Surat Trade and Mercantile first-half revenue nearly doubles

Surat Trade and Mercantile Limited reported revenue from operations of Rs 101.01 crore for the six months ended September 30, 2026, up 87% from a year earlier, while net profit rose 29% to Rs 11.48 crore as purchases and inventories increased. Surat Trade and Mercantile operates in one commodity-trading segment.

How did Surat Trade and Mercantile’s first-half results change?

Surat Trade and Mercantile’s revenue from operations increased by Rs 47.05 crore to Rs 101.01 crore in the six months ended September 30, 2026, from Rs 53.96 crore a year earlier. Total income increased to Rs 113.52 crore from Rs 64.54 crore, including other income of Rs 12.50 crore compared with Rs 10.58 crore in the corresponding period.

Surat Trade and Mercantile’s profit before tax rose by Rs 3.06 crore to Rs 14.04 crore, while total tax expense increased to Rs 2.55 crore from Rs 2.07 crore. Profit for the period consequently increased by Rs 2.58 crore to Rs 11.48 crore, and the company reported no exceptional items in either half-year period.

What costs affected Surat Trade and Mercantile’s profit growth?

Surat Trade and Mercantile’s purchases of stock-in-trade increased to Rs 119.23 crore in the latest first half from Rs 32.50 crore a year earlier, while the change in inventories line was negative Rs 23.90 crore compared with a positive Rs 17.50 crore. Total expenses were Rs 99.48 crore, against Rs 53.57 crore in the six months ended September 30, 2025.

Employee-benefit expense rose to Rs 1.27 crore from Rs 1.11 crore, while depreciation and amortisation increased to Rs 38.10 lakh from Rs 25.84 lakh. Finance costs declined to Rs 7.15 lakh from Rs 7.78 lakh, and other expenses rose to Rs 2.43 crore from Rs 2.12 crore. The results identify trading in commodities and other commodity-related activities as Surat Trade and Mercantile’s only operating segment.

What happened in Surat Trade and Mercantile’s September 2026 quarter?

Surat Trade and Mercantile reported September 2026-quarter revenue from operations of Rs 51.66 crore, compared with Rs 16.67 crore in the September 2025 quarter, while profit for the period was Rs 1.81 crore versus Rs 26.95 lakh. The year-on-year quarterly revenue increase was therefore substantially larger in absolute terms than the change in profit.

Compared with the June 2026 quarter, Surat Trade and Mercantile’s revenue increased from Rs 49.35 crore to Rs 51.66 crore, but profit for the period fell from Rs 9.67 crore to Rs 1.81 crore. Other income declined from Rs 8.16 crore in the June quarter to Rs 4.35 crore in the September quarter, while profit before tax decreased from Rs 11.24 crore to Rs 2.79 crore.

Why was Surat Trade and Mercantile’s operating cash flow negative?

Surat Trade and Mercantile recorded net cash used in operating activities of Rs 25.67 crore in the six months ended September 30, 2026, compared with net cash generated from operating activities of Rs 17.08 crore a year earlier. Its cash-flow statement records an inventory increase of Rs 23.90 crore and a Rs 2.12 crore increase in trade and other receivables during the latest half-year.

Operating profit before working-capital changes was negative Rs 12.05 crore, compared with positive Rs 73.12 lakh in the prior-year period, after adjustments including Rs 6.17 crore of interest income and Rs 4.88 crore of unrealised gains on investments measured at fair value through profit or loss. After working-capital movements, cash generated from operations was negative Rs 23.72 crore, and direct taxes paid were Rs 2.95 crore.

Surat Trade and Mercantile generated Rs 20.30 crore from investing activities in the latest half-year, compared with cash used of Rs 18.86 crore in the prior-year period. It purchased Rs 49.25 crore of current mutual-fund investments, sold Rs 68.10 crore of those investments and purchased Rs 11.49 crore of alternative investment funds. Cash and cash equivalents stood at Rs 3.48 crore on September 30, 2026, down from Rs 8.97 crore on March 31, 2026.

What balance-sheet and disclosure matters should readers note?

Surat Trade and Mercantile reported total assets of Rs 244.93 crore at September 30, 2026, compared with Rs 232.59 crore at March 31, 2026, while total equity rose to Rs 239.25 crore from Rs 227.77 crore. Non-current investments increased to Rs 107.27 crore from Rs 95.77 crore, whereas current investments declined to Rs 49.04 crore from Rs 62.42 crore over the six-month comparison.

Surat Trade and Mercantile disclosed a financial year 2025-26 non-compliance with Regulation 23 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements regulations relating to certain related-party transactions with Managing Director Alok P. Shah. The company said Board and shareholder approval or ratification was subsequently obtained, and it filed a voluntary settlement application with the Securities and Exchange Board of India on August 11, 2026. Its statutory auditors issued an unmodified limited-review conclusion for the September 2026 results.

Conclusion

Surat Trade and Mercantile’s first-half results show that Rs 101.01 crore of commodity-trading revenue produced Rs 11.48 crore of profit for the six months ended September 30, 2026, compared with Rs 53.96 crore of revenue and Rs 8.91 crore of profit a year earlier. Purchases rose to Rs 119.23 crore, while the Rs 23.90 crore inventory build-up coincided with negative operating cash flow of Rs 25.67 crore.

The next disclosure to watch is any update on Surat Trade and Mercantile’s August 11, 2026 voluntary settlement application with the Securities and Exchange Board of India. Subsequent results will also show whether inventory of Rs 23.90 crore at September 30, 2026, compared with nil at March 31, 2026, converts into sales and changes operating cash flow.