Ludlow Jute Q2 Results: Net Profit Surges 63.8% YoY to ₹11.3 Crore on Robust Revenue

Key numbers

Market Cap	₹312.42 CrForest Materials
PE Ratio	17.26Sector PE 39.52
RSI	46.06Neutral Zone
1Yr Price Change	-25.58%Annual Return

Key highlights

• Net profit reached ₹11.3 crore, growing 76.6% sequentially from ₹6.4 crore in Q1-27
• Revenue from operations scaled to ₹210 crore compared to ₹135 crore in the same period last year
• Operating margins expanded to 7.2% in Q2-27 from 4.5% in the preceding quarter
• Top-line figures include a ₹3.51 crore benefit from retrospective price revisions for jute bags
• The company successfully completed the acquisition of Seva by Tara Foundation on July 14, 2026

Operational Revenue Gains and Price Revision Impact

Ludlow Jute & Specialities witnessed a significant surge in its operational scale, with revenue from operations reaching ₹210 crore in Q2-27. This 55.5% year-on-year growth was bolstered by an improvement in operating margins, which climbed to 7.2%. A key contributor to this quarter's performance was the inclusion of ₹3.51 crore towards price revisions for jute bags sold in previous years.

These revisions followed Gazette Notifications issued by the Office of the Jute Commissioner. Despite the top-line growth, the company maintained cost discipline, allowing profit before tax to rise to ₹15.1 crore from ₹9.2 crore in the corresponding quarter of the previous year.

Transition to Consolidated Reporting and Subsidiary Performance

• Acquired 100% shareholding in Seva by Tara Foundation (Section 8 Company) on July 14, 2026
• The current quarter represents the first consolidated financial statement prepared by the company
• The new subsidiary reported a nominal net loss of ₹2.38 lakhs for the September quarter
• Management characterized the subsidiary's interim financial impact as non-material to the Group
• Corporate structure maintains a focus on the core segment of manufacturing and sale of jute goods

Historical Context and Capex Status

The current results show a sharp recovery from lower profitability levels seen earlier in the 2026 fiscal year, where Q4 FY26 net profit stood at ₹1.38 crore. This rebound comes as the company manages its order book, which was previously reported at ₹35.63 crore to be executed in the near term. While operational performance remains strong, the company's mill modernization project has remained on hold since August 2024 according to credit disclosures.

With the stock currently trading at a P/E of 17.26 against a sector average of 39.52, the market is pricing the company conservatively despite the 252.82% annual net profit growth reported in FY26.

What to watch next

• Execution progress of the near-term order book valued at ₹35.63 crore
• Updates on the strategic mill modernization capex project currently on hold
• Further integration and potential operational scaling of the Seva by Tara Foundation subsidiary

Ludlow Jute & Specialities · financial snapshot

Share price	₹290
Market capitalisation	₹312.42 Cr
Revenue (annual)	₹531.85 Cr
Net profit (annual)	₹16.16 Cr
Revenue (latest quarter)	₹189.47 Cr+27.89% vs previous quarter
Net profit (latest quarter)	₹6.43 Cr+365.94% vs previous quarter
P/E (TTM)	17.26×Sector 39.52×
Promoter holding	67.21%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.