Pentagon Rubber FY26 net profit falls 31.6% to ₹183.68 lakh
Pentagon Rubber Limited reported a 31.6% decline in net profit to ₹183.68 lakh for FY26, despite a 3.1% rise in revenue to ₹5,085.25 lakh. Total expenses increased, driven by higher finance and depreciation costs. The board approved the audited results on May 20, 2026, and the company re-submitted the filing to the exchange to address a legibility observation.
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Pentagon Rubber Limited reported a 31.6% decline in net profit to ₹183.68 lakh for the financial year ended March 31, 2026, compared to ₹268.46 lakh in the previous year. Revenue from operations rose 3.1% to ₹5,085.25 lakh from ₹4,932.09 lakh in FY25, while total revenue increased 3% to ₹5,141.75 lakh. The company's board approved the audited financial results on May 20, 2026, and statutory auditors S. Jain & Co. issued an unmodified opinion on the standalone financial statements.
The company's total expenses for FY26 increased to ₹4,824.78 lakh from ₹4,680.68 lakh in the prior year. Finance costs rose to ₹134.15 lakh from ₹96.08 lakh, and depreciation and amortization expenses increased to ₹89.30 lakh from ₹42.36 lakh. Profit before tax for the year stood at ₹316.96 lakh, a marginal increase from ₹311.00 lakh in the previous year. The basic and diluted earnings per share for FY26 were 2.38, down from 3.48 in the previous year.
Financial Performance
The half-year performance for the period ended March 31, 2026, showed a profit of ₹120.73 lakh, compared to ₹175.91 lakh in the same period of the previous year. Revenue from operations for the half year decreased to ₹2,410.87 lakh from ₹2,502.29 lakh. The company's paid-up equity share capital remained unchanged at ₹771.00 lakh, while reserves and surplus increased to ₹2,605.32 lakh from ₹2,424.36 lakh.
Balance Sheet and Cash Flows
The company's total assets as of March 31, 2026, stood at ₹6,863.97 lakh, up from ₹5,942.28 lakh in the previous year. Current assets increased to ₹5,574.79 lakh, driven by higher trade receivables at ₹2,434.48 lakh and inventories at ₹2,307.69 lakh. Short-term borrowings rose significantly to ₹1,918.47 lakh from ₹1,112.26 lakh. Cash and cash equivalents improved marginally to ₹743.65 lakh from ₹729.87 lakh.
| Particulars | FY26 (₹ in lakh) | FY25 (₹ in lakh) |
|---|---|---|
| Revenue from Operations | 5,085.25 | 4,932.09 |
| Total Revenue | 5,141.75 | 4,991.68 |
| Total Expenses | 4,824.78 | 4,680.68 |
| Profit Before Tax | 316.96 | 311.00 |
| Net Profit | 183.68 | 268.46 |
| Earnings Per Share (Basic) | 2.38 | 3.48 |
Regulatory Disclosures
The company clarified that it had re-submitted the financial results to the National Stock Exchange of India to address an observation regarding the non-submission of a machine-readable copy. The statutory auditors confirmed in their report that the company has not declared any dividends during the year. The auditors also noted that the company has an adequate internal financial controls system operating effectively as of March 31, 2026.
Historical Stock Returns for Pentagon Rubber
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.83% | +1.57% | -10.62% | -19.31% | -10.13% | -52.96% |
What strategies will management implement to control rising finance costs and depreciation expenses to restore net profit margins?
How does the company plan to manage the significant increase in short-term borrowings and its impact on future liquidity?
Will the company consider declaring dividends in the next fiscal year given the increase in reserves and surplus?
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