Deem Roll Tech FY26 PAT falls 25.3% on higher costs
Deem Roll Tech reported a 25.3% decline in FY26 net profit to ₹216.51 lakh, impacted by higher finance costs and tax adjustments, despite a 24.2% rise in EBITDA to ₹885.79 lakh. Revenue from operations decreased 2.2% to ₹9,088.44 lakh, while the EBITDA margin expanded to 9.75%. The second half of the year saw a strong turnaround, with H2 PAT reaching ₹264.06 lakh against a loss in H1.
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Deem Roll Tech reported a 25.3% decline in net profit to ₹216.51 lakh for the financial year ended March 31, 2026, compared to ₹289.94 lakh in the previous year. The company attributed the decline in profit after tax (PAT) to increased finance costs and tax adjustments, even as operating profitability improved significantly. Revenue from operations decreased 2.2% to ₹9,088.44 lakh from ₹9,290.81 lakh in FY25, while total revenue stood at ₹9,276.99 lakh. The Board of Directors approved the audited financial results for the year and half year ended March 31, 2026, at a meeting held on May 25, 2026.
Financial Performance
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 24.2% to ₹885.79 lakh from ₹713.36 lakh in the prior year. Consequently, the EBITDA margin expanded to 9.75% in FY26 from 7.68% in FY25. Profit before tax (PBT) grew 26.6% to ₹278.37 lakh. However, the basic earnings per share (EPS) fell to ₹2.60 from ₹3.40 in the previous year.
| Metric | FY26 (₹ in Lakh) | FY25 (₹ in Lakh) | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 9,088.44 | 9,290.81 | -2.18% |
| Total Revenue | 9,276.99 | 9,474.09 | -2.08% |
| EBITDA | 885.79 | 713.36 | 24.17% |
| PBT | 278.37 | 219.81 | 26.64% |
| Net Profit | 216.51 | 289.94 | -25.33% |
| Basic EPS (₹) | 2.60 | 3.40 | - |
Half-Year Performance
A review of the half-year performance reveals a sharp turnaround in the second half. For H2 FY26, the company reported a PAT of ₹264.06 lakh against a loss of ₹45.23 lakh in H1 FY26. Similarly, PBT for H2 stood at ₹324.76 lakh compared to a loss of ₹46.39 lakh in the first half. EBITDA for H2 jumped to ₹655.24 lakh from ₹230.56 lakh in H1, marking an increase of 184.2%.
| Particulars | H2 FY26 (₹ in Lakh) | H1 FY26 (₹ in Lakh) | Growth (%) |
|---|---|---|---|
| Revenue from Operations | 4,542.02 | 4,546.42 | -0.10% |
| Total Revenue | 4,693.89 | 4,683.09 | +0.23% |
| EBITDA | 655.24 | 230.56 | +184.22% |
| PBT | 324.76 | (46.39) | +798.64% |
| PAT | 264.06 | (45.23) | +684.54% |
Auditor's Report and Disclosures
The statutory auditors, M/s SN Shah & Associates, issued an audit report with an unmodified opinion. However, the auditors drew attention to an emphasis of matter, noting that the company has not made provision for doubtful trade receivables of ₹35.44 lakh, which are outstanding for more than one year. The auditors stated that their opinion is not modified in respect of this matter.
Historical Stock Returns for Deem Roll Tech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.66% | +25.31% | +44.09% | -0.99% | -9.01% | -76.16% |
What strategies will management implement to reduce the increased finance costs that negatively impacted net profit?
Is the strong operational turnaround in H2 FY26 sustainable, and what specific initiatives drove the EBITDA surge?
How does the company plan to address the auditors' concern regarding the unprovided doubtful trade receivables?
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