Yash Chemex half-year profit rises 21% despite revenue fall

Yash Chemex Limited reported consolidated net profit of Rs 2.1425 crore for the half year ended September 30, 2026, up 21% from Rs 1.7717 crore a year earlier, although revenue from operations declined 18% to Rs 56.6097 crore. Manufacturing revenue growth, lower stock-in-trade purchases and higher other income supported the profit increase.

Why did Yash Chemex profit rise as revenue fell?

Yash Chemex lifted half-year profit because expenses and other income moved more favourably than revenue. Revenue from operations fell by Rs 12.1424 crore, from Rs 68.7521 crore in the half year ended September 30, 2025 to Rs 56.6097 crore in the latest period. Other income, however, rose to Rs 2.6872 crore from Rs 54.47 lakh, leaving total income at Rs 59.2969 crore versus Rs 69.2968 crore.

Total expenses declined to Rs 56.5808 crore from Rs 67.0708 crore. Purchase of stock-in-trade fell by Rs 11.0964 crore to Rs 38.594 crore, while inventory changes became a Rs 3.619 crore reduction from an expense of Rs 33.47 lakh. These movements outweighed a rise in cost of materials consumed to Rs 20.1662 crore from Rs 15.6985 crore and an increase in other expenses to Rs 59.14 lakh from Rs 48.56 lakh.

Profit before tax consequently increased to Rs 2.7161 crore from Rs 2.226 crore, while total tax expense rose to Rs 57.36 lakh from Rs 45.43 lakh. Net profit reached Rs 2.1425 crore, compared with Rs 1.7717 crore in the prior-year half year. Yash Chemex reported no exceptional items in either half-year period.

How did manufacturing and trading revenue change at Yash Chemex?

Manufacturing revenue grew while trading revenue declined in the half year ended September 30, 2026. Manufacturing segment revenue rose to Rs 19.202 crore from Rs 12.102 crore a year earlier, an increase of Rs 7.1 crore. Trading segment revenue fell to Rs 42.782 crore from Rs 64.25 crore, a reduction of Rs 21.468 crore.

The segment figures reconcile to consolidated operations after eliminating inter-segment revenue of Rs 5.375 crore, versus Rs 7.601 crore in the prior-year half year. Gross revenue therefore decreased to Rs 61.9842 crore from Rs 76.3528 crore before arriving at reported revenue from operations. Trading remained the larger segment by gross revenue, but its decline exceeded the manufacturing increase.

Yash Chemex reported segment result, defined as profit before finance costs and tax, of Rs 3.192 crore for the latest half year, compared with Rs 2.934 crore a year earlier. Finance costs declined to Rs 68.78 lakh from Rs 70.82 lakh. The segment disclosure reports profit before tax of Rs 2.5037 crore, while the consolidated profit-and-loss statement reports Rs 2.7161 crore; the filing does not provide a reconciliation for the difference.

What do Yash Chemex’s quarterly results show?

Yash Chemex’s September-quarter net profit rose both sequentially and year on year. Net profit for the quarter ended September 30, 2026 was Rs 1.1007 crore, against Rs 1.0418 crore in the quarter ended June 30, 2026 and Rs 91.37 lakh in the quarter ended September 30, 2025. Revenue from operations was Rs 39.4257 crore, compared with Rs 17.184 crore in the preceding quarter and Rs 38.6475 crore a year earlier.

Other income in the September quarter was Rs 1.2919 crore, compared with Rs 1.3953 crore in June and Rs 27.41 lakh in the year-earlier quarter. Total income reached Rs 40.7176 crore and total expenses were Rs 39.3136 crore, producing profit before tax of Rs 1.404 crore. That compared with Rs 1.3121 crore in June and Rs 1.1576 crore a year earlier.

Total comprehensive income for the September quarter was Rs 1.2023 crore, including Rs 10.16 lakh of other comprehensive income. It was below Rs 2.0832 crore in the June quarter, when other comprehensive income was Rs 1.0414 crore, and below Rs 1.4374 crore in the September 2025 quarter. Basic earnings per share for the half year were Rs 1.60, compared with Rs 1.25 a year earlier; the filing says quarterly earnings per share are not annualised.

What changed in Yash Chemex’s balance sheet and cash flow?

Yash Chemex’s total assets increased to Rs 105.2699 crore at September 30, 2026 from Rs 96.7157 crore at March 31, 2026. Current assets rose to Rs 85.0759 crore from Rs 77.7786 crore, including inventories of Rs 27.5708 crore and trade receivables of Rs 53.585 crore. At the preceding financial year-end, inventory stood at Rs 24.6809 crore and receivables at Rs 49.8876 crore.

Total equity increased to Rs 64.5015 crore from Rs 61.2158 crore, comprising Rs 43.8262 crore attributable to equity holders and Rs 20.6753 crore of non-controlling interest. Current borrowings rose to Rs 16.4223 crore from Rs 13.9718 crore, while trade payables to entities other than micro, small and medium enterprises increased to Rs 18.8946 crore from Rs 16.2954 crore.

Operating cash flow was an outflow of Rs 2.359 crore in the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 2.958 crore, but inventories increased by Rs 2.8899 crore and trade receivables rose by Rs 3.6906 crore. Net financing cash inflow was Rs 1.6397 crore, including Rs 2.4505 crore of net current borrowings, while cash and cash equivalents fell by Rs 1.21 lakh.

What did the auditor review and which subsidiary is included?

The auditor issued an unmodified limited-review conclusion on Yash Chemex’s unaudited consolidated results for the quarter and half year ended September 30, 2026. T R S & Associates said nothing had come to its attention indicating that the statement had failed to disclose required information or contained a material misstatement. The report states that a review provides moderate assurance and is less extensive than an audit.

The consolidated results include Yasons Chemex Care Limited. Before consolidation adjustments, the subsidiary reported total assets of Rs 61.0965 crore at September 30, 2026, half-year revenue of Rs 27.2599 crore and half-year net profit of Rs 1.0389 crore. Its half-year net cash outflow was Rs 1.27 lakh, and another auditor reviewed its interim financial information.

Conclusion

Yash Chemex’s half-year results show a profit increase despite lower revenue, with manufacturing growth partly offsetting a sharp trading decline. Lower stock-in-trade purchases, the favourable inventory movement and a Rs 2.1425 crore increase in other income contributed to net profit of Rs 2.1425 crore.

The next results will show whether manufacturing revenue can sustain its rise from Rs 12.102 crore to Rs 19.202 crore and whether trading recovers from Rs 42.782 crore. The disclosed difference between segment-reporting profit before tax of Rs 2.5037 crore and consolidated profit before tax of Rs 2.7161 crore also remains unresolved in the filing.