Mallcom FY26 revenue rises 10.8% but profit falls 47.7%
Mallcom (India) Ltd. reported a 10.8% increase in FY26 revenue to ₹5,396 Mn, while net profit declined 47.7% to ₹300 Mn, impacted by higher raw material costs and lower sales realization. The company recommended a final dividend of ₹3 per share and highlighted the commencement of commercial production at its Sanand and Chandipur facilities. Management expects domestic growth to continue and aims for normalized EBITDA margins of 14-15%.
*this image is generated using AI for illustrative purposes only.
Mallcom (India) Ltd. reported its audited financial results for the financial year ended March 31, 2026, revealing a rise in annual revenue alongside a decline in net profit. The Board of Directors approved the results at a meeting held on May 28, 2026. The company also recommended a final dividend of ₹3 per equity share for the financial year 2025-26, subject to shareholder approval.
FY26 Financial Performance
The company recorded operational income of ₹5,396 Mn for the year ended March 31, 2026, compared to ₹4,868 Mn in the previous year. Despite the top-line growth, net profit for the year fell to ₹300 Mn from ₹574 Mn in FY25. Profit before tax stood at ₹406 Mn, down from ₹741 Mn in the corresponding period last year. The decline in profitability was attributed to higher raw material costs, lower sale value realization, and increased employee costs. Additionally, profits for the current year were not comparable to the previous year due to a capital gain of ₹254 Mn from the sale of land in FY25.
For the quarter ended March 31, 2026, operational income was ₹1,467 Mn, while net profit for the quarter was ₹63 Mn. The statutory auditors, M/s. Agarwal Maheswari & Co., issued an unqualified audit report on the standalone and consolidated financial results.
| Metric | FY26 (₹ in Mn) | FY25 (₹ in Mn) |
|---|---|---|
| Operational Income | 5,396 | 4,868 |
| Total Expenses | 4,791 | 4,259 |
| Profit Before Tax | 406 | 741 |
| Net Profit | 300 | 574 |
| Earnings Per Share (Diluted) | 48.15 | 92.04 |
Operational and Segment Details
The company reported that its entire turnover consists of the sale of "Industrial Safety Products," which constitutes a single reportable segment under Ind AS 108. Geographically, total sales for FY26 were divided between Asia (47%), Europe (33%), and the Americas (18%). The company noted that the Protec work wear unit at Sanand, Gujarat, has started commercial production with a total capex of ₹1,050 Mn. Furthermore, a new unit for designing and manufacturing Industrial Safety Shoes at Chandipur, West Bengal, involving capex of ₹250 Mn, is now fully operational.
Dividend and Appointments
The Board has recommended a final dividend of ₹3 per equity share of face value ₹10 each, equivalent to 30%, for FY26. Additionally, the Board re-appointed M/s. Jha Yadav & Co., Chartered Accountants, as the Internal Auditors of the company for the financial year 2026-27.
Management Commentary on FY26 Results
In a Q4 FY26 earnings conference call held on May 29, 2026, management stated that the domestic business expanded by approximately 20% year-on-year, while exports faced headwinds due to prohibitive tariffs in the U.S. and bleak demand in the EU. Both new manufacturing units at Sanand and Chandipur are fully commissioned and operational. The company also commenced in-house manufacturing of PU Coated Gloves and PVC Gumboots to serve as import substitutes. Management noted that moderation in EBITDA margins was driven by higher raw material costs, lower sales realization, and increased employee expenses. Looking ahead, the company expects domestic market growth to continue and aims to achieve normalized EBITDA margins of 14-15% as capacities ramp up.
Historical Stock Returns for Mallcom
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.17% | -8.22% | -1.45% | -14.41% | -22.29% | +10.25% |
What specific strategies will management employ to mitigate the impact of prohibitive U.S. tariffs and bleak EU demand on exports?
How will the commencement of in-house manufacturing for PU Coated Gloves and PVC Gumboots contribute to cost savings and import substitution in the coming year?
What is the expected timeline for the new Sanand and Chandipur units to reach full capacity and contribute to the targeted 14-15% normalized EBITDA margins?
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