Storage Technologies & Automation Reports Loss in H1FY26 Despite Revenue Growth

Storage Technologies & Automation Limited (STAL), a company specializing in racking, shelving, and automation solutions, has reported mixed financial results for the first half of fiscal year 2026 (H1FY26). Despite a year-on-year revenue growth, the company faced challenges that led to a net loss.

Revenue Growth Amidst Challenges

STAL reported a 7.9% year-on-year increase in revenue from operations, reaching ₹470.53 crore in H1FY26 compared to ₹436.15 crore in H1FY25. However, on a sequential basis, revenue decreased by 7.4% from ₹508.01 crore in H2FY25. The company attributed this decline to elongated execution timelines for certain projects.

Financial Performance Overview

Here's a breakdown of STAL's key financial metrics for H1FY26:

Metric	H1FY26	H1FY25	YoY Change
Revenue	₹470.53	₹436.15	+7.9%
EBITDA	₹3.25	₹40.36	-91.9%
EBITDA Margin	0.7%	9.3%	-860 bps
Net Profit/(Loss)	(₹15.50)	₹12.45	-224.5%
PAT Margin	-3.3%	2.9%	-620 bps

Profitability Challenges

Despite the revenue growth, STAL faced significant profitability challenges:

EBITDA Decline: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell sharply to ₹3.25 crore, down from ₹40.36 crore in H1FY25. This resulted in an EBITDA margin contraction from 9.3% to 0.7%.
Net Loss: The company reported a net loss of ₹15.50 crore in H1FY26, compared to a profit of ₹12.45 crore in the same period last year.
Margin Pressure: The sharp decline in profitability was attributed to higher on-site manpower costs, increased rentals, and execution-related overheads on delayed projects.

Management Outlook

Despite the current challenges, STAL's management remains optimistic about the future:

Revenue Target: The company has set a revenue target of ₹1,200 crore for FY26.
Margin Recovery: Management expects margins to improve in the second half of FY26 as revenue scales up and cost overhangs ease.
Seasonal Strength: The company anticipates better performance in H2, which is historically a stronger period for the business.

Investor Presentation

In a voluntary disclosure to enhance transparency, STAL has prepared an investor presentation providing an overview of its operational and financial performance. This move demonstrates the company's commitment to keeping its shareholders and stakeholders well-informed.

As STAL navigates through these challenging times, investors and market watchers will be keenly observing how the company executes its strategies to return to profitability and achieve its revenue target for FY26.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-7.02%	-8.42%	-9.53%	-36.15%	-49.55%	-56.32%

Storage Technologies & Automation Limited (STAL) has recently received a notice from the Karnataka State Pollution Control Board (KSPCB), prompting the company to take swift action to ensure compliance with environmental regulations. This development comes as part of the board's efforts to enforce pollution control measures across industries in the state.

Key Points of the Notice

Regulatory Requirement: STAL has been directed to obtain consent under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981.
Reason for Notice: The company's activities now fall under the consent mechanism following a re-categorization of industries by the Pollution Control Board.
Company's Response: STAL has already applied for the requisite consent and is actively taking steps to ensure compliance.

Impact Assessment

According to the company's management, the notice is not expected to have a material financial or operational impact on STAL. This assessment suggests that the company is well-prepared to address the regulatory requirements without significant disruption to its business operations.

Compliance Timeline

Event	Date
Notice Receipt Date	October 29, 2025
LODR Disclosure Date	October 30, 2025
Consent Application	Already Submitted

Transparency Measures

In line with good governance practices, STAL has made a voluntary disclosure of this regulatory notice to its stakeholders. The company has filed an intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparency.

Management Statement

Mohammad Arif Abdul Gaffar Dor, Managing Director of STAL, signed off on the regulatory filing, affirming the company's proactive approach to addressing the KSPCB's requirements. The management's swift response and open communication underscore their dedication to environmental compliance and shareholder interests.

This development highlights the ongoing evolution of environmental regulations in India and the importance for companies to stay agile in their compliance efforts. As industries face increasing scrutiny regarding their environmental impact, proactive measures like those taken by Storage Technologies & Automation may become more common across the corporate landscape.