Mehul Colours reported a 33.22% rise in revenue from operations to ₹3,040.32 lakh for the financial year ended March 31, 2026 (FY26), compared to ₹2,282.20 lakh in the previous year. However, net profit after tax declined 5.1% to ₹522.29 lakh, down from ₹550.30 lakh in FY25, as input cost pressures weighed on margins.

The company’s total income grew to ₹3,181.16 lakh from ₹2,371.29 lakh, driven by higher operational revenue and increased other income of ₹140.84 lakh. Despite the top-line growth, profit before tax fell to ₹703.48 lakh from ₹740.37 lakh, reflecting the impact of volatile petrochemical and pigment feedstock costs on operating margins.

Financial Performance

Revenue from operations expanded significantly, with domestic sales reaching ₹2,615.62 lakh and export sales surging to ₹424.70 lakh, up from ₹155.79 lakh in the prior year. Total income included other income of ₹140.84 lakh, which rose from ₹89.09 lakh, contributing to the overall revenue growth.

What the Numbers Show

The divergence between strong revenue growth and declining profitability highlights margin compression during the period. EBITDA margin contracted sharply to 19.81% from 30.17% in the previous year, while net profit margin fell to 17.18% from 24.11%. This indicates that rising raw material costs were not fully passed on to customers, eroding operational efficiency despite higher sales volumes.

Balance Sheet and Liquidity

The company’s liquidity position strengthened considerably following its initial public offer (IPO). Cash and bank balances surged to ₹1,433.05 lakh from ₹129.30 lakh, boosting the current ratio to 9.92 times from 6.03 times. The IPO raised ₹21.66 crore, increasing the net worth to ₹4,126.79 lakh from ₹1,706.06 lakh.

Trade receivables turnover slowed slightly to 4.50 times from 4.95 times, suggesting a minor extension in credit cycles. Meanwhile, inventory turnover improved to 7.92 times from 5.22 times, indicating better stock management relative to the higher cost of goods sold.

Corporate Actions and Governance

Mehul Colours listed its equity shares on the SME platform of BSE Limited in August 2025, issuing 30,08,000 shares at ₹72 each. The Board has not recommended any dividend for FY26, opting to conserve resources for future growth. The company also appointed Mr. Tejas Harish Joshi as an Additional Director, effective September 5, 2026, subject to shareholder approval at the upcoming Annual General Meeting scheduled for September 30, 2026.

Mehul Colours Limited reported a net profit of ₹5.22 crore for the financial year ended March 31, 2026, on revenue from operations of ₹30.40 crore. Revenue increased by 33.2% from ₹22.82 crore in the previous year, driven by strategic growth and the addition of new business opportunities. The company's board approved the audited standalone financial results for the year and half-year ended March 31, 2026, at a meeting held on May 30, 2026.

For the half-year ended March 31, 2026, the company recorded a net profit of ₹1.93 crore on revenue from operations of ₹16.19 lakh. In comparison, the net profit for the half-year ended September 30, 2025, was ₹3.29 lakh on revenue of ₹14.21 lakh. Total income for FY26 stood at ₹31.81 crore, compared to ₹23.71 crore in the previous year. Statutory auditors YMS & Co. LLP issued an unmodified opinion on the financial results.

Financial Performance

The company's total expenses for FY26 increased to ₹24.77 crore from ₹16.30 crore in the previous year. The cost of materials consumed rose to ₹17.49 crore from ₹10.42 crore. Earnings per share (EPS) for FY26 were reported at ₹4.95, down from ₹7.30 in the previous year. The paid-up equity share capital increased to ₹10.54 crore from ₹7.54 crore in the prior year.

Cash Flow Position

The company reported a net increase in cash and cash equivalents of ₹13.03 crore for FY26, bringing the closing balance to ₹14.33 crore. Cash generated from operations was negative at ₹(5.23) crore, while net cash inflow from financing activities was ₹20.92 crore, primarily driven by proceeds from the issue of share capital and securities premium. Investing activities resulted in a net outflow of ₹(7.72) crore, largely due to investments in non-current assets and current investments.

Utilization of IPO Proceeds

The board adopted the statement of utilization of issue proceeds raised through the Initial Public Offering (IPO). The company raised ₹21.65 crore, listing on BSE Limited on August 6, 2025. As of March 31, 2026, the company had utilized ₹10.62 crore of the total proceeds. The primary utilization included ₹3.72 crore for capital expenditure towards a new manufacturing facility and ₹4 crore for working capital requirements. The unutilized amount of ₹11.03 crore is temporarily lying in a separate bank account.

Management attributed the revenue growth to the pursuit of selected high-volume business opportunities and an expanded customer base, while noting that profitability was impacted by fluctuations in raw material prices. The company confirmed that it does not have any subsidiary, associate, or joint venture as of March 31, 2026.