Responsive Industries FY26 net profit falls 25.4% on higher costs
Responsive Industries Limited reported a 25.4% decline in consolidated net profit to ₹14,842.70 lakh for FY26, driven by increased total expenses which rose to ₹1,24,928.43 lakh. Revenue from operations decreased to ₹1,39,411.82 lakh from ₹1,41,791.19 lakh in the previous year. For Q4 FY26, net profit dropped sharply to ₹2,282.28 lakh despite revenue rising to ₹43,033.99 lakh, with EBITDA margins contracting to 10.77%. The board recommended a final dividend of Re. 0.10 per share, subject to shareholder approval.

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Responsive Industries Limited reported a 25.4% decline in consolidated net profit to ₹14,842.70 lakh for the financial year ended March 31, 2026, compared to ₹19,886.17 lakh in the previous year. Revenue from operations for the year stood at ₹1,39,411.82 lakh, a decrease from ₹1,41,791.19 lakh in FY25. The board of directors recommended a final dividend of Re. 0.10 per equity share, subject to shareholder approval at the ensuing Annual General Meeting.
For the quarter ended March 31, 2026, the company recorded a consolidated net profit of ₹2,282.28 lakh, a significant drop from ₹5,424.87 lakh in the same quarter of the previous year. Revenue from operations for the quarter rose to ₹43,033.99 lakh from ₹38,066.05 lakh in the corresponding period last year. Total income for the quarter was ₹43,311.16 lakh. The company's statutory auditors, M/s. Shah & Taparia, issued an unmodified opinion on the audited standalone and consolidated financial results.
Consolidated Financial Performance
The consolidated financial results for the year ended March 31, 2026, reflect a contraction in profitability despite operational activity. Total expenses for the year increased to ₹1,24,928.43 lakh from ₹1,21,654.66 lakh in the prior year. Profit before tax for the year stood at ₹15,436.78 lakh, down from ₹20,977.80 lakh. The company reported an exceptional item of ₹54.13 lakh for the year related to the statutory impact of new Labour Codes.
| Metric | Year Ended March 31, 2026 (₹ in Lakhs) | Year Ended March 31, 2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 1,39,411.82 | 1,41,791.19 |
| Total Income | 1,40,419.34 | 1,42,632.46 |
| Total Expenses | 1,24,928.43 | 1,21,654.66 |
| Profit Before Tax | 15,436.78 | 20,977.80 |
| Net Profit | 14,842.70 | 19,886.17 |
Q4 Operating Performance
The quarter ended March 31, 2026, saw a sharp deterioration in operating profitability. Q4 EBITDA stood at ₹437M compared to ₹789M in the same quarter of the previous year, reflecting the pressure on margins during the period. The EBITDA margin contracted significantly to 10.77% from 20.72% year-on-year, underscoring the impact of rising costs on operational efficiency. The following table summarises the key Q4 metrics:
| Metric | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue | ₹4.3B | ₹3.8B |
| Net Profit | ₹228M | ₹542M |
| EBITDA | ₹437M | ₹789M |
| EBITDA Margin | 10.77% | 20.72% |
Standalone Results and Segment Reporting
On a standalone basis, the company reported a net profit of ₹1,407.66 lakh for FY26, a sharp decline from ₹3,172.18 lakh in the previous year. Revenue from operations for the standalone entity decreased to ₹54,115.12 lakh from ₹55,573.89 lakh. For the quarter ended March 31, 2026, standalone net profit was ₹191.23 lakh, while revenue from operations was ₹12,853.27 lakh. The company noted that its primary business segment consists of articles made out of PVC/Polymers, and as such, segment reporting requirements under Ind AS 108 are not applicable.
The board, in its meeting held on May 26, 2026, approved the audited financial results. The meeting commenced at 12:00 P.M. and concluded at 02:20 P.M. The company's subsidiaries include Responsive Industries Limited (Hong Kong), Responsive Industries LLC (USA), and Axiom Cordages Limited (Hong Kong). The auditors confirmed that the financial results give a true and fair view of the company's financial position.
Historical Stock Returns for Responsive Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.51% | +14.64% | +27.01% | -11.61% | -1.90% | +20.41% |
What specific cost drivers caused the sharp Q4 EBITDA margin contraction from 20.72% to 10.77%?
How will the implementation of the new Labour Codes impact operational expenses going forward?
Is the divergence between rising Q4 revenue and falling net profit indicative of a sustained pricing pressure or temporary cost inflation?


































