SP Refractories Reports Robust FY26 Results; Net Profit Surges to Rs. 352.89 Lacs

SP Refractories Limited, a Nagpur-based refractory cement manufacturer, announced its audited standalone financial results for the half year and year ended March 31, 2026, at a Board of Directors meeting held on May 14, 2026. The results, approved in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were audited by Sanjay Chindaliya & Co., Chartered Accountants, with an unmodified and unqualified audit opinion.

Financial Performance Overview

SP Refractories delivered a strong improvement in profitability for the full year ended March 31, 2026, despite a moderation in revenue. The company's net profit for the year rose to Rs. 352.89 lacs from Rs. 209.06 lacs in the previous year. Profit before tax also grew substantially to Rs. 473.90 lacs from Rs. 279.33 lacs. Revenue from operations stood at Rs. 2,815.16 lacs for FY26 compared to Rs. 3,025.41 lacs in FY25, while other income increased to Rs. 2.27 lacs from Rs. 0.60 lacs, bringing total income to Rs. 2,817.43 lacs against Rs. 3,026.01 lacs in the prior year.

The following table presents the key income statement metrics across reporting periods (Rs. in Lacs):

Metric: H2 FY26 (31 Mar'26) Audited H1 FY26 (30 Sept'25) Unaudited H2 FY25 (31 Mar'25) Audited FY26 Audited FY25 Audited Revenue from Operations: 1,185.36 1,629.80 1,584.83 2,815.16 3,025.41 Other Income: 1.98 0.28 0.56 2.27 0.60 Total Income: 1,187.34 1,630.09 1,585.39 2,817.43 3,026.01 Total Expenses: 1,006.95 1,336.57 1,437.47 2,343.53 2,746.68 Profit Before Tax: 180.39 293.52 147.92 473.90 279.33 Net Profit: 133.24 219.64 111.88 352.89 209.06

Cost Structure and Expense Trends

A significant driver of the improved profitability was a notable reduction in total expenses, which declined to Rs. 2,343.53 lacs in FY26 from Rs. 2,746.68 lacs in FY25. Cost of materials consumed fell to Rs. 1,468.59 lacs from Rs. 1,855.95 lacs, while employee benefits expense moderated to Rs. 317.57 lacs from Rs. 335.56 lacs. Finance costs reduced sharply to Rs. 15.01 lacs from Rs. 34.40 lacs, reflecting a lower debt burden. Depreciation and amortisation expense was Rs. 41.91 lacs in FY26 versus Rs. 40.00 lacs in FY25, and other expenses rose marginally to Rs. 584.89 lacs from Rs. 564.39 lacs.

Earnings Per Share

The improvement in profitability translated into higher earnings per share for FY26. Both basic and diluted EPS (before and after extraordinary items) for the full year stood at Rs. 19.72 compared to Rs. 11.68 in FY25. For the second half of FY26, EPS was Rs. 7.45, up from Rs. 6.25 in the corresponding period of the previous year.

Balance Sheet and Cash Flow Highlights

The company's total assets as on March 31, 2026 stood at Rs. 1,877.48 lacs, compared to Rs. 1,888.05 lacs as on March 31, 2025. Shareholders' funds increased to Rs. 1,611.80 lacs from Rs. 1,258.91 lacs, driven by growth in reserves and surplus to Rs. 1,432.85 lacs from Rs. 1,079.96 lacs. Short-term borrowings declined significantly to Rs. 12.42 lacs from Rs. 326.95 lacs, reflecting improved liquidity. Net cash flow from operating activities for FY26 was Rs. 130.62 lacs, while net cash used in investing activities was Rs. (89.34) lacs and net cash used in financing activities was Rs. (41.13) lacs. Cash and cash equivalents at the end of the year stood at Rs. 0.73 lacs.

Key Financial Ratios

SP Refractories' financial ratios reflect a marked improvement across liquidity, leverage, and profitability metrics for FY26 compared to FY25.

Ratio: FY26 FY25 Debt Service Coverage Ratio (DSCR): 23.28 3.86 Interest Service Coverage Ratio: 32.58 9.12 Debt-Equity Ratio: 0.07 0.35 Current Ratio: 8.10 2.42 Operating Margin (%): 17.29 10.35 Net Profit Margin (%): 12.54 6.91 Total Debt To Total Assets: 0.06 0.24

IPO Proceeds Utilisation

The company disclosed the utilisation of net IPO proceeds amounting to Rs. 238.17 lacs, raised through an Initial Public Offer of 2,97,600 equity shares of Rs. 10 each at a price of Rs. 90 per share, aggregating to Rs. 267.84 lacs. As of March 31, 2026, the entire net proceeds have been fully utilised as per the prospectus.

Particular: As per Prospectus (Rs. Lacs) Utilised till 31.03.2026 (Rs. Lacs) Difference (Rs. Lacs) Funding Working Capital Requirement: 220.74 220.74 - General Corporate Purposes: 17.43 17.43 - Total: 238.17 238.17 -

The Board meeting commenced at 12:30 P.M. and concluded at 1:30 P.M. on May 14, 2026. The company noted that it operates in a single business segment — refractory cement — and accordingly, no segment reporting is required under AS 17. The auditor's report was confirmed to be unmodified and without any qualification.

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