Somi Conveyor Beltings Limited has delivered impressive financial performance for the third quarter ended December 31, 2025, demonstrating strong operational efficiency and market demand for its industrial conveyor belt products. The company's board of directors approved the unaudited financial results at a meeting held on February 7, 2026.

Strong Quarterly Performance

The company's Q3FY26 results showcase significant growth across key financial metrics. Revenue from operations reached ₹3,748.44 lakhs, marking a substantial increase from the previous quarter and year-ago period.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company maintained steady revenue growth while facing some pressure on profitability compared to the previous year.

Operational Efficiency and Cost Management

The company's cost structure showed mixed trends during Q3FY26. Cost of materials consumed increased to ₹2,301.26 lakhs from ₹1,914.55 lakhs in Q3FY25, reflecting higher raw material costs. However, the company managed to control other operational expenses effectively, with employee benefit expenses rising modestly to ₹126.76 lakhs from ₹108.01 lakhs year-on-year.

Key Financial Ratios and Metrics

The company's financial health indicators demonstrate strong fundamentals as of December 31, 2025:

Business Developments and Expansion

Somi Conveyor Beltings is progressing with its production expansion in the mixing line segment. The company has installed additional machinery at its plant and completed initial testing, dry runs, and calibration processes. The commissioning and final trial runs are currently underway, with production expected to commence within the current financial year. This expansion will increase compounding capacity for all grades of conveyor belts, including steel cord belts, enabling timely order execution and improved operational scale.

Regulatory and Compliance Updates

The company recognized an additional gratuity liability of ₹13.92 lakhs following the Government of India's notification of Labour Codes provisions on November 21, 2025. These codes consolidate twenty-nine existing labour laws into a unified framework, introducing changes including uniform wage definitions and enhanced leave benefits. The company will evaluate further impact once Central and State Rules are fully notified.

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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.