Sundrop Brands Q2 revenue hits Rs 463 crore, pre-tax profit positive

Sundrop Brands Limited reported consolidated revenue from operations of Rs 463.09 crore and profit before tax of Rs 15.23 crore for the quarter ended September 30, 2026, compared with Rs 383.30 crore of revenue and a Rs 3.89 crore pre-tax loss a year earlier. The Board approved the unaudited results on November 5, 2026.

How did Sundrop Brands perform in the September 2026 quarter?

Sundrop Brands increased consolidated revenue from operations by Rs 79.79 crore year on year to Rs 463.09 crore in the quarter ended September 30, 2026, from Rs 383.30 crore in the quarter ended September 30, 2025. The company reports Foods as its sole operating segment under Indian Accounting Standard 108, which covers operating-segment reporting.

Sundrop Brands reported profit before tax of Rs 15.23 crore for the September 2026 quarter, against a loss before tax of Rs 3.89 crore a year earlier. The change in the pre-tax result was Rs 19.12 crore. The disclosed segment information provides profit before tax rather than a consolidated quarterly profit-after-tax comparison.

Sundrop Brands' profit before tax was Rs 1.92 crore lower than the Rs 17.15 crore reported in the preceding quarter ended June 30, 2026. Revenue increased by Rs 35.01 crore from Rs 428.08 crore in that June quarter, showing higher sequential revenue alongside a lower pre-tax result.

What were Sundrop Brands' first-half results and balance-sheet changes?

Sundrop Brands recorded revenue from operations of Rs 891.17 crore for the half-year ended September 30, 2026, up Rs 135.75 crore from Rs 755.42 crore in the corresponding half-year of 2025. Half-year profit before tax rose to Rs 32.38 crore from Rs 1.77 crore, an increase of Rs 30.61 crore.

Sundrop Brands had total assets of Rs 1,995.48 crore at September 30, 2026, compared with Rs 1,831.49 crore at March 31, 2026. Total liabilities increased to Rs 483.23 crore from Rs 353.01 crore over the six months, while equity attributable to owners increased to Rs 1,512.25 crore from Rs 1,478.48 crore.

Sundrop Brands' current assets rose to Rs 591.57 crore at September 30 from Rs 445.30 crore at March 31. Inventories increased to Rs 249.99 crore from Rs 190.77 crore and trade receivables rose to Rs 161.52 crore from Rs 106.28 crore, while cash and cash equivalents declined to Rs 14.26 crore from Rs 31.36 crore.

What did Sundrop Brands report on operating cash flow?

Sundrop Brands used Rs 48.63 crore in operating activities during the half-year ended September 30, 2026, compared with Rs 10.24 crore used in the corresponding 2025 period. This occurred even as operating profit before working-capital changes increased to Rs 60.33 crore from Rs 26.21 crore.

Sundrop Brands recorded Rs 55.79 crore of cash absorption from trade receivables and Rs 59.19 crore from inventories in the latest half-year, compared with Rs 7.40 crore and Rs 12.03 crore, respectively, a year earlier. Trade payables and other financial liabilities provided Rs 82.35 crore of cash, against Rs 16.59 crore in the prior-year period.

Sundrop Brands used Rs 8.99 crore in investing activities, lower than Rs 19.60 crore used a year earlier, while spending Rs 13.99 crore on property, plant and equipment, intangible assets and capital work-in-progress. Financing activities generated Rs 40.22 crore, compared with Rs 2.35 crore used in the prior-year half, and the filing includes Rs 44.00 crore under working-capital demand loans.

How did promotional reclassification and employee options affect Sundrop Brands?

Sundrop Brands reassessed the classification of certain promotional expenses during the quarter ended March 31, 2026, and now presents amounts payable to customers for promotional activities as deductions from revenue. On a consolidated basis, Rs 1.24 crore was netted against revenue in the September 2026 quarter and Rs 2.43 crore in the half-year ended September 30, 2026.

Sundrop Brands did not reclassify the comparative quarter and half-year ended September 30, 2025 because it assessed the impact as immaterial. Therefore, the September 2026 quarter's reported revenue includes the revised presentation, while the Rs 383.30 crore comparative revenue was not restated for this classification.

Sundrop Brands recognised share-based payment expense of Rs 5.52 crore in the September 2026 quarter, compared with Rs 6.39 crore in the corresponding quarter a year earlier. The first-half expense was Rs 10.26 crore, up from Rs 7.89 crore, and was recognised within employee benefits expense.

Sundrop Brands granted 154,367 employee stock options during the half-year to eligible employees of the parent company and its subsidiaries. The options have exercise prices of Rs 515 and Rs 636 each, depending on time-based and performance-based conditions and employee level, in addition to 1,480,411 options granted in the year ended March 31, 2026.

Conclusion

Sundrop Brands' September-quarter filing shows revenue growth of Rs 79.79 crore and a move from a Rs 3.89 crore pre-tax loss to Rs 15.23 crore of profit before tax. Over the first half, revenue increased by Rs 135.75 crore, while inventories, receivables and liabilities all rose from their March 2026 levels.

The next result disclosures will show how time-based and performance-based conditions attached to the 154,367 options granted in the half-year affect future share-based payment expense. They will also show whether the September 30 balances of Rs 249.99 crore in inventories and Rs 161.52 crore in receivables continue to influence operating cash flow after the Rs 48.63 crore first-half outflow.