Shree Rama Multi-Tech Q1FY26 net profit rises 10% to ₹80.6 crore
Shree Rama Multi-Tech reported Q1FY26 net profit of ₹80.6 crore, up 10% YoY, driven by 45% revenue growth to ₹805.2 crore. EBITDA margin contracted by 330 bps to 16.8%. The Board approved the results and re-appointed Hemal R. Shah as Whole-Time Director.
*this image is generated using AI for illustrative purposes only.
Shree Rama Multi-Tech reported a net profit of ₹80.6 crore for the quarter ended June 30, 2026, rising 10% year-on-year from ₹73.5 crore. Revenue from operations grew 45% to ₹805.2 crore, up from ₹553.5 crore in the corresponding period last year, reflecting strong top-line momentum despite margin pressures.
The Board of Directors approved the unaudited financial results on August 13, 2026, after review by the Audit Committee. The results were subjected to a limited review by the statutory auditors, Mahendra N. Shah & Co., who issued a qualified conclusion due to the non-consolidation of accounts of its wholly owned subsidiary, Shree Rama (Mauritius) Limited, which has been declared defunct under Mauritius law.
Financial Highlights
| Metric: | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Revenue from operations: | ₹805.2 crore | ₹553.5 crore | +45% |
| EBITDA: | ₹135.3 crore | ₹111.3 crore | +21% |
| EBITDA Margin: | 16.8% | 20.1% | -330 bps |
| Net Profit: | ₹80.6 crore | ₹73.5 crore | +10% |
Note: EBITDA calculated as Profit before exceptional items and tax (₹111.9 crore) plus Depreciation (₹22.9 crore) and Finance Cost (₹2.3 crore). Prior year EBITDA calculated similarly.
Board Approvals and Corporate Actions
Alongside the financial results, the Board approved several key corporate actions:
- Re-appointment of Director: Hemal R. Shah was re-appointed as Whole-Time Director for a further period of three years, effective November 27, 2026, subject to member approval. He brings over 29 years of experience in the plastic and packaging industry.
- Preference Share Redemption: The Board extended the tenure for redemption of 7,66,666 15% Cumulative Redeemable Preference shares by five years from the original redemption date.
- AGM Schedule: The 32nd Annual General Meeting is scheduled for September 25, 2026, via video conferencing. The cut-off date for voting eligibility is September 18, 2026, with remote e-voting available from September 22 to September 24, 2026.
What the Numbers Show
The financial data reveals a divergence between revenue growth and profitability efficiency. While revenue accelerated at nearly double the rate of EBITDA growth (45% vs 21%), the net profit growth of 10% suggests that non-operating expenses or tax impacts absorbed some of the operating gains. The 330 basis point drop in EBITDA margin highlights that the revenue expansion came at a higher marginal cost than in the prior year, likely due to input inflation or mix shifts. Additionally, other income declined significantly to ₹2.3 crore from ₹15.0 crore in the previous quarter, contributing to the slower bottom-line growth relative to top-line expansion.
Historical Stock Returns for Shree Rama Multi-Tech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.93% | +4.02% | -7.25% | -34.42% | -8.76% | +233.25% |
What specific operational strategies is Shree Rama Multi-Tech implementing to reverse the 330 bps decline in EBITDA margins and restore profitability efficiency?
How will the five-year extension of the 15% Cumulative Redeemable Preference shares impact the company's future cash flow obligations and debt restructuring plans?
Given the qualified audit conclusion regarding the defunct Mauritius subsidiary, what steps are being taken to resolve the non-consolidation issue for future financial reporting?
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