Radix Industries (India) Limited reported a net profit of ₹35.63 lakh for the quarter ended June 30, 2026, marking a 43% decline from the ₹62.75 lakh earned in the corresponding period of FY26. The company’s revenue from operations fell sharply by 58% year-on-year to ₹337.08 lakh, compared to ₹804.33 lakh in Q1FY26. This contraction highlights significant headwinds in the human hair processing business during the opening quarter of FY27.

The Board of Directors approved the unaudited financial results on July 24, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, Brahmayya & Co., Chartered Accountants, conducted a limited review of the results in accordance with Standard on Review Engagements (SRE) 2410 issued by the Institute of Chartered Accountants of India (ICAI). Managing Director G. Raghu Rama Raju signed off on the filings.

Financial Performance Overview

Total income stood at ₹337.83 lakh, comprising ₹337.08 lakh from operations and ₹0.75 lakh from other income. Total expenses were recorded at ₹290.22 lakh. Cost of materials consumed was ₹237.24 lakh, while employee benefits expense remained stable at ₹11.51 lakh compared to ₹10.81 lakh in Q1FY26. Finance costs decreased slightly to ₹1.89 lakh from ₹2.28 lakh in the prior year period.

Earnings per share (basic and diluted) declined to ₹0.24 per share from ₹0.42 per share in the previous year’s first quarter. The paid-up equity share capital remained unchanged at ₹1,500.72 lakh.

What the Numbers Show

The proportional decline in total expenses (60%) slightly outpaced the drop in revenue (58%), indicating some cost containment despite lower volume. However, the sharp fall in other income—from ₹13.59 lakh to ₹0.75 lakh—suggests reduced non-operational gains, which previously contributed to the bottom line. With no exceptional items or other comprehensive income reported, the core operational performance remains the primary driver of profitability.

Radix Industries (India) Ltd has approved its audited financial results for the quarter and full year ended March 31, 2026, at a board meeting held on May 12, 2026. The board meeting, convened at the company's registered office in Chivatam, Tanuku, West Godavari District, Andhra Pradesh, commenced at 1:00 PM and concluded at 1:30 PM. The results were submitted to BSE Limited in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, Brahmayya & Co., Chartered Accountants (Firm Reg. No. 000513S), issued an unmodified audit opinion on the annual financial results.

Financial Performance Overview

Radix Industries delivered a steady improvement in profitability for the full year, with net profit after tax rising to ₹319.70 lakhs from ₹262.73 lakhs in the previous year. Revenue from operations grew to ₹5,051.70 lakhs compared to ₹4,825.26 lakhs in the prior year. The following table presents the key financial highlights for the full year and the fourth quarter:

Expense Breakdown

Total expenses for FY26 stood at ₹4,712.52 lakhs, compared to ₹4,482.16 lakhs in FY25. The cost of materials consumed was the largest expense component at ₹4,015.97 lakhs for the full year, reflecting the company's primary business of human hair processing. Purchase of stock-in-trade amounted to ₹493.04 lakhs for FY26, while other expenses stood at ₹116.05 lakhs. Finance costs declined significantly to ₹8.13 lakhs from ₹26.04 lakhs in the prior year, while depreciation and amortisation increased to ₹35.11 lakhs from ₹12.98 lakhs. Employee benefits expense remained broadly stable at ₹44.22 lakhs versus ₹44.80 lakhs in FY25.

Balance Sheet Highlights

The company's total assets grew to ₹2,358.83 lakhs as at March 31, 2026, from ₹2,119.41 lakhs a year earlier. Cash and cash equivalents rose sharply to ₹1,245.63 lakhs from ₹594.74 lakhs, reflecting strong cash generation during the year. Total equity improved to ₹2,329.49 lakhs from ₹2,084.83 lakhs, supported by higher retained earnings. The company remained debt-free with nil borrowings under both current and non-current liabilities.

Cash Flow Summary

For the year ended March 31, 2026, net cash from operating activities stood at ₹657.36 lakhs, compared to ₹752.99 lakhs in the prior year. Net cash from investing activities was ₹79.52 lakhs, a reversal from the outflow of ₹18.76 lakhs in FY25, primarily driven by interest received of ₹80.55 lakhs. Cash used in financing activities was ₹86.34 lakhs, which included dividend payments of ₹75.04 lakhs and repayment of lease liabilities of ₹4.62 lakhs. The net increase in cash and cash equivalents for the year was ₹650.54 lakhs, with closing cash and cash equivalents at ₹1,245.63 lakhs comprising cash on hand of ₹1.06 lakhs and bank balances of ₹1,244.57 lakhs.

Dividend and Other Disclosures

The board has recommended a final dividend of ₹0.50 per equity share, representing 5% on the face value of ₹10 per share, for FY 2025-26. The dividend is subject to approval by shareholders at the ensuing Annual General Meeting. The company is primarily engaged in the processing of human hair, which constitutes the only reportable segment as per Ind AS 108. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013. The paid-up equity share capital remained unchanged at ₹1,500.72 lakhs (face value of ₹10 each). Managing Director G. Raghu Rama Raju (DIN: 00453895) signed the results on behalf of the company.