Xpro India Limited reported a standalone net profit of ₹978.61 lacs for the quarter ended June 30, 2026 (Q1FY26), a 127% increase compared to ₹430.20 lacs in the corresponding quarter of the previous year. The company’s revenue from operations grew 20% year-on-year to ₹17,442.08 lacs, reflecting robust demand in its polymer processing business. Consolidated net profit attributable to owners of the company was ₹794.30 lacs, reversing a loss of ₹548.40 lacs in Q1FY25.

The Board of Directors approved the unaudited standalone and consolidated financial results at a meeting held on July 31, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Walker Chandiook & Co LLP, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34).

Financial Performance

Standalone total income reached ₹17,886.34 lacs, up from ₹14,789.12 lacs in Q1FY25. This growth was primarily driven by a rise in revenue from operations to ₹17,442.08 lacs from ₹14,490.20 lacs. Other income contributed ₹444.26 lacs, compared to ₹298.92 lacs in the prior year period.

Total expenses increased to ₹16,514.36 lacs from ₹14,185.49 lacs. Cost of materials consumed rose to ₹13,340.52 lacs from ₹10,364.44 lacs, aligning with the higher production volumes. Employee benefits expense grew to ₹984.17 lacs from ₹887.85 lacs. Finance costs more than doubled to ₹209.33 lacs from ₹98.34 lacs, while depreciation and amortisation expenses increased to ₹490.28 lacs from ₹283.67 lacs.

Consolidated Results and Segment Data

On a consolidated basis, including subsidiary Xpro Dielectric Films FZ-LLC, revenue from operations remained at ₹17,442.08 lacs. Total consolidated expenses were ₹16,685.35 lacs, leading to a profit before tax of ₹1,156.15 lacs. The consolidated net profit for the period was ₹762.78 lacs.

The Group operates predominantly in the "Polymer Processing" segment. Segment results before other income and finance cost were ₹1,589.61 lacs for the quarter, compared to a loss of ₹252.39 lacs in Q1FY25. The India segment contributed positively with segment results of ₹1,627.33 lacs, while the Outside India segment reported a loss of ₹37.72 lacs.

What the Numbers Show

A key driver of the improved profitability is the reversal of foreign exchange impacts. In Q1FY25, the company faced significant unrealised losses on translation due to Euro-denominated export credit insurance-backed supplier credits. For Q1FY26, the company recorded an unrealised gain on translation of ₹81.71 lacs (standalone) and a realised gain of ₹13.95 lacs. This contrasts sharply with an unrealised loss of ₹749.69 lacs in the same quarter last year. Management noted that these fluctuations may reverse over the long-term tenure of the credits.

Other Disclosures

Basic earnings per share (EPS) stood at ₹4.17 for the standalone results, up from ₹1.93 in Q1FY25. Diluted EPS was also ₹4.17, as the impact of convertible warrants was anti-dilutive. The company paid a dividend of ₹2 per equity share for FY25, approved at the Annual General Meeting held on July 20, 2026, and disbursed on July 28, 2026.

As of June 30, 2026, the unutilised portion of net proceeds from the issue and conversion of warrants into equity shares, amounting to ₹7,326.39 lacs, was held in bank deposits pending final utilisation.

Xpro India Limited declared a dividend of ₹2 per ordinary share for the financial year ended March 31, 2026, during its 29th Annual General Meeting held on July 20, 2026. The company also approved the appointment of Girish Behal as Managing Director for a three-year term starting January 1, 2027. These decisions were taken alongside strategic updates regarding capacity expansion in the dielectric films segment, which is being prioritized as a key growth driver.

The meeting, chaired by Sri Sidharth Birla, was conducted via Video Conferencing. Shareholders approved seven items, including the adoption of financial statements and the re-appointment of directors. The remote e-voting process was facilitated by MUFG Intime India Private Limited from July 17 to July 19, 2026.

Strategic Expansion and Capacity

The Chairman highlighted that dielectric films are a strategic priority. The company commissioned a second line in March, doubling capacity to 8,000 MT. Xpro Dielectric Films, the UAE subsidiary, is commissioning a third line this year, which will increase total capacity to 13,000 MT. A leading UAE investor acquired a 15% equity stake in the subsidiary at a premium, validating the venture's prospects.

Management indicated that more than 20 new dielectric film lines are needed globally by 2030. The company plans to build a fourth line in the UAE and a fifth in India, contingent on economic conditions.

Leadership Changes and Governance

Sri C. Bhaskar will step down as Managing Director on December 31, 2026, after 26 years on the Board and 44 years with the company. Sri H. Bakshi, with 32 years of service, will also conclude his executive responsibilities. Both will transition to the Chairman's Office as mentors. Girish Behal, currently President and CEO, is proposed to take over as Managing Director from January 1, 2027.

Resolutions Passed

The Chairman confirmed there were no qualifications or adverse remarks in the Auditors' Report or the Secretarial Audit Report. Sri Girish Bhatia was appointed as the Scrutiniser for the e-voting process.