ITL Industries up 12.04% on Q2 FY27 revenue and PAT growth, cleaner standalone structure

According to the standalone results on page 3 of the filing, ITL Industries’ income from operations for the quarter ended 30 September 2026 rose to Rs 69.11 cr, compared with Rs 48.61 cr in the quarter ended 30 September 2025.

Total income from operating activities for the latest quarter was also Rs 69.11 cr, as there was no other operating income reported. Including other income of Rs 0.7679 cr, total income came in at Rs 69.88 cr.

On the profitability side, profit from operations before exceptional items (and before tax) increased to Rs 4.83 cr in the September 2026 quarter, versus Rs 3.31 cr in the September 2025 quarter. Profit before tax is the same figure, as the company reported no exceptional items.

After tax, standalone net profit for the quarter (profit for the period from continuing operations) improved to Rs 3.48 cr, up from Rs 2.53 cr in the year‑ago quarter. The filing also shows basic and diluted earnings per share for continuing operations at Rs 10.87 for the quarter, compared with Rs 7.89 in the corresponding quarter of the previous year.

For the half‑year ended 30 September 2026, income from operations stood at Rs 121.30 cr, versus Rs 90.02 cr in the half‑year ended 30 September 2025. Half‑year profit before tax was Rs 8.71 cr, compared with Rs 6.35 cr a year earlier, while standalone net profit for the half‑year was Rs 6.48 cr, up from Rs 4.82 cr.

The filing does not break out margin percentages, so investors are focusing on the absolute growth in revenue and profit.

Page 4 of the filing provides segment‑wise revenue and results, which help explain why the market reacted positively.

For the quarter ended 30 September 2026:

• Machine Manufacturing segment revenue was Rs 51.31 cr, compared with Rs 36.48 cr in the quarter ended 30 September 2025.
• Trading Activities revenue was Rs 24.46 cr, up from Rs 16.40 cr in the year‑ago quarter.

Total segment revenue before eliminating inter‑segment sales was Rs 75.77 cr, versus Rs 52.88 cr a year earlier. After deducting inter‑segment revenue of Rs 5.90 cr, net sales/income from operations matched the main statement at Rs 69.88 cr.

On segment profitability before interest and tax:

• Machine manufacturing profit was Rs 3.41 cr, compared with Rs 3.05 cr in the September 2025 quarter.
• Trading activities profit was Rs 1.84 cr, up from Rs 0.7962 cr in the year‑ago quarter.

Combined segment profit before interest was Rs 5.25 cr, versus Rs 3.84 cr a year earlier. After finance cost of Rs 0.4205 cr, profit before tax for the quarter was Rs 4.83 cr.

This broad‑based improvement across both manufacturing and trading appears to be a key factor behind the stock’s move, as it suggests the growth is not dependent on a single line of business.

The statement of cash flows on page 5 shows that, for the half‑year ended 30 September 2026, ITL Industries reported net cash used in operating activities of Rs -4.70 cr. This compares with Rs -1.47 cr in the half‑year ended 30 September 2025.

Despite the negative operating cash flow, net cash from investing activities was Rs 4.27 cr, and net cash from financing activities was Rs 3.48 cr, leading to a net increase in cash and cash equivalents of Rs 3.06 cr over the half‑year. Cash and cash equivalents at the end of the period stood at Rs 3.22 cr, up from Rs 0.2148 cr at the end of the corresponding half‑year in 2025.

The balance sheet on page 6 shows total assets of Rs 167.21 cr as at 30 September 2026, compared with Rs 153.19 cr as at 31 March 2026. Current assets were Rs 136.90 cr, while non‑current assets were Rs 30.31 cr.

Total equity (equity share capital plus other equity) stood at Rs 94.89 cr at the half‑year end, up from Rs 88.57 cr at 31 March 2026. Current liabilities were Rs 66.28 cr, and non‑current liabilities were Rs 6.03 cr.

The filing does not provide leverage ratios or return metrics, but the increase in equity and assets alongside higher profits helps frame the market’s positive response.

Note 4 on page 4 of the results explains that the Board, at its meeting on 17 March 2026, approved the disinvestment of the company’s entire shareholding in M.M. Metals Private Limited, a non‑material subsidiary. The company disposed of its entire holding of 30,430 equity shares, representing 52.55% of the issued, subscribed and paid‑up equity share capital of M.M. Metals Private Limited.

As a result, M.M. Metals Private Limited ceased to be a subsidiary with effect from 20 March 2026. The note clarifies that consolidated results for the quarter and half‑year ended 30 September 2026 are therefore not presented.

This simplification to a standalone‑only reporting structure may also be contributing to investor comfort, as the core business performance is now easier to track.

Putting the pieces together from the filing and the live market read:

• Revenue from operations for the September 2026 quarter increased meaningfully year‑on‑year to Rs 69.11 cr.
• Profit before tax rose to Rs 4.83 cr, and net profit from continuing operations climbed to Rs 3.48 cr, with EPS at Rs 10.87.
• Both machine manufacturing and trading segments showed higher revenue and segment profit compared with the year‑ago quarter.
• The company has a larger equity base of Rs 94.89 cr and higher total assets of Rs 167.21 cr, while still posting only modest absolute profits, leaving scope for re‑rating if growth sustains.
• The business is now reported purely on a standalone basis after the exit from M.M. Metals Private Limited, reducing structural complexity.

The market commentary cited alongside the filing points to the strong year‑on‑year revenue and profit growth, along with improved operating performance, as the main drivers of the roughly 12.0% move. While operating cash flow for the half‑year was negative, investors appear to be prioritising the visible growth in the core segments and the cleaner corporate structure, which together help explain why ITL Industries’ shares were last seen changing hands at Rs 394.