Sampat Aluminium FY26 Results: Revenue up 34%, net profit falls 14%
- Revenue grew 34% YoY to ₹1,780.1 crore driven by post-IPO volume expansion
- Net profit fell 14% to ₹5.9 crore as cost of materials rose faster than sales
- No dividend declared; board prioritizes capital retention for future contingencies
- Contingent GST liability stands at ₹1,541.2 lakh pending final adjudication
- Auditors flagged CSR fund transfer delays and bank statement variances
*this image is generated using AI for illustrative purposes only.
Sampat Aluminium reported a 34% year-on-year rise in revenue to ₹1,780.1 crore for the financial year ended March 2026, driven by volume growth following its initial public offering. However, net profit declined 14% to ₹5.9 crore, reflecting higher operating costs and tax provisions.
The company’s AGM is scheduled for September 26, 2026, where shareholders will approve the audited financials and reappoint key directors. The board has decided against recommending a dividend for FY26 to preserve capital for future contingencies.
Financial Performance
Revenue from operations grew significantly from ₹1,327.2 crore in FY25 to ₹1,780.1 crore in FY26. Despite this top-line expansion, total expenses rose sharply to ₹1,706.6 crore from ₹1,237.2 crore the previous year. This divergence resulted in a lower profit before tax of ₹744.3 crore compared to ₹927.8 crore in FY25.
| Metric | FY26 (₹ crore) | FY25 (₹ crore) | Change |
|---|---|---|---|
| Revenue from Operations | 178.0 | 132.7 | +34% |
| Total Expenses | 170.7 | 123.7 | +38% |
| Profit Before Tax | 74.4 | 92.8 | -20% |
| Net Profit After Tax | 59.4 | 68.9 | -14% |
Other income dropped to ₹9.4 lakh from ₹28.2 lakh, while finance costs decreased to ₹157.8 lakh from ₹216.4 lakh, indicating reduced borrowing costs despite higher working capital needs.
What the Numbers Show
The decline in profitability despite strong revenue growth highlights margin pressure. Cost of material consumed rose by 35% to ₹1,610.9 crore, outpacing revenue growth. Additionally, freight outward expenses surged to ₹45.4 lakh from ₹2.1 lakh, suggesting increased distribution costs or logistical shifts that impacted operational efficiency.
Balance Sheet and Capital Structure
The company raised ₹2,885.1 lakh through its IPO during the year, strengthening its equity base. Share capital increased to ₹848.1 lakh from ₹593.7 lakh. Long-term borrowings stood at ₹829.8 lakh, while short-term borrowings were ₹1,159.5 lakh. Inventories grew to ₹433.7 lakh, reflecting stockpiling ahead of anticipated demand.
Regulatory and Compliance Updates
Auditors flagged several compliance issues. The company failed to transfer unspent CSR funds of ₹13.2 lakh to the specified Schedule VII fund within six months of the fiscal year-end. Additionally, there was a non-compliance with maintaining the Structured Digital Database for insider trading regulations.
A significant contingent liability of ₹1,541.2 lakh exists regarding disputed Goods and Services Tax demands from earlier years. The management has filed appeals, but the outcome remains pending adjudication. Auditors also noted variations exceeding 10% between quarterly stock statements submitted to banks and the books of account for September 2025 and March 2026, attributed to timing differences in provisional reporting.
Historical Stock Returns for Sampat Aluminium
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.31% | +2.24% | +5.01% | -26.61% | 0.0% | 0.0% |
How does Sampat Aluminium plan to mitigate the rising cost of materials and freight to restore net profit margins in FY27?
What is the management's strategy for resolving the ₹1,541.2 lakh GST contingent liability, and how might an adverse ruling impact future cash flows?
Given the decision to skip dividends to preserve capital, what specific growth initiatives or capacity expansions are prioritized for the upcoming fiscal year?
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