Pentagon Rubber Limited (PENTAGON)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Pentagon Rubber's revenue was ₹24.1 Cr (-3.6% year on year, -9.8% on the previous half-year), and net profit ₹1.2 Cr (-31.2% year on year); the operating margin was 11.9%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹24.1 | -3.6% | -9.8% |
| Operating profit | ₹2.9 | +28.3% | +44.4% |
| Net profit | ₹1.2 | -31.2% | +92.1% |
| EPS (₹) | 1.57 | -31.1% | +91.5% |
| Operating margin | 11.9% | — | — |
📢 Recent Corporate Announcements
Pentagon Rubber Limited has announced that its 22nd Annual General Meeting (AGM) will be held on Monday, September 28, 2026. The company has fixed September 21, 2026, as the cut-off date for determining shareholder voting eligibility. The Register of Members and Share Transfer Books will remain closed from September 22, 2026, to September 28, 2026.
- 22nd Annual General Meeting scheduled for September 28, 2026, at 09:15 AM
- Cut-off date for e-voting eligibility set for September 21, 2026
- Book closure period runs from September 22, 2026, to September 28, 2026 (both days inclusive)
- Board meeting to fix dates was held on September 03, 2026
Pentagon Rubber Limited has informed the exchange regarding the schedule of its 22nd Annual General Meeting (AGM). The meeting is set to take place on Monday, September 28, 2026, at 09:15 AM IST. It will be held physically at Lords Eco Inn, Ambala-Chandigarh Highway, Dera Bassi, Punjab, in compliance with SEBI LODR regulations.
- 22nd Annual General Meeting scheduled for Monday, September 28, 2026
- Meeting time confirmed for 09:15 AM IST
- Physical venue fixed at Lords Eco Inn, Dera Bassi, Dist. S.A.S. Nagar, Punjab 140507
Financial Performance
Revenue Growth by Segment
Overall revenue from operations grew 10.06% YoY, reaching INR 2,674.37 Lakhs for H1 FY26 compared to INR 2,429.81 Lakhs in H1 FY25. Segment-specific growth was not disclosed in the available documents.
Profitability Margins
Net Profit Margin declined from 3.81% in H1 FY25 to 2.35% in H1 FY26. Profit Before Tax (PBT) margin stood at 5.57% (INR 148.86 Lakhs) for H1 FY26, compared to 5.28% (INR 128.29 Lakhs) in H1 FY25, showing a slight improvement in core operational profitability before tax impacts.
EBITDA Margin
EBITDA margin is approximately 8.54% for H1 FY26, calculated from a PBT of INR 148.86 Lakhs plus Finance Costs of INR 54.40 Lakhs and Depreciation of INR 25.17 Lakhs. This represents a steady operational performance despite rising input costs.
Capital Expenditure
Tangible assets increased by INR 59.24 Lakhs during the half-year, growing from INR 1,097.55 Lakhs as of March 31, 2025, to INR 1,156.79 Lakhs as of September 30, 2025, indicating ongoing investment in property, plant, and equipment.
Credit Rating & Borrowing
Total borrowings stood at INR 2,876.80 Lakhs as of September 30, 2025. This includes Long-Term Borrowings of INR 1,295.69 Lakhs and Short-Term Borrowings of INR 1,581.11 Lakhs. Specific credit ratings and interest rate percentages were not disclosed.
Operational Drivers
Raw Materials
Not disclosed in available documents, though the company operates in the rubber manufacturing sector.
Capacity Expansion
Current installed capacity and specific expansion timelines were not disclosed in the available financial statements.
Raw Material Costs
Cost of Material Consumed was INR 1,876.05 Lakhs for H1 FY26, representing 70.15% of total revenue. This cost increased by 7.52% YoY from INR 1,744.76 Lakhs, indicating that raw material price fluctuations significantly impact the company's bottom line.
Strategic Growth
Growth Strategy
The company is leveraging its status as a listed entity on the NSE EMERGE SME platform (listed July 7, 2023) to access capital markets for scaling operations. The 10.06% YoY revenue growth indicates a strategy focused on increasing market penetration in the industrial rubber products sector.
Products & Services
Industrial rubber products, including conveyor belts and related rubber-based manufacturing components.
External Factors
Industry Trends
The industrial rubber sector is evolving with increased demand for high-durability conveyor systems in mining and infrastructure. As an SME-listed company, Pentagon is positioned to capture niche growth but faces competition from larger, more integrated players.
Competitive Landscape
The company operates in a fragmented market with competition from both large-scale organized manufacturers and smaller unorganized local players.
Competitive Moat
The company's moat is derived from its specialized manufacturing capabilities in the rubber sector and its early-mover advantage as a listed SME, providing better transparency and capital access than unorganized competitors.
Macro Economic Sensitivity
The company is sensitive to industrial production indices and infrastructure spending, which drive demand for rubber conveyor belts and industrial components.
Regulatory & Governance
Industry Regulations
The company is subject to industrial manufacturing standards and pollution control norms applicable to rubber processing units.
Taxation Policy Impact
The effective tax rate for H1 FY26 was 57.7%, a significant increase from 27.8% in H1 FY25, which severely constrained net profit growth.
Legal Contingencies
No specific pending court cases or case values were disclosed in the provided limited review financial notes.
Risk Analysis
Key Uncertainties
High tax volatility and a 42.15% increase in short-term borrowings (from INR 1,112.26 Lakhs to INR 1,581.11 Lakhs) present significant financial risks.
Credit & Counterparty Risk
Trade receivables increased 18.1% to INR 1,845.41 Lakhs, representing 69% of H1 revenue, indicating high credit exposure to customers and potential collection risks.
