India Nippon Electricals Ltd reported a 27.5% year-on-year increase in revenue from operations to Rs 347.48 crore for the quarter ended September 30, 2026 (Q2 FY2027), while net profit declined 6% to Rs 21.81 crore from Rs 23.20 crore. Material costs rose 32.1% to Rs 250.51 crore, faster than revenue.
PBT fell 11.1% to Rs 28.53 crore from Rs 32.08 crore. Basic earnings per share were Rs 9.64, against Rs 10.26. Sequentially, revenue rose 14.1% from Rs 304.48 crore in the June quarter, while net profit fell 19.3% from Rs 27.03 crore.
Material costs, which combine cost of materials consumed, purchase of stock-in-trade and changes in inventories, were 72.1% of revenue, against 69.6% a year earlier and 69.9% in Q1. They rose 17.7% from Rs 212.88 crore in the June quarter.
Revenue less material costs rose 17.0% to Rs 96.97 crore from Rs 82.89 crore, or 27.9% of revenue against 30.4%. The Rs 60.84 crore increase in material costs accounted for 84% of the Rs 72.44 crore rise in total expenses, which stood at Rs 319.82 crore, up 29.3%.
Revenue exceeded total expenses by Rs 27.66 crore, or 8.0% of revenue, against Rs 25.18 crore, or 9.2%, a year earlier.
Other income fell to Rs 87 lakh from Rs 6.90 crore a year earlier and Rs 8.10 crore in Q1. Tax expense fell 24.3% to Rs 6.72 crore from Rs 8.88 crore, which kept the decline in net profit smaller than that in profit before tax.
Inventories stood at Rs 114.05 crore on September 30, up 25.5% from Rs 90.91 crore on March 31, 2026. Trade receivables rose 11.8% to Rs 230.81 crore from Rs 206.46 crore.
Trade payables fell 24.2% to Rs 146.73 crore from Rs 193.61 crore. Cash and cash equivalents were Rs 3.27 crore, against Rs 5.50 crore at March-end.
The balance sheet lists no borrowings other than lease liabilities. Current and non-current investments together stood at Rs 552.89 crore, against Rs 531.53 crore at March-end.
For the six months to September 30, purchases of investments were Rs 686.52 crore and sales were Rs 668.34 crore. Capital expenditure, including capital work-in-progress, was Rs 23.23 crore, against depreciation of Rs 10.66 crore. Capital work-in-progress rose to Rs 17.07 crore from Rs 6.82 crore at March-end. The filing does not specify the projects.
H1 FY2027 revenue rose 31.1% to Rs 651.96 crore, and net profit rose 5.0% to Rs 48.84 crore.
The company operates in one segment, electrical and electronic products for two- and three-wheelers and engines. It has had no subsidiary since the dissolution of PT Automotive Systems Indonesia Ltd on June 25, 2025.