Xpro India reported a sharp turnaround in profitability for the quarter ended June 30, 2026, with net profit after tax (PAT) rising 127.9% year-on-year to ₹9.8 crore from ₹4.3 crore in Q1FY26. The strong bottom-line performance was driven by a 9% increase in sales volumes, which outpaced the industry's refrigerator production growth of 4%, alongside higher average selling prices (ASPs) supported by raw material pass-throughs and a favorable product mix. This performance underscores the company's ability to gain market share despite global geo-political uncertainties and rising polymer costs.

Financial Performance

Revenue from operations grew 20.4% to ₹174.4 crore in Q1FY27, up from ₹144.9 crore in the corresponding period of FY26. EBITDA rose to ₹16.2 crore from ₹6.9 crore in Q1FY26, with EBITDA margin expanding to 9.33% from 4.74%. Profit before tax (PBT) surged 128.3% to ₹13.7 crore, benefiting from operational efficiencies and scale.

Operational Highlights

The dielectric films business maintained its strong market position, with continued onboarding of new customers and qualification for new applications supporting the ramp-up of recently expanded capacity. In contrast, the COEX Cast Films segment recorded lower volumes due to prevailing market conditions, though management remains focused on product mix optimization and de-bottlenecking production capacity. The conflict in West Asia contributed to higher polymer prices across the value chain, impacting input costs but also enabling ASP increases.

Expansion Updates

A new dielectric film line commissioned at Barjora on March 27, 2026, has doubled India's nameplate capacity from 4,000 to 8,000 MT annually. Initial supplies to domestic and international customers have received encouraging feedback, with full product range development underway. Meanwhile, the UAE project (Xpro Dielectric Films FZ-LLC) faces minor delays due to shipping disruptions caused by the Middle East conflict, affecting the arrival of utility equipment and raw materials. Mechanical installation of key production equipment is nearly complete, and the company continues to monitor developments closely.

What the Numbers Show

The 9% volume growth against a 4% industry backdrop signals genuine market share gains, positioning Xpro India for stronger leverage as new capacities come online. The significant surge in PAT (127.9%) reflects effective cost management and favorable operating leverage, while the expansion of EBITDA margin to 9.33% from 4.74% underscores improved profitability at the operating level. Together, these metrics highlight a company gaining competitive ground while investing ahead of capacity-led growth.

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.