Choksi Asia net profit falls 10% as revenue slides 22.5% in Q1FY26
Choksi Asia's Q1FY26 net profit fell 10.5% to ₹96.17 lakh as revenue contracted 22.5% to ₹922.10 lakh. Total expenses declined 25.3%, but higher current taxes weighed on the bottom line despite a marginal rise in PBT.
*this image is generated using AI for illustrative purposes only.
Choksi Asia Limited reported a net profit after tax (PAT) of ₹96.17 lakh for the quarter ended June 30, 2026, marking a 10.5% year-on-year decline from the ₹107.43 lakh recorded in Q1FY25. The downturn was primarily driven by a significant contraction in revenue from operations, which fell 22.5% to ₹922.10 lakh compared to ₹1,189.75 lakh in the corresponding period of the previous year. Basic and diluted earnings per share (EPS) consequently dropped to ₹1.69 from ₹1.88.
The Board of Directors approved the standalone unaudited financial results on August 11, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Karia & Shah Chartered Accountants, in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The auditors issued an unmodified conclusion on the interim financial information.
Financial Performance Breakdown
Revenue from operations declined sharply, reflecting lower operational activity in the Non-Destructive Testing sector. While the cost of materials consumed decreased slightly to ₹222.71 lakh from ₹194.56 lakh in the prior year quarter, purchases of stock-in-trade dropped significantly to ₹196.21 lakh from ₹995.03 lakh. This reduction in inventory purchases contributed to a positive change in inventories of ₹311.18 lakh, contrasting with a negative change of ₹206.69 lakh in Q1FY25.
| Particulars | Q1FY26 (₹ in Lacs) | Q1FY25 (₹ in Lacs) | Change (%) |
|---|---|---|---|
| Revenue from operations | 922.10 | 1,189.75 | -22.5% |
| Other Income | 28.78 | 29.04 | -0.9% |
| Total Income | 950.88 | 1,218.79 | -21.9% |
| Total Expenses | 796.80 | 1,067.19 | -25.3% |
| Profit Before Tax | 154.08 | 151.60 | 1.6% |
| Net Profit After Tax | 96.17 | 107.43 | -10.5% |
Despite the revenue decline, total expenses fell by 25.3% to ₹796.80 lakh from ₹1,067.19 lakh. Finance costs reduced to ₹3.55 lakh from ₹10.05 lakh, while depreciation expenses increased slightly to ₹9.00 lakh from ₹6.33 lakh. Other income remained relatively stable at ₹28.78 lakh.
What the Numbers Show
The divergence between profit before tax (PBT) and net profit highlights the impact of tax adjustments on bottom-line results. While PBT increased marginally by 1.6% to ₹154.08 lakh, net profit declined due to higher current tax expenses of ₹41.66 lakh compared to ₹43.94 lakh in the prior year, partially offset by MAT credit entitlement utilization of ₹16.13 lakh. The company continues to monitor the implementation of the four Labour Codes notified by the Government of India in November 2025, stating that initial assessments have been incorporated into the current quarter's results.
Historical Stock Returns for Choksi Asia
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.60% | +6.48% | +28.03% | +60.87% | +165.50% | 0.0% |
How might the significant 22.5% drop in revenue from the Non-Destructive Testing sector impact Choksi Asia's market share and competitive positioning in the upcoming fiscal year?
What specific strategies is management implementing to reverse the downward trend in operational activity and drive revenue growth in Q2FY26?
How will the full implementation of the four Labour Codes notified in November 2025 affect the company's long-term cost structure and operational efficiency?
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