Sarup Industries Q1 Results: Net profit falls 53% YoY to ₹5.48 lakh
Sarup Industries posted a net profit of ₹5.48 lakh in Q1FY27, down 53% YoY, as revenue fell 16.7% to ₹309.86 lakh. Other income surged to ₹17.46 lakh, offsetting some operational declines. Finance costs stayed stable at ₹27.96 lakh. Promoter holding remains at 74.36% with no pledges.
*this image is generated using AI for illustrative purposes only.
Sarup Industries Limited reported a net profit of ₹5.48 lakh for the quarter ended June 30, 2026, marking a significant decline from the ₹11.60 lakh recorded in the corresponding period of FY25. The shoe manufacturer’s revenue from operations fell 16.7% year-on-year to ₹309.86 lakh, down from ₹392.67 lakh in Q1FY26.
The Board of Directors approved the unaudited financial results at its meeting held on August 14, 2026. The figures were reviewed by the Audit Committee and subjected to a limited review by statutory auditors M/s Y.K. Sud & Co.
Financial Performance Overview
The company’s total income stood at ₹327.32 lakh, compared to ₹392.79 lakh in Q1FY25. Despite the decline in core operating revenue, other income saw a substantial increase, rising to ₹17.46 lakh from just ₹0.12 lakh in the prior year quarter. This surge in non-operating income partially cushioned the impact of lower sales on the bottom line.
| Metric: | Q1FY27 (Unaudited): | Q1FY26 (Unaudited): | Change: |
|---|---|---|---|
| Revenue from Operations: | ₹309.86 lakh | ₹392.67 lakh | -16.7% |
| Other Income: | ₹17.46 lakh | ₹0.12 lakh | +14,450% |
| Total Income: | ₹327.32 lakh | ₹392.79 lakh | -16.7% |
| Net Profit Before Tax: | ₹5.48 lakh | ₹11.60 lakh | -52.8% |
| Net Profit After Tax: | ₹5.48 lakh | ₹11.60 lakh | -52.8% |
| EPS (Basic): | ₹0.17 | ₹0.36 | -52.8% |
Expenses for the quarter totaled ₹321.84 lakh, down from ₹381.18 lakh in Q1FY25. Cost of materials consumed decreased to ₹98.67 lakh from ₹156.94 lakh, reflecting lower production volumes aligned with reduced sales. Employee benefit expenses also contracted to ₹86.42 lakh from ₹102.77 lakh. However, finance costs remained relatively stable at ₹27.96 lakh, compared to ₹26.01 lakh in the previous year quarter.
What the Numbers Show
A notable divergence exists between the company’s operational performance and its non-operating income streams. While revenue from operations declined by nearly 17%, other income skyrocketed to ₹17.46 lakh, constituting approximately 53% of the total pre-tax profit of ₹5.48 lakh when combined with the small operating margin. This indicates a heavy reliance on non-core income sources to sustain profitability during a period of contracting top-line growth. The absence of tax expenses in both periods suggests the company is not currently liable for corporate tax, likely due to low taxable income or available losses carried forward.
The company operates in a single segment: manufacturing of shoes and shoe uppers. As of the end of the quarter, promoter holding stood at 74.36%, with no shares pledged. Public shareholding remained unchanged at 25.64%. There were no investor complaints received or pending during the quarter.
Historical Stock Returns for Sarup Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.04% | -3.19% | -2.44% | -22.23% | +39.94% | +495.51% |
What specific strategic initiatives is Sarup Industries implementing to reverse the 16.7% decline in core operational revenue for the upcoming quarters?
How sustainable is the reliance on non-operating income, which now constitutes over 50% of pre-tax profit, given the volatility of such revenue streams?
Will the company need to raise additional capital or restructure its debt to manage stable finance costs amidst shrinking operating margins?
19
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
