Virgo Polymers net profit falls 73% YoY to ₹2.0 lakh in Q1FY27
Virgo Polymers reported a 73% YoY fall in Q1FY27 net profit to ₹2.0 lakh, driven by a 47% drop in operational revenue to ₹843.1 lakh. While other income rose to ₹386.8 lakh, employee benefit expenses surged six-fold. The Board approved the results on August 12, 2026, alongside administrative changes including new internal auditors.
*this image is generated using AI for illustrative purposes only.
Virgo Polymers (India) Limited reported a sharp decline in standalone profitability for the quarter ended June 30, 2026, as revenue and profit metrics contracted significantly compared to the prior year. The company posted a net profit of ₹2.0 lakh, down from ₹7.5 lakh in the corresponding quarter of FY25, representing a 73% year-on-year decline.
Revenue from operations fell 47% to ₹843.1 lakh, compared to ₹1,592.3 lakh in Q1FY26. This operational slowdown was partially offset by a rise in other income, which increased to ₹386.8 lakh from ₹332.1 lakh in the previous year. Total revenue stood at ₹1,229.9 lakh, down from ₹1,924.4 lakh in Q1FY26.
Financial Performance
The company’s total expenses decreased to ₹1,227.9 lakh from ₹1,916.9 lakh in the same quarter last year. Key expense drivers included:
- Purchases of stock in trade: ₹700.7 lakh (down from ₹1,279.2 lakh)
- Employee benefit expenses: ₹280.7 lakh (up from ₹48.8 lakh)
- Raw material consumed: ₹84.0 lakh (down from ₹116.7 lakh)
Profit before tax was ₹2.0 lakh, unchanged from the pre-tax figure due to no tax expense recorded for the quarter. Earnings per share (basic and diluted) stood at ₹0.1, compared to ₹0.2 in Q1FY25.
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Revenue from Operations | ₹843.1 lakh | ₹1,592.3 lakh | -47% |
| Total Revenue | ₹1,229.9 lakh | ₹1,924.4 lakh | -36% |
| Net Profit | ₹2.0 lakh | ₹7.5 lakh | -73% |
| EPS (Basic & Diluted) | ₹0.1 | ₹0.2 | -50% |
What the Numbers Show
While operational revenue declined sharply, other income constituted 31% of total revenue in Q1FY27, up from 17% in Q1FY26. This shift highlights a growing reliance on non-operating income sources during a period of reduced core business activity. Employee benefit expenses rose nearly six-fold to ₹280.7 lakh despite the revenue drop, suggesting fixed cost pressures or one-time personnel-related outflows that did not scale with lower production volumes.
Corporate Actions
During its board meeting held on August 12, 2026, Virgo Polymers approved several administrative changes:
- Appointment of M/s. Binay Kumar & Co., Chartered Accountants, as internal auditors for FY27, replacing M/s. DTSB & Associates who resigned on July 15, 2026.
- Transfer of the company’s current bank account from State Bank of India, SME Maraimalai Nagar Branch, to SBI Anna Nagar, Chennai Branch.
- Sale of property located at C-44, SIDCO Industrial Estate, Maraimalai Nagar, Chengalpattu District, Tamil Nadu.
The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors, with a limited review report issued by statutory auditors Venkat & Rangaa LLP.
How will the sale of the Maraimalai Nagar property impact Virgo Polymers' liquidity and long-term operational capacity?
What strategic steps is management taking to address the six-fold increase in employee benefit expenses amidst falling revenue?
Is the company planning to reduce its reliance on other income, which now constitutes 31% of total revenue, to stabilize core profitability?
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