Vishal Fabrics profit climbs 33% despite quarterly revenue fall

Vishal Fabrics Limited reported profit after tax of Rs 10.63 crore for the quarter ended 30 September 2026, up 33% from a year earlier, although revenue from operations fell 15% to Rs 366.33 crore. The unaudited standalone result showed total expenses declining 16%, faster than the reduction in revenue.

How did Vishal Fabrics perform in the September 2026 quarter?

Vishal Fabrics earned Rs 10.63 crore after tax in the quarter ended 30 September 2026, compared with Rs 8.01 crore in the quarter ended 30 September 2025 and Rs 7.05 crore in the preceding quarter ended 30 June 2026. Revenue from operations was Rs 366.33 crore, down from Rs 433.09 crore a year earlier and Rs 379.01 crore sequentially.

Profit before tax rose to Rs 13.17 crore from Rs 11.98 crore in the September 2025 quarter, even as total income fell to Rs 366.50 crore from Rs 433.32 crore. Other income was Rs 17.22 lakh, compared with Rs 22.31 lakh a year earlier. Basic and diluted earnings per share were Rs 0.43, versus Rs 0.36 in the prior-year quarter and Rs 0.28 in the June 2026 quarter.

What costs changed for Vishal Fabrics during the quarter?

Vishal Fabrics reduced total expenses by Rs 68.01 crore year on year to Rs 353.32 crore, exceeding the Rs 66.77 crore decline in revenue from operations. Cost of materials consumed and purchases of stock-in-trade fell to Rs 320.20 crore from Rs 362.98 crore, while changes in inventories were Rs 3.08 crore against Rs 28.28 crore in the year-earlier quarter.

Employee-benefit expense was Rs 7.20 crore in the September 2026 quarter, compared with Rs 8.17 crore a year earlier. Finance costs increased to Rs 9.46 crore from Rs 8.17 crore, while depreciation, depletion and amortisation expense declined to Rs 6.49 crore from Rs 9.46 crore. Other expenses rose to Rs 6.89 crore from Rs 4.03 crore.

Tax expense was Rs 2.55 crore, compared with Rs 3.17 crore in the September 2025 quarter. Current tax was Rs 4.11 crore, partly offset by a Rs 81.60 lakh credit related to earlier years and a Rs 75 lakh deferred-tax credit. Total comprehensive income was Rs 10.65 crore, including Rs 2.14 lakh of other comprehensive income net of tax.

What do the half-year results show for Vishal Fabrics?

Vishal Fabrics reported a 5% increase in profit after tax to Rs 17.67 crore for the half year ended 30 September 2026, from Rs 16.89 crore in the corresponding 2025 period. Revenue from operations declined 10% to Rs 745.41 crore from Rs 830.26 crore, extending the quarterly pattern of profit growth alongside lower sales.

Total expenses for the six months decreased to Rs 723.04 crore from Rs 808.07 crore, while profit before tax increased to Rs 22.64 crore from Rs 22.42 crore. Materials and stock-in-trade costs fell to Rs 660.45 crore from Rs 721.72 crore. Finance costs were Rs 19.45 crore, compared with Rs 14.72 crore, and depreciation and amortisation was Rs 13.20 crore, against Rs 16.74 crore.

Tax expense for the half year was Rs 4.96 crore, down from Rs 5.53 crore in the corresponding period. Basic and diluted earnings per share reached Rs 0.71, compared with Rs 0.68 a year earlier. The board reviewed and approved the standalone financial results on 3 November 2026.

What do Vishal Fabrics’ balance sheet and cash flow show?

Vishal Fabrics had total assets of Rs 1,100.85 crore at 30 September 2026, up from Rs 1,015.12 crore at 31 March 2026. Trade receivables increased to Rs 750.06 crore from Rs 647.85 crore, while inventories declined to Rs 61.48 crore from Rs 63.23 crore. Cash and cash equivalents in the balance sheet were Rs 14.05 crore, compared with Rs 12.78 crore at the preceding year-end.

Total equity rose to Rs 655.81 crore from Rs 638.05 crore, including other equity of Rs 532.01 crore at 30 September 2026. Current borrowings increased to Rs 230.67 crore from Rs 196.54 crore, while non-current borrowings declined to Rs 24.85 crore from Rs 28.91 crore. Current liabilities in total rose to Rs 392.33 crore from Rs 318.95 crore.

Net cash used in operating activities was Rs 6.08 crore for the half year ended 30 September 2026. The cash-flow statement recorded a Rs 102.21 crore increase in trade receivables and a Rs 33.59 crore increase in trade payables during the period. Net short-term borrowings generated Rs 34.13 crore of cash, and cash and cash equivalents in the cash-flow statement increased by Rs 1.26 crore to Rs 14.13 crore.

What disclosures remain unresolved for Vishal Fabrics?

Vishal Fabrics said it is evaluating the financial implications of the four New Labour Codes on employee-benefit obligations, and no adjustment was made for the period ended 30 September 2026. The filing states that the codes became effective on 21 November 2025, but the financial effect was not reasonably determinable while the evaluation remained in progress.

The independent auditor issued a limited-review conclusion dated 3 November 2026 for the standalone results. The auditor said nothing had come to its attention to suggest that the statement was materially misstated, while noting that a review provides moderate assurance and is narrower in scope than an audit. Separately, Rs 3.36 lakh within other current assets was stated to be lying with the income-tax department following a search conducted in July 2022.

Conclusion

Vishal Fabrics’ September-quarter profit increased despite lower revenue because the Rs 68.01 crore reduction in total expenses was larger than the Rs 66.77 crore fall in revenue from operations. The half-year figures followed the same direction: revenue fell Rs 84.85 crore, while profit after tax increased Rs 78.18 lakh from the corresponding 2025 period.

The next reported developments to watch are the company’s continuing assessment of employee-benefit obligations under the New Labour Codes and the movement in trade receivables, which rose by Rs 102.21 crore during the half year. Vishal Fabrics has not quantified the labour-code effect or recorded an adjustment because its evaluation remains in progress.