Responsive Industries FY26 net profit falls 25.4% on higher costs

2 min read     Updated on 26 May 2026, 03:29 PM
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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 Day5 Days1 Month6 Months1 Year5 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?

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Responsive Industries appoints Aayush Agarwal as Non-Executive Chairperson

1 min read     Updated on 26 May 2026, 03:18 PM
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Responsive Industries Limited has appointed Mr. Aayush Agarwal as Non-Executive Non-Independent Director & Chairperson effective May 26, 2026, pending shareholder approval. With a decade of experience at the company, Mr. Agarwal has focused on digital transformation and operational governance. The Board approved the appointment following the Nomination and Remuneration Committee's recommendation.

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Responsive Industries Limited has appointed Mr. Aayush Agarwal as the Non-Executive Non-Independent Director & Chairperson of the company, effective May 26, 2026. The decision was taken by the Board of Directors during a meeting held on Tuesday, based on the recommendation of the Nomination and Remuneration Committee. This leadership transition is subject to the approval of the shareholders.

Mr. Aayush Agarwal (DIN: 11031351) has been appointed as an Additional Director. He is a graduate in Bachelor of Business Administration, with majors in Economics & Finance, from the American University in Dubai. The company disclosed that he is not related to any other director on the board and is not debarred from holding the position of director by any SEBI order or other authority.

The appointment follows Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related circulars regarding corporate governance disclosures. The meeting, where this decision was finalized, commenced at 12.00 P.M. and concluded at 02.20 P.M.

Profile of the Appointee

Mr. Agarwal brings approximately 10 years of diversified experience to the role. His profile highlights a history of driving sales, process re-engineering, and operational excellence specifically within Responsive Industries Limited. He is credited with modernizing traditional manufacturing operations into data-driven, technology-enabled systems through workflow automation and cross-functional leadership.

Particulars Details
Name Mr. Aayush Agarwal
DIN 11031351
Designation Non-Executive Non-Independent Director & Chairperson
Date of Appointment May 26, 2026
Qualification Bachelor of Business Administration (Economics & Finance)
Experience Approximately 10 years

Historical Stock Returns for Responsive Industries

1 Day5 Days1 Month6 Months1 Year5 Years
+2.51%+14.64%+27.01%-11.61%-1.90%+20.41%

How will Mr. Agarwal's background in data-driven manufacturing influence the company's long-term strategic roadmap?

What specific operational changes can stakeholders expect following the leadership transition in May 2026?

How will the market react to the appointment of an internal candidate with 10 years of company-specific experience?

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