VTM September-quarter profit rises 26% to Rs 2.92 crore

VTM Limited reported net profit of Rs 2.92 crore for the quarter ended September 30, 2026, 26% above Rs 2.32 crore a year earlier, as net sales increased 15% to Rs 98.17 crore. Profit also rose from Rs 1.93 crore in the preceding June quarter despite sales being broadly unchanged sequentially.

How did VTM perform in the September 2026 quarter?

VTM’s September-quarter net profit was Rs 2.92 crore, compared with Rs 2.32 crore in the quarter ended September 30, 2025, while earnings per share increased to Rs 0.29 from Rs 0.23. The company reported the results as unaudited standalone financial statements on November 5, 2026, and stated that it has no subsidiary.

Net sales reached Rs 98.17 crore in the September 2026 quarter, against Rs 85.59 crore a year earlier and Rs 98.40 crore in the June 2026 quarter. Sales increased by about 15% year on year but were Rs 0.23 crore lower than in the immediately preceding quarter. Other income was Rs 1.14 crore, marginally below Rs 1.16 crore a year earlier and above Rs 0.54 crore in June 2026.

The sequential profit increase exceeded the change in sales. Net profit rose about 51% from Rs 1.93 crore in June 2026 to Rs 2.92 crore in September 2026, while net sales remained close to Rs 98 crore in both quarters. The filing does not provide a management explanation for the quarter-on-quarter movement, so it does not identify a precise operational driver.

What changed in VTM’s costs and pre-tax result?

VTM reported profit before tax of Rs 3.63 crore for the September 2026 quarter, compared with Rs 2.91 crore in the September 2025 quarter. Total expenses were Rs 95.68 crore, up from Rs 88.13 crore, while net sales increased by Rs 12.58 crore over the same year-on-year comparison.

Material costs increased to Rs 74.40 crore from Rs 66.88 crore year on year. Employee-benefit expense rose to Rs 8.33 crore from Rs 6.81 crore, depreciation and amortisation increased to Rs 3.59 crore from Rs 2.85 crore, and finance costs rose to Rs 0.86 crore from Rs 0.31 crore. The filing also recorded an inventory change of negative Rs 15.70 crore, compared with negative Rs 8.50 crore a year earlier.

The reported increase in pre-tax profit was Rs 0.72 crore, while net profit increased by Rs 0.60 crore. VTM’s tax expense was Rs 0.63 crore in the September 2026 quarter, compared with Rs 0.59 crore in the year-earlier period. This resulted in the reported net profit of Rs 2.92 crore after tax, versus Rs 2.32 crore in the September 2025 quarter.

How did VTM’s first-half numbers compare with last year?

VTM’s net sales for the six months ended September 30, 2026 were Rs 196.57 crore, compared with Rs 161.86 crore in the corresponding six months of 2025. The Rs 34.71 crore sales increase did not translate into higher net profit, which was Rs 4.87 crore for the latest six months versus Rs 6.33 crore in the prior-year period.

Profit before tax for the six-month period was Rs 6.22 crore, compared with Rs 9.02 crore a year earlier. Total expenses rose to Rs 192.12 crore from Rs 154.88 crore, an increase of Rs 37.24 crore that was greater than the Rs 34.71 crore increase in net sales. The filing reports these figures but provides no management narrative explaining the year-on-year decline in first-half profit.

VTM is engaged in textile manufacturing and reported one reportable segment under Indian Accounting Standard 108, Operating Segments. The September filing therefore does not separate revenue, profit or assets by textile product category or geography. VTM also said the textile industry is seasonal and that quarterly results cannot be taken as an indicator of full-year working results.

What do VTM’s cash flows show for the first half?

VTM generated net cash from operating activities of Rs 20.01 crore in the six months ended September 30, 2026, compared with Rs 18.37 crore in the same period a year earlier. Cash generated from operations before income taxes was Rs 21.89 crore, while net income taxes paid were Rs 1.59 crore.

The company used Rs 16.60 crore in investing activities during the latest six months, compared with Rs 6.88 crore in the prior-year period. Purchases of property, plant and equipment, including changes in capital work in progress, were Rs 17.45 crore, against Rs 6.64 crore a year earlier. The filing does not specify the assets or projects behind the increase in these purchases.

Net cash used in financing activities was Rs 5.38 crore in the latest first half, following cash used of Rs 13.27 crore a year earlier. Cash and cash equivalents were Rs 1.32 crore at September 30, 2026, compared with Rs 0.72 crore a year earlier and Rs 3.00 crore at the start of the financial year. The statement reports a net decrease in cash and cash equivalents of Rs 1.68 crore for the six-month period.

VTM’s board considered the unaudited results at its November 5, 2026 meeting, which began at 10:45 AM and concluded at 2:35 PM. VTM said its statutory auditors, CNGSN & Associates LLP, carried out a limited review and issued an unmodified opinion on the standalone unaudited results for the quarter ended September 30, 2026.

Conclusion

VTM delivered higher September-quarter sales and profit, with net sales of Rs 98.17 crore and net profit of Rs 2.92 crore exceeding the year-earlier levels of Rs 85.59 crore and Rs 2.32 crore, respectively. The result also showed a sequential increase in profit from Rs 1.93 crore despite broadly flat sales, while first-half sales growth did not result in higher first-half net profit.

The next quarterly disclosure will indicate whether the September-quarter profit improvement continues through the seasonal textile cycle. VTM specifically said quarterly results cannot be treated as an indicator of full-year working results, while first-half property, plant and equipment purchases of Rs 17.45 crore and cash of Rs 1.32 crore at September 30, 2026 provide further items for comparison in subsequent filings.