Sampat Aluminium revenue rises to ₹1,250m as one-off gain lifts profit

Sampat Aluminium Limited reported a net profit of INR 47.4 million (USD 502,121) for the half year ended September 30, 2026, supported by a non-recurring gain of INR 57.1 million (USD 604,875) from the sale of old plant and machinery. The company's revenue from operations increased to INR 1,250.9 million (USD 13.25 million) from INR 811.4 million (USD 8.60 million) in the corresponding period last year. However, its profit before exceptional items and tax declined significantly, highlighting the impact of the machinery sale on reported earnings.

The company's profit before exceptional items and tax stood at INR 5.887 million (USD 62,363), compared with INR 62.5 million (USD 662,079) in the first half of the previous financial year. After including the exceptional gain, profit before tax reached INR 63 million, while total tax expenses amounted to INR 15.6 million.

Machinery sale provides significant boost to earnings

The INR 57.1 million gain from the sale of old plant and machinery was classified as an exceptional, non-recurring item in the company's financial results. It exceeded the profit generated before exceptional items and tax during the reporting period, making it the principal contributor to the reported first-half earnings.

In comparison, Sampat Aluminium reported a net profit of INR 47.3 million in the corresponding period of the previous financial year, when it did not record a similar exceptional gain. Basic and diluted earnings per share for the latest half year stood at INR 5.59, compared with INR 6.59 a year earlier.

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Higher revenue accompanied by weaker pre-exceptional profitability

Sampat Aluminium's revenue from operations increased to INR 1,250.9 million from INR 811.4 million in the first half of the previous financial year. However, the increase in sales was accompanied by higher material consumption, which rose to INR 1,202.7 million from INR 707.2 million.

This absorbed much of the additional revenue and contributed to the decline in profit before exceptional items and tax. Direct expenses also increased, while finance costs declined during the reporting period.

The figures indicate that stronger revenue did not translate into higher pre-exceptional profitability. The machinery-sale gain therefore played a crucial role in supporting the company's reported net profit.

Cash flow remains under pressure

Despite reporting a profit, Sampat Aluminium recorded a cash outflow of INR 32.5 million (USD 344,281) from activities during the first half of FY2026-27. This compared with an operating cash outflow of INR 93.4 million in the corresponding period last year.

The cash-flow statement removes the machinery-sale gain when calculating operating profit before working-capital changes, as the proceeds relate to the disposal of fixed assets rather than ordinary business operations.

Working-capital movements also affected cash generation. Trade receivables increased during the period, while inventory declined. Cash and cash equivalents stood at INR 0.994 million at September 30, 2026.

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IPO proceeds support manufacturing expansion

Sampat Aluminium had raised INR 305.3 million (USD 3.23 million) through its initial public offering in September 2025. By September 30, 2026, the company had utilised INR 295.2 million (USD 3.13 million) of the proceeds.

A significant portion of the funds was allocated to capital expenditure for a new manufacturing facility at Borisana, Kadi, in Gujarat. The company reported that its INR 233.2 million (USD 2.47 million) capital-expenditure allocation had been fully utilised. The funds earmarked for general corporate purposes had also been fully deployed.

Sampat Aluminium's first-half results present a mixed financial picture. Although revenue increased substantially and the company reported a net profit, pre-exceptional profitability declined, while operating activities continued to consume cash. The exceptional gain from selling old machinery was therefore central to the reported earnings outcome, with subsequent results expected to provide a clearer picture of the company's underlying operating performance and manufacturing expansion.

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