Spectrum Foods Reports 29% Revenue Growth, 32% Profit Decline in Q1 FY2026

1 min read     Updated on 11 Aug 2025, 03:20 PM
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Overview

Spectrum Foods Limited reported mixed Q1 FY2026 results with total income rising 29% to Rs. 719.11 crore, driven by a 30% increase in salt manufacturing revenue. However, net profit declined 32% to Rs. 149.00 crore. Salt manufacturing segment profit fell 34% despite revenue growth. Power generation revenue increased 16%. The company returned to profitability after a loss in Q4 FY2025. EPS stood at Rs. 0.62. Board approved unaudited results on August 11, 2025, with clean limited review report from auditors.

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*this image is generated using AI for illustrative purposes only.

Spectrum Foods Limited, a salt manufacturing and power generation company, has released its financial results for the first quarter ended June 30, 2025. The company reported a mixed performance with significant revenue growth but a decline in profitability.

Revenue Growth

Spectrum Foods saw a substantial increase in its total income for Q1 FY2026. The company reported a total income of Rs. 719.11 crore, marking a 29% rise from Rs. 557.15 crore in the same period last year. This growth was primarily driven by the salt manufacturing and trading segment, which contributed Rs. 684.15 crore to the revenue, up 30% year-over-year.

Segment Performance

The company's financial results revealed the performance of its two main business segments:

  1. Salt Manufacturing/Trading: This segment, being the primary revenue generator, saw a 30% year-over-year increase in revenue to Rs. 684.15 crore. However, despite the revenue growth, the segment's profit declined by 34% to Rs. 133.94 crore.

  2. Power Generation: The power generation segment contributed Rs. 34.96 crore to the total revenue, showing a 16% increase compared to the previous year.

Profitability

Despite the strong revenue growth, Spectrum Foods experienced a significant decline in its net profit. The company's net profit for Q1 FY2026 stood at Rs. 149.00 crore, down 32% from Rs. 218.53 crore in the same quarter last year. This decline in profitability is notable, especially considering the substantial increase in revenue.

Earnings Per Share

The company reported earnings per share (EPS) of Rs. 0.62 for the quarter.

Recovery from Previous Quarter

It's worth noting that Spectrum Foods has returned to profitability after posting a loss of Rs. 421.46 crore in the previous quarter (Q4 FY2025). This turnaround indicates a positive shift in the company's financial performance.

Board Approval and Audit Review

The unaudited financial results were approved by the company's board of directors in a meeting held on August 11, 2025. The statutory auditors have provided a clean limited review report, confirming the accuracy of the financial statements.

Conclusion

While Spectrum Foods Limited has demonstrated strong revenue growth in Q1 FY2026, the decline in profitability raises questions about the company's cost management and operational efficiency. Investors and analysts will likely be watching closely to see how the company addresses these challenges in the coming quarters.

Note: All figures are in Indian Rupees (INR) and are reported on a standalone basis.

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