Revathi Equipment Reports Mixed Q2 FY2026 Results with Revenue Growth and Profit Decline

Revathi Equipment , a manufacturer of equipment, has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with revenue growth but a significant decline in profitability.

Revenue Growth Amidst Challenging Environment

For the quarter ended September 30, 2025, Revathi Equipment reported a standalone revenue from operations of Rs 22.26 crores, marking a 12.94% increase compared to Rs 19.71 crores in the same quarter of the previous year. This growth in revenue suggests improved sales performance despite challenging market conditions.

Profit Margins Under Pressure

Despite the increase in revenue, the company's profitability took a substantial hit. Net profit after tax for Q2 FY2026 stood at Rs 0.32 crores, a sharp 88.15% decline from Rs 2.70 crores reported in the corresponding quarter of the previous year. This significant drop in profits indicates increased cost pressures and potential challenges in maintaining operational efficiency.

Half-Yearly Performance Reflects Broader Challenges

The company's performance for the first half of FY2026 further underscores the challenges faced:

The half-yearly figures show a substantial decline in both revenue and profitability compared to the previous year, reflecting broader market challenges and potential shifts in the business environment.

Strategic Expansion

In a move to diversify its operations, Revathi Equipment incorporated a new wholly-owned Limited Liability Partnership named Global Essential Mining Supplies LLP in April 2025. This strategic initiative may be aimed at exploring new business opportunities and potentially offsetting challenges in the core business.

Consolidated Performance

The company's consolidated results, which include two LLPs - Revathi Drilling Solutions LLP and the newly formed Global Essential Mining Supplies LLP - align closely with the standalone figures, indicating that the subsidiaries have not significantly impacted the overall financial picture in this quarter.

Looking Ahead

While Revathi Equipment has managed to grow its quarterly revenue, the sharp decline in profitability raises concerns about the company's ability to manage costs effectively in the current economic environment. The company's future performance may depend on how it addresses these challenges and leverages its new subsidiary in the coming quarters.