revised its integrated financial filing on 4 November 2026 because a tax provision was omitted from the consolidated column through what it described as a typographical oversight. The company said the Rs 1.65 crore provision for the six months ended 30 September 2026 was corrected in the consolidated figures for both the three-month and six-month periods. It stated that there was no other change to the results or statements filed on 3 November 2026.

Current tax for the September 2026 quarter was Rs 1.27 crore, compared with nil in the September 2025 quarter. That tax expense reduced profit for the period before associate income from Rs 5.04 crore of profit before tax to Rs 3.77 crore. The remaining Rs 38.42 lakh of the Rs 1.65 crore half-year current-tax provision was booked in the June 2026 quarter.

For the six months ended 30 September 2026, revenue from operations rose to Rs 636.54 crore from Rs 517.77 crore in the corresponding prior-year half. However, profit before tax declined to Rs 6.57 crore from Rs 17.84 crore, and profit for the period before associate income declined to Rs 4.92 crore from Rs 17.84 crore. The half-year result included the Rs 1.65 crore current-tax charge, whereas the comparable prior-year half carried no current tax.

The audit committee reviewed the unaudited quarter and half-year results, and the board approved them on 3 November 2026. The statutory auditors conducted a limited review for the period ended 30 September 2026 and stated that nothing had come to their attention indicating that the financial statements contained a material misstatement.

Which costs changed as Sumeet Industries’ sales increased?

Sumeet Industries’ cost of materials consumed increased to Rs 314.73 crore in the September 2026 quarter from Rs 206.74 crore a year earlier, a rise of Rs 107.99 crore. This increase exceeded the Rs 94.88 crore rise in revenue from operations. Materials consumed were therefore a higher share of revenue than in the September 2025 quarter.

Other expenses rose to Rs 45.05 crore from Rs 39.54 crore, while employee-benefit expense increased to Rs 8.10 crore from Rs 7.56 crore. Depreciation and amortisation expense increased to Rs 4.92 crore from Rs 4.20 crore. Total expenses reached Rs 362.08 crore, compared with Rs 261.14 crore in the year-earlier quarter.

Finance costs were Rs 2.20 crore in the September 2026 quarter, compared with Rs 2.16 crore a year earlier and Rs 3.02 crore in the June 2026 quarter. Changes in inventories of finished goods, work in progress and stock-in-trade were negative Rs 12.92 crore in the latest quarter, compared with negative Rs 12.04 lakh a year earlier. A negative movement under this line item reduced reported expenses.

Sumeet Industries identifies manufacturing and trading of textile products as its primary business. Its chief operating decision maker, or CODM, reviews it as a single reportable segment under Indian Accounting Standard 108, or Ind AS 108. The filing therefore does not provide separate revenue, profit or asset figures by textile product category for the Rs 364.18 crore quarterly revenue base.

What changed in Sumeet Industries’ funding and balance sheet?

Sumeet Industries’ consolidated total assets increased to Rs 811.03 crore at 30 September 2026 from Rs 550.81 crore at 31 March 2026. Consolidated equity rose to Rs 417.69 crore from Rs 211.89 crore over the same period. Cash and cash equivalents increased to Rs 161.08 crore from Rs 38.65 crore.

The company completed a rights issue during the quarter comprising 16,84,24,218 fully paid equity shares at Rs 11.86 each, including a premium of Rs 9.86 a share. The issue aggregated Rs 199.75 crore and was subscribed 2.5 times, according to the filing. Eligible shareholders received eight rights shares for every 25 fully paid shares held on the record date of 12 June 2026.

Non-current consolidated borrowings rose to Rs 101.75 crore at 30 September 2026 from Rs 85.62 crore at 31 March 2026. Current borrowings fell to Rs 35.80 crore from Rs 73.65 crore, while trade receivables increased to Rs 189.11 crore from Rs 133.06 crore. Consolidated inventories increased to Rs 146.32 crore from Rs 133.24 crore.

During the quarter, wholly owned subsidiary Sumeet Speciality Chips Limited acquired Phase-3 Chips Manufacturing Plant of Nakoda Limited through the liquidation process under the Insolvency and Bankruptcy Code, 2016. Sumeet Industries funded the subsidiary with Rs 1 lakh of equity and an unsecured loan repayable on demand of Rs 27.78 crore as at 30 September 2026. Earnest money of Rs 1.17 crore paid in March 2026 was transferred to the subsidiary.

Conclusion

Sumeet Industries’ September-quarter results show that a Rs 94.88 crore year-on-year increase in revenue did not translate into higher earnings. Higher materials consumption, other expenses and a Rs 1.27 crore current-tax expense accompanied a reduction in profit before tax to Rs 5.04 crore and profit for the period to Rs 3.77 crore.

The next disclosed developments to watch are the use and financial effects of the Rs 199.75 crore rights issue and the Phase-3 Chips Manufacturing Plant acquired by Sumeet Speciality Chips Limited. The filing identifies Rs 27.78 crore of on-demand loan funding for the subsidiary as at 30 September 2026, but does not disclose a production start date, capacity target or expected financial contribution from the plant.