Vaswani Industries Q2 profit reaches Rs 6.61 crore on tax credit

Vaswani Industries Limited reported standalone profit after tax of Rs 6.61 crore for the quarter ended 30 September 2026, versus Rs 1.16 crore in the June quarter, after a Rs 4.07 crore deferred-tax credit outweighed a decline in profit before tax to Rs 2.54 crore. The board approved the unaudited results on 14 November 2026.

Why did Vaswani Industries' September-quarter profit rise?

Vaswani Industries' September-quarter profit rose because the Rs 4.07 crore deferred-tax credit more than offset lower pre-tax earnings. Profit before tax was Rs 2.54 crore for the quarter ended 30 September 2026, down from Rs 4.54 crore in the quarter ended 30 June 2026, while profit after tax rose from Rs 1.16 crore to Rs 6.61 crore.

The tax line changed materially between the two quarters. Vaswani Industries reported a deferred-tax credit of Rs 4.07 crore in September, compared with deferred-tax expense of Rs 3.36 crore and total tax expense of Rs 3.37 crore in June. The statement reported no exceptional items in either quarter, meaning the tax movement accounted for the difference between the pre-tax and post-tax trends.

Vaswani Industries' profit before tax was Rs 0.91 crore above the Rs 1.63 crore reported in the quarter ended 30 September 2025, while profit after tax was Rs 6.61 crore against Rs 1.34 crore a year earlier. Basic and diluted earnings per share were Rs 2.01 in September 2026, compared with Rs 0.35 in June 2026 and Rs 0.42 in September 2025.

How did Vaswani Industries' revenue and costs change?

Vaswani Industries reported revenue from operations of Rs 137.14 crore in the September 2026 quarter, up from Rs 117.79 crore in June 2026 and Rs 85.01 crore in September 2025. Other income was Rs 0.24 crore, taking total income to Rs 137.38 crore, compared with Rs 118.40 crore in the preceding quarter.

Total expenses increased to Rs 134.84 crore from Rs 113.87 crore in June, leaving profit before tax lower despite the increase in income. Materials consumed declined to Rs 98.62 crore from Rs 103.99 crore, but changes in inventories moved to an expense of Rs 6.52 crore from a reduction of Rs 17.20 crore in the June quarter.

Employee-benefit expense rose to Rs 5.99 crore from Rs 4.62 crore, while other expenses increased to Rs 9.91 crore from Rs 6.69 crore. Finance cost declined to Rs 5.77 crore from Rs 6.16 crore, but depreciation and amortisation increased to Rs 4.09 crore from Rs 3.97 crore. These reported cost movements accompanied the decline in sequential pre-tax profit.

Which Vaswani Industries segment drove September-quarter revenue?

Vaswani Industries' iron and steel segment was the larger contributor to September-quarter segment revenue, reporting Rs 126.08 crore including other income, compared with Rs 11.31 crore for power. Iron and steel revenue rose from Rs 109.97 crore in June 2026, while power revenue increased from Rs 8.43 crore.

Iron and steel segment result declined to Rs 4.49 crore from Rs 8.10 crore despite the Rs 16.11 crore revenue increase. In contrast, power segment result rose to Rs 3.81 crore from Rs 2.60 crore. Combined segment result consequently fell to Rs 8.31 crore from Rs 10.70 crore before finance cost of Rs 5.77 crore reduced reported profit before tax to Rs 2.54 crore.

For the half year ended 30 September 2026, Vaswani Industries reported iron and steel revenue of Rs 236.05 crore and power revenue of Rs 19.74 crore. The corresponding segment results were Rs 12.59 crore and Rs 6.42 crore. The segment statement showed no quarterly or half-year revenue and result for real estate or agri products.

What do Vaswani Industries' cash flow and balance sheet show?

Vaswani Industries generated net cash from operating activities of Rs 5.74 crore in the half year ended 30 September 2026, down from Rs 10.80 crore in the half year ended 30 September 2025. Operating profit before working-capital changes increased to Rs 27.07 crore from Rs 16.51 crore, but working-capital movements reduced cash generated from operations to Rs 5.74 crore.

Inventories increased by Rs 11.29 crore during the half year, loans and advances increased by Rs 12.17 crore, and trade payables declined by Rs 4.35 crore. Trade receivables fell by Rs 3.43 crore and other current assets fell by Rs 5.12 crore, partly offsetting the inventory and advance movements in the operating cash-flow calculation.

At 30 September 2026, total assets stood at Rs 530.75 crore, compared with Rs 508.31 crore at 31 March 2026. Inventories were Rs 93.50 crore against Rs 82.21 crore, while capital work in progress rose to Rs 16.70 crore from Rs 9.41 crore. Cash and cash equivalents were Rs 5.55 crore, compared with Rs 4.68 crore at the financial year-end.

Non-current borrowings were Rs 225.79 crore at 30 September 2026, compared with Rs 218.51 crore at 31 March 2026, and current borrowings were Rs 72.17 crore versus Rs 58.48 crore. The half-year cash-flow statement recorded net short-term borrowing proceeds of Rs 13.69 crore, net long-term borrowing proceeds of Rs 7.28 crore, and net investing cash outflow of Rs 13.59 crore.

Conclusion

Vaswani Industries' Rs 6.61 crore September-quarter profit was driven by a Rs 4.07 crore deferred-tax credit rather than a higher pre-tax result. Revenue increased in both reported operating segments, but the iron and steel segment result fell by Rs 3.61 crore sequentially, contributing to the decline in total profit before tax from Rs 4.54 crore to Rs 2.54 crore.

The filing does not disclose a financial target, operating plan or date for the next results announcement. The next update will clarify whether iron and steel segment result changes from Rs 4.49 crore, whether inventories and loans and advances move from Rs 93.50 crore and Rs 35.53 crore respectively, and whether tax treatment again has a material effect on profit after tax.