Roto Pumps Reports 65% Drop in Q2 Net Profit Despite Revenue Growth

Roto Pumps Limited , a leading manufacturer of industrial pumps, has reported a significant decline in its standalone net profit for the second quarter, despite showing growth in revenue. The company's financial results reveal a mixed performance, with increased revenue offset by a substantial drop in profitability.

Financial Highlights

Net Profit: Roto Pumps' standalone net profit for Q2 stood at ₹361.39 crore, marking a sharp 65% decrease from ₹1,037.97 crore in the previous quarter.
Revenue: The company's revenue from operations slightly declined to ₹4,875.30 crore from ₹5,162.79 crore in the previous quarter.
Half-Year Performance: For the first half, Roto Pumps achieved a net profit of ₹1,077.28 crore on a revenue of ₹10,038.09 crore.

Consolidated Performance

On a consolidated basis, Roto Pumps reported:

Q2 net profit of ₹595.81 crore
Revenue of ₹6,476.37 crore

Corporate Actions and Management Changes

Bonus Share Issuance: In July, Roto Pumps allotted bonus shares in a 2:1 ratio, effectively tripling the number of outstanding shares.
Key Appointment: The Board has appointed Mr. Mahesh Bhupal Kinikar as General Manager-Sales Service. Mr. Kinikar brings over 30 years of experience in sales, marketing, business development, and project management in the industrial capital goods sector.
Financial Support for Subsidiary: The Board has approved a USD 2 million standby letter of credit for its subsidiary, Roto Pumps MENA FZE. This move is expected to support the subsidiary's operations and indirectly benefit Roto Pumps Limited.

Analysis

The significant drop in net profit despite relatively stable revenue suggests that Roto Pumps faced increased costs or other challenges during the quarter. The company's decision to issue bonus shares may have impacted the earnings per share, although it also indicates confidence in the company's long-term prospects.

The appointment of Mr. Kinikar and the financial support for the MENA subsidiary demonstrate Roto Pumps' focus on strengthening its sales capabilities and supporting its international operations.

Investors and analysts will likely be watching closely to see how Roto Pumps addresses the profitability challenges in the coming quarters, and whether the new management appointment and support for international operations will help drive growth and improve bottom-line performance.

As the industrial pump sector is often considered a barometer for broader industrial activity, Roto Pumps' performance may also offer insights into the overall health of the industrial sector in India and its key markets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.11%	-1.98%	-9.84%	-20.57%	-19.45%	+74.20%

Roto Pumps , a leading manufacturer of industrial pumps, has reported a decline across key financial metrics for the second quarter of the fiscal year. The company's performance shows a significant downturn compared to the same period last year, reflecting challenging market conditions.

Revenue and Profit Decline

The company's financial results reveal a notable decrease in revenue and profitability:

Financial Metric	Q2 Current Year	Q2 Previous Year	Change
Revenue	₹648.00 million	₹846.00 million	-23.40%
Net Profit	₹60.00 million	₹114.00 million	-47.40%
EBITDA	₹117.00 million	₹194.00 million	-39.70%
EBITDA Margin	18.04%	22.94%	-4.90 pp

The revenue for the quarter stood at ₹648.00 million, marking a 23.40% decrease from ₹846.00 million in the corresponding quarter of the previous year. This significant drop in top-line performance indicates a challenging operating environment for the company.

Profitability Under Pressure

Roto Pumps experienced a sharp decline in net profit, which fell to ₹60.00 million from ₹114.00 million year-over-year, representing a 47.40% decrease. This substantial reduction in bottom-line results suggests that the company faced increased cost pressures or operational challenges during the quarter.

EBITDA and Margin Compression

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a significant decrease:

EBITDA declined to ₹117.00 million from ₹194.00 million in the same quarter last year, a 39.70% reduction.
The EBITDA margin compressed to 18.04% from 22.94%, indicating a decrease of 4.90 percentage points.

This margin compression points to potential challenges in maintaining operational efficiency or managing costs effectively during the quarter.

Management Appointment

In a separate development, Roto Pumps has announced the appointment of Mr. Mahesh Bhupal Kinikar as General Manager - Sales & Service, effective November 12, 2025. Mr. Kinikar brings over 30 years of experience in sales, marketing, business development, and project management in the industrial capital goods sector. His expertise spans industries such as Steel, Cement, Power, and Oil & Gas, which aligns well with Roto Pumps' business focus.

Looking Ahead

While the current quarter's results show a decline across key financial metrics, the appointment of an experienced professional in a key management role may signal the company's efforts to strengthen its sales and service capabilities. Investors and stakeholders will likely be watching closely to see how these changes and market conditions impact Roto Pumps' performance in the coming quarters.

As the industrial pump sector is often considered a barometer for broader industrial activity, Roto Pumps' performance may also provide insights into the overall health of the industrial sector. The company's ability to navigate these challenges and potentially return to growth will be crucial in the near to medium term.