Indsil Hydro Power & Manganese reported a net profit of ₹149.97 crore for the financial year ended March 31, 2026, marking an 80% decline from the previous year's ₹760.79 crore.

The drop in profitability was primarily driven by a significant reduction in other income, which fell to ₹30.85 crore from ₹1,106.83 crore in FY25. The prior year's figures included substantial gains from the sale of assets and investments.

Despite the profit contraction, revenue from operations grew 19% year-on-year to ₹1,515.18 crore, up from ₹1,275.49 crore. The ferro alloy segment contributed ₹1,496.38 crore, while the hydro power segment added ₹247.67 crore.

Operational Performance

The company generated 52.36 million units of power during the year, an increase from 44.20 million units in the preceding period. Production of silico manganese stood at 21,053 metric tonnes.

The hydro power plant operates on a build-own-operate-transfer (BOOT) basis, with the BOOT period expected to end around 2030. The company plans to monetize the land of its Palakkad smelter for residential development after the plant's eventual shutdown.

Financial Position

Total income for the year was ₹1,546.03 crore. Operating expenses remained relatively stable at ₹1,363.50 crore, compared to ₹1,345.20 crore in the previous year. Finance costs dropped sharply to ₹1.84 crore from ₹325.76 crore.

Dividend and Corporate Actions

The Board of Directors recommended a final dividend of ₹0.60 per equity share (6% of face value), subject to shareholder approval at the upcoming Annual General Meeting. This translates to a total outflow of approximately ₹16.68 crore.

The company incorporated a wholly owned subsidiary, Indsil Infrastructure Limited, in October 2025 for real estate and infrastructure development. However, the subsidiary has not yet commenced business operations.

What the Numbers Show

The divergence between operating revenue growth and net profit decline highlights the company's current earnings dependency on non-operational items. While core operations expanded with higher power generation and ferro alloy sales, the absence of large one-time gains from asset sales—which heavily boosted FY25 profits—resulted in a normalized but significantly lower bottom line for FY26.

Indsil Hydro Power & Manganese Ltd reported a standalone net profit of ₹502.5 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a 3.4% increase year-on-year from ₹486.2 lakh in the same period of FY26. The company’s revenue from operations declined slightly by 1.3% to ₹3,958.7 lakh, down from ₹4,010.6 lakh in Q1FY26.

The improvement in profitability was primarily driven by operational efficiencies in the Ferro Alloys segment, which reduced its operating loss significantly. Meanwhile, the Power segment continued to contribute substantially to the bottom line, although its operating profit contracted year-on-year.

Financial Highlights

*Note: Q1FY26 Net Profit calculated as Total Income (₹4,078.53 lakh) minus Total Expenses (₹3,454.28 lakh) minus Tax Expense (₹14.52 lakh deferred tax only, current tax was nil). Source data shows PBT of ₹624.26 lakh and PAT of ₹609.74 lakh for continuing operations in Q1FY26. The YoY growth calculation uses the disclosed PAT figures: (502.48 - 486.22) / 486.22 ≈ 3.4%. However, the source explicitly lists PAT for Q1FY26 as ₹609.74 lakh. Let's re-verify the source data strictly.

Source Data Check: Q1FY27 (June 2026): PAT = ₹502.48 lakh. Q1FY26 (June 2025): PAT = ₹609.74 lakh. Change: (502.48 - 609.74) / 609.74 = -17.6%.

Correction: Net profit fell 17.6% YoY. The previous summary was incorrect based on a misreading of the table columns or calculation. Let's re-read carefully.

Table Column 3: Quarter ended 30/06/2025 (Unaudited) -> This is Q1FY26. Row 13: Profit/(Loss) for the period -> ₹609.74 lakh. Row 13 Current Quarter (Col 1): ₹502.48 lakh.

So, Net Profit fell from ₹609.74 lakh to ₹502.48 lakh. That is a decline.

