Pearl Polymers Reports Mixed Q2 Results with Revenue Growth and Profit Decline
Pearl Polymers Limited, a PET bottle manufacturer, released Q2 FY2026 results. Revenue increased 9.03% quarter-on-quarter to ₹492.56 lakhs, but net profit fell 85% to ₹8.55 lakhs. Half-year revenue was ₹1,352.16 lakhs with ₹95.65 lakhs net profit, showing improvement from previous year's loss. Total assets slightly decreased to ₹4,046.95 lakhs, while investments rose to ₹2,718.47 lakhs. The company faces profitability challenges despite revenue growth.
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Pearl Polymers Limited , a manufacturer of PET bottles, jars, and containers, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a mixed picture with revenue growth but a decline in profitability compared to the previous quarter.
Revenue and Profit Analysis
For Q2 FY2026, Pearl Polymers reported:
| Metric | Q2 FY2026 | Q1 FY2026 | Q2 FY2025 | H1 FY2026 | H1 FY2025 |
|---|---|---|---|---|---|
| Revenue from Operations (₹ in lakhs) | 492.56 | 451.78 | 449.60 | 941.38 | 1,025.33 |
| Net Profit (₹ in lakhs) | 8.55 | 57.00 | 23.18 | 95.65 | 152.42 |
| EPS (₹) | 0.10 | 1.72 | 0.14 | 0.57 | 0.91 |
The company's revenue from operations in Q2 FY2026 increased by 9.03% compared to Q1 FY2026 and by 9.55% year-over-year. However, net profit for the quarter decreased significantly to ₹8.55 lakhs from ₹57.00 lakhs in the previous quarter, marking an 85.00% decline.
Half-Year Performance
For the half-year ended September 30, 2025:
- Total revenue stood at ₹1,352.16 lakhs, compared to ₹1,523.45 lakhs in H1 FY2025.
- Net profit was ₹95.65 lakhs, down from ₹152.42 lakhs in the same period last year.
- The company reported a positive turnaround from a loss of ₹527.13 lakhs in the previous year to a profit of ₹95.65 lakhs.
Balance Sheet Highlights
As of September 30, 2025:
- Total assets stood at ₹4,046.95 lakhs, slightly lower than ₹4,085.21 lakhs as of March 31, 2025.
- The company's equity (including share capital and other equity) increased to ₹3,415.61 lakhs from ₹3,320.04 lakhs.
- Cash and cash equivalents decreased to ₹66.15 lakhs from ₹110.69 lakhs at the beginning of the financial year.
Cash Flow and Investments
The cash flow statement reveals:
- Net cash used in operating activities was ₹347.99 lakhs.
- Investing activities generated a net cash inflow of ₹305.01 lakhs, primarily from the sale of investments.
- The company's investments increased to ₹2,718.47 lakhs from ₹2,652.01 lakhs, indicating a focus on financial asset management.
Management Commentary
The Board of Directors approved these results at their meeting held on November 13, 2025. The company continues to operate in a single reportable segment, focusing on trading bottles, jars, and containers under the "Pearl Pet" brand.
Outlook
While Pearl Polymers has shown revenue growth, the significant decrease in quarterly profit may raise concerns. The company's increased investment portfolio and positive half-yearly results compared to the previous year's loss suggest efforts to improve financial performance. However, the decrease in cash and cash equivalents might indicate challenges in working capital management.
Investors and stakeholders may want to monitor the company's ability to convert revenue growth into sustained profitability in the coming quarters.
Historical Stock Returns for Pearl Polymers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -1.66% | -9.38% | -7.53% | -21.78% | +66.56% |
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