Weizmann September-quarter profit falls 74% as costs rise

Weizmann Limited reported standalone profit after tax of Rs 53.94 lakh for the quarter ended September 30, 2026, down 74% from Rs 2.08 crore a year earlier, as total expenses rose to Rs 33.87 crore while revenue from operations declined to Rs 34.51 crore.

Why did Weizmann’s September-quarter profit fall?

Weizmann’s standalone profit after tax fell to Rs 53.94 lakh in the quarter ended September 30, 2026, from Rs 2.08 crore in the corresponding 2025 quarter. Profit before tax dropped to Rs 98.50 lakh from Rs 2.83 crore as total income declined by Rs 1.13 crore and total expenses increased by Rs 67.97 lakh. The results show no exceptional items in either quarter.

The difference between total income and total expenses narrowed to Rs 98.50 lakh from Rs 2.83 crore a year earlier. Total income was Rs 34.85 crore in the latest quarter, against Rs 35.98 crore in the September 2025 quarter, while total expenses increased to Rs 33.87 crore from Rs 33.19 crore. This movement left less income available before tax despite the relatively limited decline in revenue.

Tax expense was Rs 44.56 lakh in the September 2026 quarter, comprising Rs 43 lakh of current tax and Rs 4.07 lakh of deferred tax, partly offset by Rs 2.51 lakh relating to earlier years. Tax expense was Rs 75.47 lakh a year earlier. Basic and diluted earnings per share were Rs 0.35, compared with Rs 1.34 in the corresponding quarter; Weizmann states that quarterly earnings per share are not annualised.

How did Weizmann’s revenue and expenses change?

Weizmann’s revenue from operations declined to Rs 34.51 crore in the September 2026 quarter from Rs 35.88 crore a year earlier, while other income rose to Rs 25.55 lakh from Rs 10.16 lakh. Revenue was, however, higher than Rs 31.74 crore in the immediately preceding quarter ended June 30, 2026. Total income also increased sequentially from Rs 31.86 crore.

Power and fuel expense increased to Rs 7.02 crore from Rs 5.83 crore in the year-earlier quarter, while other expenses rose to Rs 3.71 crore from Rs 2.52 crore. Employee benefit costs increased to Rs 3.84 crore from Rs 3.68 crore, and depreciation and amortisation rose to Rs 1.39 crore from Rs 1.11 crore. These four expense movements exceeded the decline in revenue.

Cost of materials consumed fell to Rs 10.03 crore from Rs 11.53 crore, and direct, operating and manufacturing expenses decreased to Rs 2.82 crore from Rs 3.98 crore. Job-work charges were broadly unchanged at Rs 5.21 crore, compared with Rs 5.22 crore. Changes in inventories reduced expenses by Rs 31.31 lakh, compared with a reduction of Rs 89.35 lakh in the September 2025 quarter.

What do Weizmann’s first-half results show?

Weizmann’s standalone profit after tax for the half year ended September 30, 2026 was Rs 2.34 crore, compared with Rs 3.68 crore in the corresponding 2025 period. Revenue from operations increased to Rs 66.33 crore from Rs 65.87 crore, but total expenses rose to Rs 63.39 crore from Rs 61.03 crore. Profit before tax consequently declined to Rs 3.32 crore from Rs 4.97 crore.

The six-month result differed from the September-quarter result because revenue increased over the half year, although earnings still declined. Cost of materials consumed decreased to Rs 18.59 crore from Rs 20.56 crore, but power and fuel expense rose to Rs 12.67 crore from Rs 11.03 crore. Other expenses increased to Rs 6.84 crore from Rs 4.52 crore, while employee benefit costs rose to Rs 7.38 crore from Rs 6.84 crore.

Weizmann identifies processing and manufacture of textiles as its sole business segment under Indian Accounting Standard 108, or Ind AS 108, on operating segments. The filing therefore provides no separate revenue, profit or asset breakdown for individual textile activities. The board approved the unaudited standalone results on November 12, 2026, after review by its audit committee.

How did Weizmann’s September-quarter result compare with June?

Weizmann’s profit after tax was Rs 53.94 lakh in the September 2026 quarter, compared with Rs 1.81 crore in the June 2026 quarter. This decline came despite revenue from operations increasing by Rs 2.77 crore sequentially to Rs 34.51 crore. Total expenses rose by Rs 4.35 crore from Rs 29.52 crore in the June quarter, exceeding the revenue increase.

Power and fuel expense was Rs 7.02 crore in the September quarter, up from Rs 5.65 crore in the June quarter. Other expenses rose to Rs 3.71 crore from Rs 3.14 crore, while cost of materials consumed increased to Rs 10.03 crore from Rs 8.56 crore. These sequential cost movements reduced profit before tax from Rs 2.34 crore in June to Rs 98.50 lakh in September.

Other income was Rs 25.55 lakh in the September quarter, compared with Rs 12.09 lakh in the June quarter. Finance cost increased to Rs 14.31 lakh from Rs 11.28 lakh, while depreciation and amortisation expense rose to Rs 1.39 crore from Rs 1.14 crore. The filing does not provide a management explanation for the changes in individual expense lines.

What changed in Weizmann’s cash flow and financial position?

Weizmann generated operating cash flow of Rs 7.51 crore in the half year ended September 30, 2026, compared with Rs 17.75 crore in the corresponding 2025 period. Cash generated from operations before income tax was Rs 8.56 crore, down from Rs 19.05 crore. Inventories used Rs 2.05 crore of cash in the latest half year, whereas inventories had released Rs 43.37 lakh in the earlier period.

Investing activities used Rs 3.07 crore in the half year, compared with Rs 10.85 crore a year earlier. Purchases of fixed assets, including capital work in progress, were Rs 3.33 crore, versus Rs 10.97 crore in the corresponding 2025 period. Financing activities used Rs 4.17 crore, including a Rs 2.32 crore reduction in short-term borrowings and Rs 77.47 lakh of dividends paid.

Cash and cash equivalents stood at Rs 2.11 crore on September 30, 2026, compared with Rs 1.84 crore at the start of the financial year. Total assets were Rs 104.56 crore at September 30, compared with Rs 98.67 crore at March 31, 2026, while total equity was Rs 72.61 crore against Rs 70.95 crore. Current borrowings declined to Rs 3.13 crore from Rs 5.45 crore, although current liabilities increased to Rs 29.10 crore from Rs 24.74 crore.

Conclusion

Weizmann’s September-quarter standalone result shows that lower revenue and higher expenses compressed profit sharply. Revenue from operations fell by Rs 1.37 crore year on year, while higher power and fuel, other expenses, employee costs and depreciation contributed to a Rs 1.54 crore reduction in profit after tax.

The filing does not disclose an earnings target, cost-reduction programme or next reporting date. Investors will therefore need to watch subsequent disclosures for whether power and fuel, other expenses and employee costs continue to rise relative to textile revenue, and whether the gap between total income and total expenses widens or narrows.