UFM Industries September profit falls 70% as revenue declines

UFM Industries Limited reported net profit of Rs 20.17 lakh for the quarter ended 30 September 2026, down 69.7% from Rs 66.58 lakh a year earlier, after revenue from operations declined 15.6% to Rs 30.04 crore. UFM Industries’ calculated net profit margin narrowed to 0.7% from 1.8% a year earlier.

Why did UFM Industries’ September-quarter profit fall?

UFM Industries’ September-quarter profit fell because lower operating revenue and total income were accompanied by a decline in pre-tax profit. Revenue from operations was Rs 30.04 crore for the quarter ended 30 September 2026, versus Rs 35.57 crore in the quarter ended 30 September 2025. Total income fell to Rs 30.06 crore from Rs 36.26 crore over the same periods.

Profit before tax declined to Rs 28.27 lakh from Rs 69.97 lakh, while tax expense increased to Rs 8.10 lakh from Rs 3.39 lakh. Total expenses reduced to Rs 29.78 crore from Rs 35.56 crore, but the decline did not match the Rs 6.20 crore reduction in total income. Net profit after tax was consequently Rs 20.17 lakh, compared with Rs 66.58 lakh a year earlier.

Cost of materials consumed decreased to Rs 26.83 crore from Rs 32.89 crore. Employee benefits expense was broadly unchanged at Rs 69.07 lakh, compared with Rs 68.75 lakh, while finance costs rose to Rs 34.25 lakh from Rs 32.41 lakh. No exceptional items were reported in either September-quarter column.

How did UFM Industries perform against the June quarter?

UFM Industries improved sequentially in the quarter ended 30 September 2026, with net profit rising to Rs 20.17 lakh from Rs 16.90 lakh in the quarter ended 30 June 2026. Revenue from operations increased to Rs 30.04 crore from Rs 25.01 crore, and total income rose to Rs 30.06 crore from Rs 25.06 crore.

Profit before tax increased to Rs 28.27 lakh from Rs 23.94 lakh, while total expenses rose to Rs 29.78 crore from Rs 24.82 crore. Cost of materials consumed increased to Rs 26.83 crore from Rs 22.07 crore, and employee benefits expense rose to Rs 69.07 lakh from Rs 50.41 lakh as revenue increased quarter on quarter.

Basic and diluted earnings per share, or EPS, were Rs 0.34 in the September quarter, compared with Rs 0.28 in the June quarter and Rs 1.12 in the September 2025 quarter. The filing specifies that EPS, based on equity shares with a face value of Rs 10 each, is not annualised. The sequential gain therefore did not restore earnings to the prior-year quarter’s level.

What was UFM Industries’ half-year earnings trend?

UFM Industries reported net profit of Rs 37.07 lakh for the half year ended 30 September 2026, down 60.9% from Rs 94.71 lakh in the corresponding half year of 2025. Revenue from operations declined 18.0% to Rs 55.05 crore from Rs 67.11 crore, while total income decreased to Rs 55.12 crore from Rs 67.88 crore.

Half-year profit before tax was Rs 52.21 lakh, compared with Rs 1.08 crore a year earlier. Tax expense increased to Rs 15.14 lakh from Rs 12.85 lakh, reducing basic and diluted EPS to Rs 0.62 from Rs 1.60. Total comprehensive income was also Rs 37.07 lakh in the latest half year, as no other comprehensive income was reported for that period.

Material consumption fell to Rs 48.89 crore from Rs 61.21 crore during the half year. Other expenses declined to Rs 3.45 crore from Rs 3.67 crore, employee benefits expense edged down to Rs 1.19 crore from Rs 1.21 crore, and finance costs fell slightly to Rs 62.82 lakh from Rs 63.97 lakh.

What changed in UFM Industries’ balance sheet and cash flow?

UFM Industries’ total assets rose to Rs 49.31 crore at 30 September 2026 from Rs 36.35 crore at 31 March 2026. Current assets increased to Rs 30.43 crore from Rs 17.69 crore, led by inventories of Rs 21.66 crore versus Rs 9.39 crore and trade receivables of Rs 7.38 crore versus Rs 4.04 crore.

Cash and cash equivalents fell to Rs 23.53 lakh at 30 September 2026 from Rs 2.37 crore at 31 March 2026. Total equity increased to Rs 24.73 crore from Rs 24.36 crore, while non-current borrowings rose to Rs 4.04 crore from Rs 1.59 crore and current borrowings increased to Rs 14.79 crore from Rs 8.41 crore.

The standalone cash-flow statement recorded net cash used in operating activities of Rs 10.35 crore for the half year ended 30 September 2026. The statement showed Rs 12.26 crore used by higher inventories and Rs 3.34 crore used by higher trade receivables, partly offset by a Rs 2.74 crore increase in trade payables.

Net cash generated from financing activities was Rs 8.20 crore in the half year, including Rs 5.43 crore in net proceeds from short-term borrowings, Rs 2.38 crore from long-term borrowings and Rs 1.01 crore from an unsecured inter-corporate deposit. Net cash used in investing activities was not reported: investing activities generated Rs 1.97 lakh, leaving a Rs 2.13 crore decline in cash and cash equivalents.

Did UFM Industries’ auditor flag any issue?

UFM Industries’ statutory auditor, Anil Hitesh & Associates, said in its limited review report dated 12 November 2026 that nothing had come to its attention indicating that the unaudited results were not prepared, in all material respects, under applicable accounting standards and disclosure requirements. The audit committee and board approved the results on 12 November 2026.

The review was conducted under Standard on Review Engagements 2410, which the auditor said consists principally of inquiries and analytical procedures and provides less assurance than an audit. The auditor did not express an audit opinion. UFM Industries also said prior-period figures had been regrouped or reclassified where necessary.

The filing does not disclose a revenue target, earnings forecast, capital-expenditure plan or date for the next results announcement. Its financial information covers the quarter and half year ended 30 September 2026, along with balance-sheet positions at 30 September 2026 and 31 March 2026.

Conclusion

UFM Industries delivered a sequential rise in September-quarter revenue and net profit, but its year-on-year earnings declined sharply. Operating revenue was Rs 5.53 crore lower than in the September 2025 quarter, while net profit was Rs 46.41 lakh lower and calculated net margin narrowed from 1.8% to 0.7%.

The next results will show whether inventory of Rs 21.66 crore and receivables of Rs 7.38 crore convert into operating cash, and how total borrowings of Rs 18.83 crore affect finance costs. UFM Industries has not disclosed management guidance, a target or a scheduled next-results date in this filing.