Voith Paper Fabrics India Q1 Results: Net profit rises 0.5% YoY to ₹126.43 million

Voith Paper Fabrics India Limited reported a net profit of ₹126.43 million for the first quarter ended June 30, 2026, reflecting a marginal year-on-year increase from ₹125.83 million in Q1FY25. While profitability remained stable, total income from operations declined slightly to ₹568.53 million from ₹575.84 million in the same period last year. The results were reviewed by the Audit Committee and approved by the Board of Directors on August 06, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company’s profit before tax stood at ₹171.90 million, compared to ₹168.17 million in Q1FY25. Earnings per share (basic and diluted) rose to ₹28.78 from ₹28.66 in the previous year’s quarter. The statutory auditors conducted a limited review of the unaudited standalone financial results, expressing an unmodified opinion. These figures exclude any exceptional items for the current quarter, although the company had recognized an exceptional item of ₹50.97 million in FY26 related to past service costs arising from the New Labour Codes.

Financial Performance Highlights

Metric	Q1FY26 (₹ Million)	Q1FY25 (₹ Million)	Change
Total Income from Operations	568.53	575.84	-1.3%
Profit Before Tax	171.90	168.17	+2.2%
Net Profit After Tax	126.43	125.83	+0.5%
EPS (Basic/Diluted)	₹28.78	₹28.66	+0.4%
Other Comprehensive Income	0.40	(0.25)	Positive Turn

Total comprehensive income for the period was ₹126.83 million, up from ₹125.58 million in Q1FY25. This improvement was driven by a positive other comprehensive income of ₹0.40 million, reversing a negative position of ₹0.25 million in the prior year quarter. Paid-up equity share capital remained unchanged at ₹43.93 million.

Impact of New Labour Codes

A significant disclosure in the filing relates to the Government of India’s consolidation of labour legislations into four codes, effective November 21, 2025. Under Ind AS 19, changes to employee benefit plans due to these legislative amendments are treated as plan amendments, requiring immediate recognition of past service costs in the statement of profit and loss. During FY26, Voith Paper Fabrics India recognized ₹50.97 million as an exceptional item for this purpose.

The company stated it continues to monitor the finalization of State Rules and any government clarifications regarding the New Labour Codes. It will provide appropriate accounting effects in relevant periods based on future developments. This proactive monitoring highlights the potential for future financial adjustments as regulatory frameworks evolve.

What the Numbers Show

Despite a slight contraction in top-line revenue, Voith Paper Fabrics India managed to improve its bottom line, indicating effective cost management or favorable mix shifts within operations. The stability in net profit amidst declining revenue suggests operational resilience. Furthermore, the reversal in other comprehensive income contributes positively to overall equity growth. Investors should note the one-time exceptional charge already accounted for in FY26, which may shield future quarters from similar large-scale adjustments unless new state-specific rules emerge.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.13%	+3.03%	+0.06%	-7.90%	-25.94%	+24.55%

Voith Paper Fabrics India Limited reported its unaudited financial results for the quarter ended June 30, 2026, approved by the Board of Directors at their meeting held on August 6, 2026. The company posted a net profit of Rs. 126.43 million for the quarter, reflecting a marginal year-on-year improvement from Rs. 125.83 million in the year-ago period. EBITDA for the quarter rose to Rs. 161 million from Rs. 156 million in the corresponding quarter of the previous year, with the EBITDA margin expanding to 30.87% from 29.56% year-on-year. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and have received an unmodified limited review conclusion from statutory auditors Price Waterhouse Chartered Accountants LLP.

Quarterly Financial Performance

Revenue from operations for the quarter stood at Rs. 521 million, slightly lower compared to Rs. 528 million in the year-ago period. Total income for Q1FY27 came in at Rs. 568.53 million, against Rs. 575.84 million in Q1FY26 and Rs. 582.38 million in the preceding quarter ended March 31, 2026. Other income contributed Rs. 47.07 million to the total income for the quarter.

The following table provides a comparative overview of key financial metrics across periods:

Metric:	Q1FY27 (Jun 30, 2026)	Q4FY26 (Mar 31, 2026)	Q1FY26 (Jun 30, 2025)	FY26 (Mar 31, 2026)
Revenue from Operations:	Rs. 521.46 million	Rs. 532.45 million	Rs. 527.75 million	Rs. 2,089.49 million
Other Income:	Rs. 47.07 million	Rs. 49.93 million	Rs. 48.09 million	Rs. 191.45 million
Total Income:	Rs. 568.53 million	Rs. 582.38 million	Rs. 575.84 million	Rs. 2,280.94 million
Total Expenses:	Rs. 396.63 million	Rs. 447.91 million	Rs. 407.67 million	Rs. 1,677.59 million
EBITDA:	Rs. 161 million	—	Rs. 156 million	—
EBITDA Margin:	30.87%	—	29.56%	—
Profit Before Tax:	Rs. 171.90 million	Rs. 119.93 million	Rs. 168.17 million	Rs. 552.38 million
Net Profit:	Rs. 126.43 million	Rs. 91.53 million	Rs. 125.83 million	Rs. 414.49 million
Total Comprehensive Income:	Rs. 126.83 million	Rs. 94.43 million	Rs. 125.58 million	Rs. 434.26 million

Expense Breakdown

Total expenses for the quarter ended June 30, 2026 stood at Rs. 396.63 million, lower than Rs. 407.67 million in Q1FY26 and significantly reduced from Rs. 447.91 million in the preceding quarter. The key expense components for Q1FY27 are detailed below:

Expense Component:	Q1FY27 (Rs. million)
Cost of Materials Consumed:	113.38
Purchases of Stock-in-Trade:	54.61
Changes in Inventories:	(9.73)
Employee Benefits Expense:	64.22
Depreciation Expense:	36.11
Finance Costs:	0.05
Other Expenses:	137.99
Total Expenses:	396.63

Employee benefits expense declined notably to Rs. 64.22 million in Q1FY27 from Rs. 97.49 million in the preceding quarter ended March 31, 2026, which had included exceptional items related to past service costs under the New Labour Codes framework.

Earnings Per Share and Equity

Basic and diluted earnings per share (EPS) for the quarter ended June 30, 2026 stood at Rs. 28.78, compared to Rs. 20.84 in the quarter ended March 31, 2026 and Rs. 28.66 in the quarter ended June 30, 2025. EPS figures are not annualised for the quarterly periods. Paid-up equity share capital remained unchanged at Rs. 43.93 million, with a face value of Rs. 10 per share.

Dividend and Corporate Developments

The Board of Directors, at their meeting held on May 20, 2026, recommended a final dividend at 100%, amounting to Rs. 10 per equity share (face value of Rs. 10 per equity share) for the financial year ended March 31, 2026. The payment of this dividend is subject to approval by shareholders at the ensuing Annual General Meeting. As on June 30, 2026, the company has no subsidiary, associate, or joint venture. The company operates as a single segment — manufacturing and selling of felts — as reviewed by the Chief Operating Decision Maker at an overall company level.

Exceptional Item and New Labour Codes

During the quarter ended March 31, 2026, an exceptional item of Rs. 14.54 million was recognised, and for the full year ended March 31, 2026, the exceptional item amounted to Rs. 50.97 million. These charges arose from past service costs recognised under Ind AS 19 following the Government of India's consolidation of multiple labour legislations into four unified labour codes, effective November 21, 2025. No exceptional item was recorded in the quarter ended June 30, 2026. The company stated it continues to monitor the finalisation of State Rules and any further government clarifications on the New Labour Codes, and will provide appropriate accounting treatment as developments occur.