Rupa & Company's Q2 Saga: Growth Meets Margin Pressure in September Quarter

Updated: November 13, 2025 23:32

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Rupa & Company reported consolidated revenue from operations of Rs 320.2 crore for Q2 FY26, up 7.8% Y-o-Y. Despite increased sales, net profit dropped 21.4% to Rs 14.5 crore, pressured by higher raw material costs and reduced EBITDA margin. The company shows mixed signals with revenue growth yet squeezed profitability.

Rupa & Company posted its consolidated financial results for the September quarter (Q2 FY26) with notable revenue growth but shrinking profitability. The company’s revenue from operations reached Rs 320.2 crore, reflecting a 7.8% increase compared to the same quarter last year. On the flip side, net profit declined sharply by 21.4% to Rs 14.5 crore, impacted by rising input costs and lower operating margins.

Key financials reveal a 45.3% increase in raw material expenses, reaching Rs 152.9 crore, which significantly pressured gross and EBITDA margins. The gross profit margin slightly contracted to 27.4% from 28.8% a year ago, and the EBITDA margin declined from 9.6% to 7.0%. Operating profit (EBIT) also took a hit, slipping to Rs 24.3 crore from Rs 29.1 crore in Q2 FY25.

On a quarterly comparison (Q-o-Q), revenue surged 74.1%, driven by seasonality and market demand. However, profit before tax eased 7.5% year-on-year to Rs 19.7 crore. Employee costs and other expenses rose moderately but remained well-controlled relative to revenue growth.

For the half-year ended September 2025 (H1 FY26), total revenue stood at Rs 504.1 crore, slightly flat year-on-year, with profit after tax down 31.1%, underscoring the ongoing margin challenges.

Major Takeaways

- Consolidated revenue from operations increased 7.8% Y-o-Y to Rs 320.2 crore in Q2 FY26

- Net profit fell 21.4% to Rs 14.5 crore due to cost pressures, despite higher sales

- Raw material costs rose sharply by 45.3%, impacting margins significantly

- EBITDA margin contracted to 7.0%, down from 9.6% in Q2 FY25

- Quarter-on-quarter revenue jumped 74.1%, reflecting seasonal demand uptick

- Half-year revenue steady at Rs 504.1 crore, net profit down 31.1% for H1 FY26

- Operating profit (EBIT) down 16.5% Y-o-Y amid margin compression

Rupa & Company's quarterly results underline resilience in revenue growth amid challenging cost structures. The focus moving forward will be on managing raw material inflation and improving operational efficiencies to restore profitability.

Sources: NSE Circular, Rupa & Company official filings, verified market reports.

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