Let's look at Segment Results: Ferro Alloys Operating Loss: Q1FY27 = -₹62.25 lakh. Q1FY26 = -₹143.90 lakh. Improvement in loss. Power Operating Profit: Q1FY27 = ₹589.21 lakh. Q1FY26 = ₹768.16 lakh. Decline in profit.

Why did PAT fall if Ferro Alloys improved? Because Power profit dropped more than Ferro Alloys loss improved? Power drop: 768.16 - 589.21 = 178.95 lakh drop. Ferro Alloys improvement: 143.90 - 62.25 = 81.65 lakh improvement. Net impact on PBT: -178.95 + 81.65 = -97.3 lakh. PBT Q1FY26: 624.26. PBT Q1FY27: 526.56. Difference: 97.7 lakh. Matches.

Tax: Q1FY26 Tax: Current (nil) + Deferred (14.52) = 14.52. Q1FY27 Tax: Current (7.07) + Deferred (17.02) = 24.09. Tax increased by ~9.57 lakh.

So PAT fell due to lower Power segment profits and higher tax expense, despite better performance in Ferro Alloys.

Revised Summary: Indsil Hydro Power & Manganese Ltd reported a standalone net profit of ₹502.5 lakh for Q1FY27, down 17.6% year-on-year from ₹609.7 lakh. Revenue from operations fell 1.3% to ₹3,958.7 lakh. The decline in profit was driven by a contraction in the Power segment's operating profit, which offset an improvement in the Ferro Alloys segment's operating loss.

Revised Title: Indsil Hydro Power Q1 Results: Net profit falls 17.6% YoY to ₹502.5 lakh

Revised Content:

Indsil Hydro Power & Manganese Ltd reported a standalone net profit of ₹502.5 lakh for the quarter ended June 30, 2026 (Q1FY27), a 17.6% decline from ₹609.7 lakh in the corresponding period of FY26. Revenue from operations decreased by 1.3% to ₹3,958.7 lakh, down from ₹4,010.6 lakh in Q1FY26.

The drop in profitability stemmed primarily from the Power segment, where operating profit fell to ₹589.2 lakh from ₹768.2 lakh in the prior year. This decline outweighed an improvement in the Ferro Alloys segment, which narrowed its operating loss to ₹62.3 lakh from ₹143.9 lakh.

Financial Performance

Total expenses rose 1.8% to ₹3,516.2 lakh, driven by higher cost of materials consumed (₹2,478.8 lakh vs ₹2,392.0 lakh) and other expenses (₹834.8 lakh vs ₹836.1 lakh, largely flat but with inventory changes impacting COGS). Finance costs remained negligible at ₹0.4 lakh.

Segment-wise Results

The company operates through two main segments: Ferro Alloys and Power. Inter-segment revenue of ₹524.9 lakh was eliminated to arrive at external revenue.

The Ferro Alloys segment showed significant operational improvement, reducing its loss by over 56%. However, the Power segment, the primary profit driver, saw its operating profit contract by 23.3%, leading to the overall decline in consolidated profitability.

What the Numbers Show

While the Ferro Alloys business is stabilizing, the company’s earnings remain heavily dependent on the Power segment. In Q1FY27, the Power segment contributed ₹589.2 lakh to the pre-tax profit, accounting for approximately 112% of the total profit before tax (₹526.6 lakh), effectively covering all losses from the Ferro Alloys division and corporate overheads. Any further volatility in power generation or tariffs will have a disproportionate impact on the company’s bottom line.

Balance Sheet Signals

Capital employed increased to ₹21,663.8 lakh from ₹20,411.8 lakh in the previous quarter. Segment assets for Ferro Alloys rose to ₹21,289.6 lakh, while liabilities decreased to ₹792.4 lakh from ₹1,541.8 lakh, indicating a reduction in short-term obligations within that division. The Power segment’s capital employed remained stable at ₹1,166.7 lakh.

The financial results were reviewed by Divya K R And Associates, the statutory auditors, and approved by the Board of Directors on August 12, 2026.