Vikas Ecotech profit falls to Rs 17.30 lakh in September

Vikas Ecotech Limited reported consolidated net profit of Rs 17.30 lakh for the quarter ended 30 September 2026, down from Rs 1.9982 crore in the preceding June quarter as revenue from operations fell to Rs 81.2694 crore from Rs 119.1516 crore. Profit before tax declined to Rs 48.14 lakh from Rs 3.2631 crore.

Why did Vikas Ecotech’s September-quarter profit fall?

Vikas Ecotech’s September-quarter profit fell as revenue, other income and segment results declined from the June 2026 quarter, while finance costs increased. Revenue from operations decreased by Rs 37.8822 crore to Rs 81.2694 crore in the quarter ended 30 September 2026, and total income fell to Rs 82.8756 crore from Rs 122.2043 crore.

Profit before tax fell to Rs 48.14 lakh from Rs 3.2631 crore over the sequential comparison. Other income declined to Rs 1.6062 crore from Rs 3.0527 crore, while finance costs rose to Rs 1.3217 crore from Rs 1.0655 crore. Tax expense was Rs 30.84 lakh, comprising current tax of Rs 35.47 lakh, tax for earlier years of Rs 3.38 lakh and a deferred-tax credit of Rs 8.01 lakh.

Total expenses were Rs 82.3942 crore in the September quarter, compared with Rs 118.9412 crore in the June quarter. Cost of materials consumed declined to Rs 55.4567 crore from Rs 78.2418 crore, purchases of stock-in-trade fell to Rs 17.5989 crore from Rs 34.9823 crore, and inventory changes moved to an expense of Rs 1.8724 crore from income of Rs 1.8686 crore.

How did Vikas Ecotech perform against the previous year?

Vikas Ecotech reported higher September-quarter revenue than a year earlier but lower profit. Revenue from operations increased from Rs 64.7174 crore in the quarter ended 30 September 2025 to Rs 81.2694 crore in the September 2026 quarter, while total income rose from Rs 66.8206 crore to Rs 82.8756 crore.

Net profit declined to Rs 17.30 lakh from Rs 1.7542 crore a year earlier, and profit before tax decreased from Rs 2.2715 crore to Rs 48.14 lakh. Total expenses rose from Rs 64.5491 crore to Rs 82.3942 crore. Material consumption increased to Rs 55.4567 crore from Rs 30.3289 crore, although purchases of stock-in-trade decreased to Rs 17.5989 crore from Rs 22.8820 crore.

For the half year ended 30 September 2026, revenue from operations rose to Rs 200.421 crore from Rs 168.273 crore in the corresponding 2025 period. Half-year net profit nevertheless declined to Rs 2.1712 crore from Rs 4.1242 crore, as profit before tax fell to Rs 3.7446 crore from Rs 5.5884 crore.

Which Vikas Ecotech segment contributed most to earnings?

Vikas Ecotech’s Chemicals, Polymers & Special Additives segment contributed the majority of reported segment result before interest and tax in the September 2026 quarter. The segment recorded revenue of Rs 72.3282 crore and a segment result of Rs 6.3059 crore, compared with Infra & Energy revenue of Rs 8.9412 crore and a segment result of Rs 3.55 lakh.

Chemicals, Polymers & Special Additives revenue fell from Rs 82.2961 crore in the June 2026 quarter, while its segment result decreased from Rs 7.6021 crore. Infra & Energy revenue fell from Rs 36.8555 crore in June to Rs 8.9412 crore in September, and its segment result declined from Rs 19.40 lakh to Rs 3.55 lakh.

The two segments together reported a September-quarter result of Rs 6.3414 crore before finance costs, other income and unallocable expenses. After finance costs of Rs 1.3217 crore, other income of Rs 1.6062 crore and other expenses of Rs 6.1444 crore, consolidated profit before tax was Rs 48.14 lakh.

One Chemicals, Polymers & Special Additives customer generated approximately Rs 9.7686 crore of September-quarter revenue. Vikas Ecotech stated that it did not have a major customer under Indian Accounting Standard 108, which governs operating-segment reporting, in the June 2026 quarter or in the September 2025 quarter.

What do Vikas Ecotech’s cash flow and balance sheet show?

Vikas Ecotech reported net cash flow from operating activities of Rs 42.2195 crore for the half year ended 30 September 2026, compared with net operating cash outflow of Rs 113.237 crore in financial year 2025-26. Cash generated from operations was Rs 41.8621 crore after working-capital movements, including a Rs 99.4389 crore decrease in other financial assets and a Rs 66.7543 crore increase in other assets.

Investing activities used Rs 29.3139 crore during the half year, including Rs 17.1537 crore of loans given and Rs 13.96 crore of investments made or withdrawn, as presented in the cash-flow statement. Financing activities used Rs 12.7173 crore, comprising borrowing repayment of Rs 10.4837 crore and interest paid of Rs 2.2336 crore. Cash and cash equivalents in that statement ended at Rs 4.6334 crore, against Rs 4.4451 crore at the start of the year.

Total assets stood at Rs 516.3325 crore on 30 September 2026, compared with Rs 512.5601 crore on 31 March 2026. Total equity increased to Rs 418.8767 crore from Rs 416.7099 crore, while total liabilities increased to Rs 97.4558 crore from Rs 95.8502 crore. Current borrowings rose to Rs 33.0342 crore from Rs 28.5350 crore and non-current borrowings rose to Rs 6.8686 crore from Rs 88.41 lakh.

What unresolved matters did Vikas Ecotech disclose?

Vikas Ecotech disclosed that approvals remained pending for the proposed cancellation of 38.035 crore equity shares issued in the earlier Shamli Steels Private Limited share-swap transaction. Under a termination-cum-settlement agreement dated 29 January 2025, the investment in Shamli Steels was transferred back to its original shareholders and the entity ceased to be a subsidiary.

The proposed capital reduction also covers cancellation of securities premium of Rs 121.71 crore. The auditor’s review report states that BSE Limited approved the proposal on 30 July 2026, while approval from the National Stock Exchange of India Limited and the National Company Law Tribunal remained awaited; the Regulation 37 matter had been referred to the Securities and Exchange Board of India.

Vikas Ecotech also disclosed Income Tax Department demands aggregating Rs 17.71 crore for various assessment years. Management said it had appealed assessment-related demands and was pursuing rectification applications for certain other demands, with no provision recognised because management expects no material liability; the outcome depends on tax and appellate authorities.

An amount of Rs 6.43 lakh in unpaid or unclaimed dividend had become due for transfer to the Investor Education and Protection Fund after the statutory seven-year period. Vikas Ecotech attributed the delay to technical issues on the Ministry of Corporate Affairs portal and said it was taking steps to complete the required formalities.

Conclusion

Vikas Ecotech’s September 2026 result combined higher revenue than the prior-year quarter with a sharp sequential reduction in profit. Revenue fell by Rs 37.8822 crore from the June quarter, while Chemicals, Polymers & Special Additives delivered Rs 6.3059 crore of segment result and Infra & Energy delivered Rs 3.55 lakh.

The next disclosed developments to watch are decisions on the cancellation of 38.035 crore shares and Rs 121.71 crore of securities premium, and the eventual outcome of Rs 17.71 crore in tax demands. Vikas Ecotech also said it would monitor Enforcement Directorate proceedings involving a promoter, which it stated do not name the company or attach its assets, bank accounts or undertakings.