Supershakti Metaliks profit rises 73% on associate gains

Supershakti Metaliks Limited reported consolidated net profit of Rs 18.35 crore for the half year ended September 30, 2026, up 73% from Rs 10.61 crore a year earlier, as its share of profit from associate Giridhan Metal Private Limited increased to Rs 13.37 crore from Rs 4.59 crore despite lower profit before that contribution.

How did Supershakti Metaliks’ consolidated profit change?

Supershakti Metaliks’ consolidated net profit increased by Rs 7.75 crore to Rs 18.35 crore in the half year ended September 30, 2026, from Rs 10.61 crore in the corresponding half of 2025. Total comprehensive income rose to Rs 18.26 crore from Rs 10.58 crore, while basic earnings per equity share, which were not annualised, increased to Rs 15.93 from Rs 9.20.

The gain occurred despite a decline in profit before exceptional items, tax and the share of profit of associates to Rs 6.66 crore from Rs 7.50 crore. Supershakti Metaliks’ share of associate profit increased by Rs 8.77 crore year on year to Rs 13.37 crore. After including that contribution, profit before exceptional items and tax rose to Rs 20.03 crore from Rs 12.10 crore.

What drove Supershakti Metaliks’ earnings increase?

Supershakti Metaliks’ associate contribution was the principal reason for the increase in consolidated earnings, accounting for about two-thirds of Rs 20.03 crore of profit before tax in the September 2026 half. Giridhan Metal Private Limited is the only associate included in the consolidated financial results, according to the company’s notes and the auditor’s review report.

The operating result before associate profit moved in the opposite direction. Revenue from operations rose by Rs 57.46 crore to Rs 386.23 crore from Rs 328.78 crore, but total expenses increased by Rs 58.21 crore to Rs 383.63 crore. Consequently, profit before the associate share, exceptional items and tax decreased by Rs 84 lakh to Rs 6.66 crore.

Other income was Rs 4.06 crore in the half year ended September 2026, compared with Rs 3.88 crore a year earlier. Cost of materials consumed increased to Rs 312.09 crore from Rs 258.91 crore, while other expenses rose to Rs 66.80 crore from Rs 60.62 crore. Those cost movements exceeded the revenue increase at the level before associate income.

Which costs changed in the September 2026 half?

Supershakti Metaliks’ power and fuel expense increased to Rs 51.44 crore in April to September 2026 from Rs 46.11 crore in April to September 2025. The Rs 5.33 crore increase was included within other expenses of Rs 66.80 crore for the latest half. Power and fuel expense had been Rs 48.07 crore in the preceding October 2025 to March 2026 half.

Employee benefits expense rose to Rs 7.29 crore from Rs 7.00 crore in the year-earlier half. Finance costs declined to Rs 61.61 lakh from Rs 98.95 lakh, while depreciation and amortisation expense decreased to Rs 2.34 crore from Rs 2.63 crore. The change in inventories was a credit of Rs 5.56 crore, compared with a credit of Rs 6.71 crore a year earlier.

Supershakti Metaliks recorded no exceptional item in the half ended September 2026. In the half ended March 31, 2026, it recognised an exceptional item of Rs 88.57 lakh related to the statutory impact of the new labour codes. The company said the amount was an incremental gratuity valuation liability from past service cost after reassessing employee benefit obligations for certain employees under the revised definition of wages.

What do Supershakti Metaliks’ balance sheet and cash flows show?

Supershakti Metaliks had total assets of Rs 361.65 crore at September 30, 2026, compared with Rs 339.54 crore at March 31, 2026. Investments in associates increased to Rs 174.92 crore from Rs 161.54 crore, while non-current investments rose to Rs 66.40 crore from Rs 31.31 crore. Current investments declined to Rs 19.03 crore from Rs 45.94 crore.

Cash and cash equivalents fell to Rs 1.87 crore at September 30 from Rs 7.29 crore at March 31. The consolidated cash-flow statement reported a net cash decrease of Rs 5.43 crore during the half, compared with a Rs 8.20 crore increase in the half year ended September 2025. Net cash used in investing activities was Rs 8.88 crore, while financing activities generated Rs 6.57 crore, including Rs 7.29 crore of short-term borrowings.

Inventories increased to Rs 31.47 crore at September 30 from Rs 15.50 crore at March 31, and trade receivables rose to Rs 4.23 crore from Rs 3.18 crore. Total equity increased to Rs 314.82 crore from Rs 297.14 crore. Current borrowings stood at Rs 7.28 crore at September 30, compared with Rs 3.20 lakh at March 31.

What business and reporting scope does Supershakti Metaliks disclose?

Supershakti Metaliks classifies its activity as one primary business segment, manufacturing and trading of iron and steel products, and therefore did not provide separate segment information under Indian Accounting Standard 108. Its consolidated results comprise Supershakti Metaliks and its associate, Giridhan Metal Private Limited, for the half year ended September 30, 2026.

The board approved the unaudited consolidated results on November 13, 2026, after review by its audit committee. S K Agrawal and Co Chartered Accountants LLP conducted a limited review of the consolidated results and stated that nothing had come to its attention indicating that the statement failed to meet the applicable reporting requirements or contained a material misstatement.

The auditor also stated that a limited review is substantially narrower in scope than an audit and that it did not express an audit opinion. The comparative six-month results for September 2025 and the audited financial statements for the year ended March 31, 2026 had been reviewed or audited by the predecessor auditor, according to the review report dated November 13, 2026.

Conclusion

Supershakti Metaliks’ 73% increase in consolidated half-year net profit to Rs 18.35 crore was led by the higher Rs 13.37 crore contribution from Giridhan Metal Private Limited. Revenue rose to Rs 386.23 crore, but profit before associate share, exceptional items and tax fell to Rs 6.66 crore as expenses increased faster than revenue, including power and fuel costs of Rs 51.44 crore.

The next disclosed matter to watch is Supershakti Metaliks’ implementation of applicable new labour-code provisions and its review of estimates and assumptions for remaining employees from October 2026. The company had recognised a Rs 88.57 lakh past-service gratuity liability in the year ended March 31, 2026, so subsequent filings may show whether further accounting effects arise.