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SPL Industries Q3 Net Profit Rises to ₹2.38 Cr Aided by Tax Credits Despite 45% Revenue Slump
SPL Industries reported a challenging third quarter for FY 2025-26, with revenue from operations dropping 45.2% YoY to ₹14.65 crore. While Net Profit appears to have grown to ₹2.38 crore from ₹0.30 crore in the same period last year, this was primarily due to a significant deferred tax credit of ₹2.08 crore. Operationally, the company weakened as Profit Before Tax (PBT) fell 66.3% YoY to ₹0.48 crore. For the nine-month period, revenue is down over 57% compared to the previous year, indicating a sharp contraction in business scale.
Key Highlights
Revenue from operations declined 45.2% YoY to ₹1,465.09 lakhs from ₹2,673.92 lakhs.
Profit Before Tax (PBT) crashed 66.3% YoY to ₹48.60 lakhs compared to ₹144.40 lakhs in Q3 FY25.
Net Profit of ₹238.42 lakhs was bolstered by a deferred tax credit of ₹208.60 lakhs.
Nine-month (9M FY26) revenue stands at ₹4,626.15 lakhs, a massive drop from ₹10,870.22 lakhs in 9M FY25.
Trading of Garments segment revenue fell to ₹1,266.97 lakhs from ₹1,898.28 lakhs in the year-ago quarter.
💼 Action for Investors
Investors should look past the headline net profit growth as it is driven by non-cash tax adjustments rather than core business performance. The significant decline in revenue and operating profits suggests fundamental business stress, making the stock a 'Watch' with a negative bias.
SPL Industries to Purchase Land for ₹34.21 Crore
SPL Industries Limited has announced an agreement to purchase land in Village Prithla, Haryana, for ₹34,21,25,000 (exclusive of stamp duty and registration fees). The land, measuring 59 Kanal 10 Marle, was initially intended to be purchased by Elkay Overseas India, a related party. SPL Industries will reimburse Elkay Overseas India ₹3,42,12,501 for the advance amount already paid to the sellers. This acquisition is intended for business expansion.
Key Highlights
Land purchase agreement for ₹34,21,25,000
Land area: 59 Kanal 10 Marle in Village Prithla, Haryana
Reimbursement of ₹3,42,12,501 to Elkay Overseas India
Elkay Overseas India is a related party (Promoter Group)
💼 Action for Investors
Investors should monitor the progress of this land acquisition and its impact on SPL Industries' future expansion plans. Keep an eye on related party transactions and ensure they are conducted at arm's length.