Technocraft Industries (India) Ltd. revenue rose 29% in Q2

Technocraft Industries (India) Ltd. reported Jul-Sep 26 operating revenue of Rs 935.18 crore, up 29% from Rs 725.38 crore a year earlier, while profit before tax fell sequentially to Rs 156.96 crore after investment mark-to-market income swung by Rs 30.97 crore from the preceding quarter.

Why did Technocraft’s profit before tax fall despite higher revenue?

Technocraft’s profit before tax, or PBT, fell 12% sequentially to Rs 156.96 crore in Jul-Sep 26, although operating revenue increased 19% from Rs 783.22 crore in Apr-Jun 26. The presentation attributes about Rs 31 crore of the PBT reduction to investment mark-to-market income changing from positive Rs 27.04 crore to negative Rs 3.93 crore.

The investment mark-to-market movement was a negative Rs 30.97 crore quarter-on-quarter change. Net unallocable income, which includes this item and other net income or expenses, changed from positive Rs 24.97 crore in Apr-Jun 26 to negative Rs 5.67 crore in Jul-Sep 26. Other net unallocable expenses narrowed to Rs 1.74 crore from Rs 2.06 crore, but this Rs 0.32 crore movement did not offset the investment valuation change.

How did Technocraft’s revenue and EBITDA change in Jul-Sep 26?

Technocraft’s operating revenue rose 29% year on year to Rs 935.18 crore in Jul-Sep 26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 40% to Rs 200.75 crore. Total revenue, including other income of Rs 25.77 crore, was Rs 960.95 crore, compared with Rs 745.57 crore in Jul-Sep 2025.

PBT increased 55% year on year from Rs 100.95 crore in Jul-Sep 2025 to Rs 156.96 crore in Jul-Sep 26. Total expenses grew 25% to Rs 803.99 crore, including a 65% increase in other expenses to Rs 266.44 crore. Cost of goods sold rose 12% to Rs 381.53 crore, employee-benefit expense rose 12% to Rs 112.24 crore, and finance costs rose 14% to Rs 15.91 crore.

Which Technocraft businesses drove revenue growth?

Technocraft’s Scaffoldings Division generated the largest Jul-Sep 26 revenue, at Rs 502.94 crore, up 25% from Rs 401.96 crore in Jul-Sep 2025 and 24% from Rs 405.08 crore in Apr-Jun 26. Its segment result, defined by the presentation as profit after depreciation but before finance cost and tax, rose 47% year on year to Rs 83.23 crore.

Drum Closure Division revenue increased 31% year on year to Rs 204.23 crore, while Textiles Division revenue also rose 31% to Rs 151.20 crore. Engineering and Designing Services reported revenue of Rs 78.85 crore, up 17%. Total segment results rose 51% to Rs 178.53 crore, comprising Rs 79.01 crore from Drum Closure, Rs 5.32 crore from Textiles and Rs 10.84 crore from Engineering and Designing Services, alongside Scaffoldings.

Sequentially, Scaffoldings added Rs 97.86 crore of revenue, compared with Rs 36.63 crore for Textiles and Rs 7.05 crore for Drum Closure. Engineering and Designing Services added Rs 1.11 crore. Inter-unit eliminations fell from Rs 11.99 crore in Apr-Jun 26 to Rs 2.81 crore in Jul-Sep 26, taking the Rs 937.99 crore segment subtotal to consolidated operating revenue of Rs 935.18 crore.

What happened to Technocraft’s margins in Jul-Sep 26?

Technocraft’s EBITDA margin was 21% in Jul-Sep 26, down from 28% in Apr-Jun 26 but above 20% in Jul-Sep 2025. PBT as a percentage of operating revenue was 17%, versus 23% sequentially and 14% a year earlier. The presentation also reported an operating margin of 18%, compared with 24% in Apr-Jun 26 and 16% in Jul-Sep 2025.

The sequential change coincided with total expenses increasing Rs 158.16 crore from Apr-Jun 26, exceeding the Rs 151.96 crore increase in operating revenue. EBITDA consequently declined by Rs 18.05 crore from Rs 218.80 crore in Apr-Jun 26. In contrast, EBITDA was Rs 57.86 crore higher than the Rs 142.89 crore reported in Jul-Sep 2025.

Within Textiles, yarn EBITDA rose to Rs 17.79 crore from Rs 12.18 crore in Apr-Jun 26 and Rs 12.32 crore a year earlier, with a 12% yarn EBITDA margin. However, EBITDA for the textile business as a whole was Rs 7.88 crore, down 28% from Rs 10.96 crore in Jul-Sep 2025, and its margin was 5%, compared with 9%. Textile cash profit was Rs 3.06 crore against Rs 6.96 crore a year earlier.

What do Technocraft’s quarterly ratios show?

Technocraft reported a debt-equity ratio of 0.39 times in Jul-Sep 26, compared with 0.42 times in Apr-Jun 26 and 0.43 times in Jul-Sep 2025. Its current ratio was unchanged sequentially at 1.99 times, compared with 1.92 times a year earlier. Capital employed was Rs 2,495.22 crore, up from Rs 2,393.76 crore in Apr-Jun 26.

Debtors increased to Rs 819.37 crore from Rs 771.97 crore sequentially, while debtor days reduced to 80 from 90 days. Inventory rose to Rs 882.78 crore from Rs 834.75 crore, but inventory days fell to 86 from 97 days. Return on capital employed, or ROCE, was 28%, below 32% in Apr-Jun 26 and above 21% in Jul-Sep 2025.

Conclusion

Technocraft’s Jul-Sep 26 figures combined broad-based year-on-year revenue growth with lower sequential PBT. Scaffoldings was the largest revenue and segment-result contributor, while Drum Closure and Textiles each reported 31% year-on-year revenue growth. EBITDA and PBT both exceeded their Jul-Sep 2025 levels, but EBITDA margin declined from the preceding quarter.

What to watch next is whether investment mark-to-market income moves away from the Jul-Sep 26 loss of Rs 3.93 crore and how operating margins develop after the reported 21% EBITDA margin. The presentation also leaves the 5% whole-textile EBITDA margin, Rs 819.37 crore of debtors and Rs 882.78 crore of inventory as measurable operating items for subsequent comparisons.