Surat Trade and Mercantile Reports ₹9.67 Crore Q1 Profit

Surat Trade and Mercantile Ltd reported a net profit of ₹9.67 crore for the quarter ended June 2026, on sales of ₹49.35 crore and an operating profit margin of 6.71%. The result marked a substantial improvement from the ₹0.44 crore net loss recorded in the preceding March 2026 quarter.

What did Surat Trade report for the June 2026 quarter?

Surat Trade and Mercantile Ltd, referred to hereafter as Surat Trade, reported standalone sales of ₹49.35 crore for June 2026, compared with ₹45.99 crore in March 2026 and ₹37.29 crore in June 2025. Net profit stood at ₹9.67 crore, while earnings per share were ₹0.44.

The company recorded operating profit of ₹3.31 crore during the quarter, against ₹0.55 crore in the prior quarter. Its operating profit margin rose to 6.71% from 1.20% in March 2026. Expenses were ₹46.04 crore, compared with ₹45.44 crore in the preceding quarter.

Other income was ₹8.16 crore in June 2026, higher than the negative ₹0.36 crore reported in March 2026. This movement was reflected in profit before tax, which increased to ₹11.24 crore from a loss before tax of ₹0.03 crore in the previous quarter. Interest expense was ₹0.04 crore and depreciation was ₹0.19 crore.

How does the June quarter compare with earlier results?

Surat Trade's June 2026 sales were 32.35% higher year on year, based on the reported quarterly growth data. Sales also rose 7.31% from the March 2026 quarter. The latest figures followed a period in which quarterly sales and profitability showed considerable variation.

In June 2025, Surat Trade reported sales of ₹37.29 crore, operating profit of ₹2.38 crore and net profit of ₹8.64 crore. The company then reported net profit of ₹0.27 crore in September 2025, ₹2.51 crore in December 2025 and a net loss of ₹0.44 crore in March 2026.

The September 2025 result had drawn attention because sales fell to ₹16.67 crore and net profit declined to ₹0.27 crore. The June 2026 quarter therefore represents a return to a positive operating margin and a materially higher reported net profit than in the immediately preceding quarter.

What is the next announced results event for Surat Trade?

Surat Trade scheduled a board meeting for November 5, 2026, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2026. The meeting is the company's disclosed next results-related event in the available information.

The company also stated that its trading window would close on November 5, 2026, and reopen on November 8, 2026, in line with SEBI insider-trading requirements. This disclosure sets out the timetable for handling unpublished price-sensitive information around the results process.

The September 2026 results will provide the next reported comparison after the June quarter. Until those numbers are approved and disclosed, the available financial picture is based on the June 2026 standalone quarterly data and the historical quarterly series.

Which financial items influenced the reported profit?

Surat Trade's June-quarter net profit reflected both an improvement in operating performance and a higher contribution from other income. Operating profit increased by ₹2.76 crore quarter on quarter, while other income moved from negative ₹0.36 crore in March 2026 to positive ₹8.16 crore in June 2026.

The difference between operating profit and profit before tax is important when reading the result. Operating profit was ₹3.31 crore, while profit before tax was ₹11.24 crore. The reported other income figure was therefore a material component of the quarter's profit before tax.

Interest costs remained unchanged at ₹0.04 crore between March and June 2026. Depreciation rose from ₹0.18 crore to ₹0.19 crore. The data does not provide a detailed break-up of other income, so its underlying source cannot be determined from the disclosed figures.

What does the result mean for investors tracking Surat Trade?

For investors, the June 2026 result shows higher sales, a positive operating margin and a return to net profit after the March 2026 loss. Sales increased by ₹3.36 crore sequentially, while net profit improved by ₹10.11 crore over the same period.

At the same time, the quarterly record demonstrates that Surat Trade's reported earnings have fluctuated. Net profit ranged from a ₹4 crore loss in March 2025 to a ₹9.67 crore profit in June 2026 across the available series. Operating margins were negative in several quarters before turning positive in June 2025, March 2026 and June 2026.

The company operates in the garments and apparels industry and is identified as a micro-cap company in the supplied information. No share-price movement, order update, management commentary or detailed segment information was provided with the financial data, so the reported results remain the primary basis for assessing the latest quarter.

Conclusion

Surat Trade reported ₹49.35 crore in June 2026 sales and ₹9.67 crore in net profit, supported by a 6.71% operating margin and ₹8.16 crore of other income. The figures marked an improvement from the March 2026 quarter, when the company posted a net loss and a narrower operating profit.

The next disclosed item to watch is the board meeting on November 5, 2026, for approval of the September 2026 quarter and half-year results. Those disclosures will indicate whether the June-quarter improvement in sales, operating profitability and reported net profit continued.