Mehul Colours FY26 revenue rises 33.2% to ₹30.40 crore
Mehul Colours Limited reported a 33.2% increase in revenue to ₹30.40 crore for FY26, with a net profit of ₹5.22 crore. The company utilized IPO proceeds for capital expenditure and working capital, while managing increased material costs and expanding its customer base.
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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.
| Particulars | Year Ended 31-03-2026 (₹ in Lakhs) | Year Ended 31-03-2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from operations | 3,040.32 | 2,282.27 |
| Total Income | 3,181.16 | 2,371.25 |
| Total Expenses | 2,477.68 | 1,630.92 |
| Profit before tax | 703.48 | 740.33 |
| Net Profit | 522.29 | 550.30 |
| Earnings per share (₹) | 4.95 | 7.30 |
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.
Historical Stock Returns for Mehul Colours
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +7.69% | +7.78% | +14.75% | -7.89% | -18.63% | -18.63% |
How does the company plan to deploy the remaining ₹11.03 crore in unutilized IPO proceeds?
Will the increase in paid-up equity share capital dilute earnings per share further in the coming year?
What measures is management taking to mitigate the impact of raw material price fluctuations on profitability?
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