Somi Conveyor Beltings Limited, a manufacturer of industrial conveyor belts, has announced its unaudited financial results for the second quarter and half year ended September 30, 2025, showing improved profitability despite revenue challenges, while continuing its capacity expansion efforts.

Financial Performance

The company reported a quarterly profit after tax of Rs 2.38 crores for Q2 FY2026, compared to Rs 2.02 crores in the corresponding quarter of the previous year, marking an increase of 17.8%. This growth in profitability comes despite a decrease in revenue from operations.

Key financial highlights for Q2 FY2026:

Operational Highlights

The company's Board of Directors approved these financial results in their meeting held on November 14, 2025. Despite the challenging market conditions reflected in the reduced revenue, Somi Conveyor Beltings has managed to maintain profitability through cost management and operational efficiencies.

Expansion Plans

Somi Conveyor Beltings is currently undergoing a production expansion, focusing on its Mixing Line. The company reports that additional machinery has arrived at the plant, with installation and trial runs underway. This expansion aims to increase the compounding capacity for all grades of conveyor belts, including steel cord belts, which is expected to enhance the company's ability to execute orders in a timely manner.

Financial Position

As of September 30, 2025, the company's financial position shows:

The company maintains a healthy current ratio of 2.52 and a conservative debt-equity ratio of 0.19, indicating a strong balance sheet and financial stability.

Future Outlook

Management expects the ongoing capacity expansion to be completed within the current financial year. This expansion is anticipated to strengthen Somi Conveyor Beltings' market position and potentially drive growth in the coming quarters.

While the company faces challenges in terms of reduced revenue, its focus on profitability and strategic expansion plans suggest a cautious approach to future growth in the industrial conveyor belt sector.

Somi Conveyor Beltings Limited , a manufacturer of heavy-duty material nylon conveyor belts, has announced a significant order win from Steel Authority of India Limited (SAIL). The company has secured an order worth Rs 3.04 crore for supplying various grades of conveyor belts.

Order Details

The order comprises three different types of conveyor belts:

Delivery and Specifications

Somi Conveyor Beltings is expected to deliver the order by February 3, 2026. The conveyor belts will be manufactured using virgin raw materials and will undergo rigorous quality checks:

• HR-120 Grade: 800 mm width, 15 mm thickness, with 5 mm top rubber and 2 mm bottom rubber thickness.
• M24 Grade (1000 mm): 1000 mm width, 15 mm thickness, with 6 mm top rubber and 3 mm bottom rubber thickness.
• M24 Grade (1200 mm): 1200 mm width, 18 mm thickness, with 6 mm top rubber and 3 mm bottom rubber thickness.

Quality Assurance and Inspection

The company has agreed to a pre-dispatch inspection by third-party agencies such as RITES, Lloyds, IRS, Bureau Veritas, SGS, or Inspectorate Griffith. The inspection will be conducted as per SAIL-DSP's Quality Assurance Plan (QAP). Somi Conveyor Beltings will bear the cost of this third-party inspection.

Guarantee and Defect Liability

Somi Conveyor Beltings has provided a guarantee for the proper quality of material and sound workmanship. This guarantee is valid for 18 months from the date of dispatch or 12 months from the date of use, whichever is earlier. In case of any manufacturing defects or failures within the guarantee period, the company is liable to replace the defective supply free of cost within 90 days of notification.

Impact and Outlook

This order from SAIL, a major public sector undertaking, strengthens Somi Conveyor Beltings' position in the industrial conveyor belt market. The company's ability to secure orders from prestigious clients like SAIL may be seen as a testament to the quality of its products and its manufacturing capabilities.

The successful execution of this order could potentially lead to more business opportunities with SAIL and other steel manufacturers, contributing to the company's growth in the future. However, investors should note that the company's performance will depend on various factors, including raw material costs, operational efficiency, and overall market conditions in the steel and mining sectors.