Sunflag September profit rises 28% as revenue reaches Rs 1,122 crore

Sunflag Iron & Steel Company Limited reported standalone profit after tax of Rs 58.33 crore for the quarter ended September 30, 2026, up 28% from Rs 45.57 crore a year earlier, as revenue from operations reached Rs 1,121.90 crore. The Board approved the unaudited results on November 13, 2026.

How did Sunflag's September-quarter profit and revenue change?

Sunflag's standalone profit after tax increased by Rs 12.76 crore year on year to Rs 58.33 crore in the September 2026 quarter, while revenue from operations increased by Rs 148.91 crore from Rs 972.99 crore. Total income rose to Rs 1,126.50 crore from Rs 975.21 crore, including other income of Rs 4.60 crore against Rs 2.22 crore a year earlier.

The higher income was accompanied by a larger expense base. Total expenses rose to Rs 1,048.15 crore from Rs 915.84 crore, while profit before tax increased to Rs 78.35 crore from Rs 59.37 crore. Basic and diluted earnings per share were Rs 3.24, compared with Rs 2.53 in the quarter ended September 30, 2025.

What costs changed for Sunflag during the quarter?

Sunflag's cost of materials consumed rose to Rs 733.95 crore in the September 2026 quarter from Rs 602.00 crore a year earlier, an increase of Rs 131.95 crore. Other expenses increased to Rs 246.21 crore from Rs 218.06 crore, and employee-benefit expense rose to Rs 44.46 crore from Rs 38.56 crore.

Finance costs declined to Rs 14.48 crore from Rs 16.81 crore in the prior-year quarter, while depreciation and amortisation increased to Rs 30.46 crore from Rs 27.01 crore. Changes in inventories of finished goods and work-in-process were negative Rs 21.41 crore, compared with a positive Rs 13.00 crore a year earlier, representing a changed inventory movement within reported expenses.

How did Sunflag's first-half performance compare with last year?

Sunflag reported standalone profit after tax of Rs 122.29 crore for the half year ended September 30, 2026, compared with Rs 107.61 crore in the corresponding half of 2025. Revenue from operations increased to Rs 2,200.85 crore from Rs 1,996.22 crore, while profit before tax rose to Rs 164.27 crore from Rs 140.69 crore.

Materials consumed in the half year increased to Rs 1,406.57 crore from Rs 1,177.00 crore, while other expenses climbed to Rs 488.43 crore from Rs 403.95 crore. Finance costs fell to Rs 28.49 crore from Rs 37.35 crore, and half-year earnings per share increased to Rs 6.79 from Rs 5.97.

The quarter-on-quarter comparison differed from the year-on-year result. September-quarter revenue of Rs 1,121.90 crore was higher than Rs 1,078.95 crore in the June 2026 quarter, but profit before tax declined from Rs 85.92 crore to Rs 78.35 crore. Profit after tax was Rs 58.33 crore in September, compared with Rs 63.96 crore in June.

What do Sunflag's balance sheet and cash flow show?

Sunflag reported standalone total assets of Rs 15,203.15 crore at September 30, 2026, compared with Rs 11,279.76 crore at March 31, 2026. Non-current investments were Rs 11,369.18 crore, up from Rs 7,695.38 crore at the March year-end, while cash and cash equivalents increased to Rs 321.33 crore from Rs 180.41 crore.

Standalone borrowings were lower over the six-month period. Non-current borrowings were Rs 26.39 crore at September 30, 2026, versus Rs 56.82 crore at March 31, while current borrowings fell to Rs 362.13 crore from Rs 413.45 crore. Trade receivables rose to Rs 403.51 crore from Rs 339.33 crore and trade payables to creditors other than micro and small enterprises increased to Rs 718.58 crore from Rs 527.23 crore.

Sunflag generated net cash from operating activities of Rs 338.71 crore in the half year ended September 30, 2026, compared with Rs 173.95 crore a year earlier. Investing activities used Rs 73.89 crore, including Rs 90.21 crore for property, plant and equipment, capital work-in-progress and capital advances. Financing activities used Rs 123.90 crore, leaving cash and cash equivalents at Rs 321.33 crore, versus Rs 140.69 crore at September 30, 2025.

Why was Sunflag's total comprehensive income above profit after tax?

Sunflag reported other comprehensive income of Rs 377.27 crore in the September 2026 quarter, taking total comprehensive income to Rs 435.50 crore, compared with profit after tax of Rs 58.33 crore. The company said the other comprehensive income was mainly attributable to a mark-to-market gain on equity shares it holds in Loyds Metal & Energy Limited.

The mark-to-market gain is reported separately from the quarter's profit after tax. Sunflag identified Iron & Steel Business as its only operating segment under Indian Accounting Standard 108, Operating Segments, and said operations are mainly within India. The standalone results therefore contain no separate revenue or profit split across operating businesses.

Conclusion

Sunflag's September 2026 standalone result combined a Rs 148.91 crore increase in quarterly revenue with a Rs 12.76 crore increase in profit after tax from a year earlier. Material-consumption costs increased by Rs 131.95 crore, but lower finance costs and higher income coincided with profit before tax rising to Rs 78.35 crore.

The filing does not disclose a financial target or a scheduled operating event. The main disclosed matter to watch is the future movement in the value of Sunflag's Loyds Metal & Energy Limited shareholding, because mark-to-market changes affected other comprehensive income rather than September-quarter operating profit.