Manugraph India posts Q1FY27 net profit on asset sale gains
Manugraph India Limited posted a net profit of ₹746.44 lakhs for Q1FY27, driven by a ₹978.25 lakh gain from asset sales at Kolhapur Unit II. This exceptional item offset an operational loss of ₹291.98 lakhs, while revenue from operations fell to ₹2,570.79 lakhs compared to ₹3,166.45 lakhs in Q1FY26.

*this image is generated using AI for illustrative purposes only.
The Board of Directors of Manugraph India Limited approved unaudited financial results for the quarter ended June 30, 2026, reporting a net profit of ₹746.44 lakhs compared to a net loss of ₹123.20 lakhs in the preceding quarter. This turnaround was driven by exceptional items, specifically a ₹978.25 lakh gain from the disposal of immovable assets at its Kolhapur Unit II. While the bottom line turned positive, the result masks an underlying operational loss before tax of ₹291.98 lakhs, highlighting a divergence between core engineering performance and non-operating income from asset divestitures.
Revenue from operations declined to ₹2,570.79 lakhs in Q1FY27, down from ₹3,166.45 lakhs in the same quarter last year and slightly up from ₹2,508.63 lakhs in the immediately preceding quarter. The revenue dip was accompanied by significant inventory valuation changes, with adjustments in finished goods and work-in-progress amounting to ₹1,056.94 lakhs, a sharp increase from ₹219.99 lakhs in the prior quarter. Total expenses stood at ₹2,865.24 lakhs, exceeding total income of ₹2,573.26 lakhs, resulting in the operational deficit.
The company recognized a liability of ₹27.03 lakhs under consent terms with the Manugraph Employees' Union for workmen retirement, consistent with the scheme signed on September 20, 2024. This exceptional item reduced profits but was negligible compared to the asset sale gains. Statutory auditors Desai Shah & Associates conducted a limited review of the interim financial information in accordance with Standard on Review Engagements (SRE) 2410, confirming no material misstatements were found.
Financial Performance Metrics
| Particulars | Q1 FY27 (₹ lakhs) | Q4 FY26 (₹ lakhs) | Q1 FY26 (₹ lakhs) |
|---|---|---|---|
| Revenue from Operations | 2,570.79 | 2,508.63 | 3,166.45 |
| Other Income | 2.47 | 10.07 | 9.02 |
| Total Income | 2,573.26 | 2,518.70 | 3,175.47 |
| Total Expenses | 2,865.24 | 2,482.16 | 2,622.29 |
| Profit/(Loss) Before Tax | 659.24 | 4.29 | 742.47 |
| Net Profit/(Loss) | 746.44 | (123.20) | 682.89 |
What the Numbers Show
The primary driver of profitability in Q1FY27 was the completion of the sale of land and factory buildings at Kolhapur Unit II, which had been classified as non-current assets held for sale during the year ended March 31, 2026. While the company received the entire consideration for the factory land at Unit I and is completing documentation, the core engineering segment continues to face margin pressure. The operating loss before exceptional items and tax widened to ₹291.98 lakhs from a profit of ₹36.54 lakhs in the prior quarter, largely due to inventory adjustments and sustained cost structures despite lower revenue volumes. Deferred tax benefits of ₹87.20 lakhs further contributed to the final net profit figure.
Historical Stock Returns for Manugraph
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.50% | +10.28% | +6.67% | -9.35% | -17.28% | +28.95% |
How will the proceeds from the Kolhapur Unit II asset sale be allocated between debt reduction and core business reinvestment?
What specific operational strategies is Manugraph India implementing to reverse the widening operating loss in its core engineering segment?
Will the significant inventory valuation adjustments indicate a broader issue with demand forecasting or supply chain efficiency for future quarters?


































