Cheviot Company Limited , a leading player in the jute goods sector, has announced its financial results for the quarter ended September 30, 2025, revealing a mixed performance marked by significant revenue growth but a substantial decline in net profit.

Revenue Growth and Profitability

The company reported a substantial increase in revenue for the quarter:

Cheviot's revenue from operations showed a remarkable year-on-year growth of 44.00%, rising to ₹14,821.00 lakhs in the quarter ended September 30, 2025, from ₹10,285.00 lakhs in the same quarter last year. This significant increase in top-line performance indicates strong demand for Cheviot's jute products.

However, despite the robust revenue growth, Cheviot Co experienced a 44.00% decline in net profit, which decreased to ₹1,484.00 lakhs from ₹2,633.00 lakhs in the corresponding quarter of the previous year. This reduction in profitability suggests that the company faced increased costs or other challenges that significantly impacted its bottom line.

Other Financial Highlights

• The company reported negative other income of ₹24.00 lakhs, primarily due to losses on fair valuation of investments measured at Fair Value through Profit and Loss (FVTPL).
• For the half-year period, net profit reached ₹4,355.00 lakhs compared to ₹4,470.00 lakhs in the corresponding period last year, showing a slight decrease.
• Basic earnings per share for the quarter stood at ₹25.40 versus ₹31.39 in the same quarter last year, reflecting the decline in profitability.

Business Segment and Structure

Cheviot Company Limited operates exclusively in the jute goods business segment. The company reported that it has no subsidiaries, associates, or joint ventures, indicating a focused business model centered on its core jute products.

Outlook and Challenges

The divergence between revenue growth and profit decline suggests that Cheviot Co may be facing significant cost pressures. Possible factors could include:

• Increased raw material costs
• Higher operational expenses
• Competitive pricing pressures in the jute goods market

While Cheviot Co faces challenges in maintaining profitability at previous levels, the substantial revenue growth provides a mixed outlook. The company's ability to continue growing its top line while addressing the factors impacting net profit will be crucial for its performance in the coming quarters.

Investors and market observers will likely keep a close eye on how Cheviot Co manages its cost structure and capitalizes on the strong demand for its products to improve overall profitability.

As the jute industry continues to evolve, Cheviot Co's performance in subsequent quarters will be important in determining its ability to balance growth with profitability in a dynamic market environment.

Cheviot Company Limited , a prominent player in the jute goods industry, has announced its financial results for the first quarter, showcasing robust growth in both revenue and profitability.

Financial Highlights

• Net Profit: ₹287.11 crore, up 8.3% year-over-year
• Revenue: ₹1,197.21 crore, a significant 27% increase from the previous year
• EBITDA: ₹19.90 crore, more than doubling from ₹8.30 crore in the same period last year
• EBITDA Margin: Improved to 16.6% from 8.8% year-over-year
• Other Income: ₹180.38 crore, contributing to overall performance

Quarterly Performance Breakdown

Cheviot Co has demonstrated strong financial performance in the first quarter. The company's revenue from operations saw a substantial increase of 26.4%, rising from ₹947.18 crore in the previous year's quarter to ₹1,197.21 crore in the current quarter. This growth in operational revenue underscores the company's ability to expand its market presence and capitalize on the demand for jute goods.

The net profit for the quarter stood at ₹287.11 crore, marking an 8.3% increase from ₹265.16 crore in the same period last year. This growth in profitability, albeit at a lower rate than revenue growth, suggests that the company has managed to maintain its bottom line despite potential increases in operational costs.

Operational Efficiency

A standout aspect of Cheviot Co's Q1 performance is the significant improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company reported an EBITDA of ₹19.90 crore, more than doubling from ₹8.30 crore in the same period last year. This substantial increase indicates enhanced operational efficiency and profitability.

Furthermore, the EBITDA margin saw a notable improvement, rising to 16.6% compared to 8.8% year-over-year. This expansion in margin suggests that Cheviot Co has successfully optimized its operations and cost structure, leading to higher profitability relative to its revenue.

While the company experienced robust growth in its core operations, it's worth noting that other income decreased by 26.2% year-over-year. Despite this reduction, Cheviot Co's total income still showed a healthy increase of 15.6%, reaching ₹1,377.59 crore for the quarter.

Market Position

As the sole significant primary business segment for Cheviot Co remains jute goods, the company's performance reflects the overall health of the jute industry. The substantial revenue growth and improved EBITDA indicate a potentially expanding market for jute products or successful market share gains by the company.

Looking Ahead

The positive first-quarter results set an optimistic tone for Cheviot Co's performance. The significant improvements in EBITDA and EBITDA margin, coupled with strong revenue growth, suggest that the company is well-positioned in the market. As the company continues to navigate the dynamic market conditions, investors and industry observers will be keen to see if this growth trajectory can be maintained in the coming quarters.