Elgi Rubber Company's Q2 FY 2025-26 Quarterly Results

Result Summary

• Elgi Rubber Company Ltd reported a 2.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 1.0%.
• Its expenses for the quarter were up by 9.1% QoQ and 0.9% YoY.
• The net profit increased 298.0% QoQ and increased 45.5% YoY.
• The earnings per share (EPS) of Elgi Rubber Company Ltd declined at 1.2 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Elgi Rubber Company Ltd is a company engaged in the manufacturing and distribution of products primarily used in the rubber industry. The company is known for its comprehensive range of products, including rubber processing machinery, retreading machinery, and other related equipment. Elgi Rubber serves various markets that include tire retreading companies and rubber product manufacturers. As of the latest available information, there are no specific recent major developments noted for Elgi Rubber Company Ltd; however, the company continually focuses on expanding its product offerings and improving operational efficiency.

Revenue

In Q2FY26, Elgi Rubber Company Ltd reported a total income of ₹96.99 crores, marking a marginal increase of 2.2% quarter-over-quarter (QoQ) from ₹94.86 crores in Q1FY26. However, when compared year-over-year (YoY) to Q2FY25, the total income showed a slight decline of 1.0% from ₹97.96 crores. This indicates a relatively stable revenue stream with minor fluctuations over the observed periods. The modest QoQ growth suggests that the company has maintained its revenue levels with small improvements over the preceding quarter, while the YoY comparison reflects a slight decrease in income.

Profitability

The financial data reveals a challenging quarter in terms of profitability for Elgi Rubber Company Ltd. In Q2FY26, the company experienced a loss before tax of ₹5.94 crores, a significant decline from the marginal profit before tax of ₹0.05 crores in Q1FY26. This represents a substantial QoQ decrease in profitability. Compared to the previous year, Q2FY25, where the company reported a loss before tax of ₹4.54 crores, the loss has widened by 30.8% YoY. The profit after tax in Q2FY26 was recorded at a loss of ₹6.01 crores, compared to a loss of ₹1.51 crores in Q1FY26, reflecting a QoQ increase in losses by 298.0%. Similarly, the YoY comparison shows a 45.5% increase in post-tax losses from ₹4.13 crores in Q2FY25. Earnings per share (EPS) also declined from -0.30 in Q1FY26 to -1.20 in Q2FY26, and from -0.82 in Q2FY25, showing a significant deterioration in EPS both QoQ and YoY.

Operating Metrics

Elgi Rubber Company Ltd's total expenses in Q2FY26 were ₹103.46 crores, reflecting a 9.1% increase QoQ from ₹94.81 crores in Q1FY26. When compared to Q2FY25, total expenses increased by 0.9% from ₹102.50 crores. The rise in total expenses both QoQ and YoY is a notable aspect of the company's operating metrics. The tax component also showed a decrease from ₹1.57 crores in Q1FY26 to a marginal ₹0.07 crores in Q2FY26, and a contrast from a tax credit of -₹0.41 crores in Q2FY25. This change in the tax expense significantly impacts the profitability metrics of the company. The increased expenses and fluctuating tax expenses reflect the operational challenges faced by the company during this period.