Sampat Aluminium Limited reported a net profit of INR 47.4 million (USD 502,121) for the half year ended September 30, 2026, supported by a non-recurring gain of INR 57.1 million (USD 604,875) from the sale of old plant and machinery. The company’s revenue from operations increased to INR 1,250.9 million (USD 13.25 million) from INR 811.4 million (USD 8.60 million) in the corresponding period last year. However, its profit before exceptional items and tax declined significantly, highlighting the impact of the machinery sale on reported earnings.
The company’s profit before exceptional items and tax stood at INR 5.887 million (USD 62,363), compared with INR 62.5 million (USD 662,079) in the first half of the previous financial year. After including the exceptional gain, profit before tax reached INR 63 million, while total tax expenses amounted to INR 15.6 million.
Machinery sale provides significant boost to earnings
The INR 57.1 million gain from the sale of old plant and machinery was classified as an exceptional, non-recurring item in the company’s financial results. It exceeded the profit generated before exceptional items and tax during the reporting period, making it the principal contributor to the reported first-half earnings.
In comparison, Sampat Aluminium reported a net profit of INR 47.3 million in the corresponding period of the previous financial year, when it did not record a similar exceptional gain. Basic and diluted earnings per share for the latest half year stood at INR 5.59, compared with INR 6.59 a year earlier.
Higher revenue accompanied by weaker pre-exceptional profitability
Sampat Aluminium’s revenue from operations increased to INR 1,250.9 million from INR 811.4 million in the first half of the previous financial year. However, the increase in sales was accompanied by higher material consumption, which rose to INR 1,202.7 million from INR 707.2 million.
This absorbed much of the additional revenue and contributed to the decline in profit before exceptional items and tax. Direct expenses also increased, while finance costs declined during the reporting period.
The figures indicate that stronger revenue did not translate into higher pre-exceptional profitability. The machinery-sale gain therefore played a crucial role in supporting the company’s reported net profit.