ALFA Finder
| P/E Ratio | 14.75Sector PE 31.84 |
|---|---|
| Market Cap | ₹754.68 CrSmall Cap |
| RSI | 51.51Neutral Zone |
| Promoter Holding | 61.51%No Pledge |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 282 | 246 | 214 |
| Other Income | 0.7 | 1.4 | 0.3 |
| Total Income | 283 | 247 | 214 |
| Profit Before Tax | 39.1 | 35.3 | 8.6 |
| Net Profit | 30.3 | 26.6 | 7.0 |
| Operating Margin | 13.8% | 14.3% | 4.0% |
| Net Profit QoQ | +13.9% | ||
| Net Profit YoY | +332.9% | ||
| Adj. Profit QoQ | +13.3% | ||
| Adj. Profit YoY | +362.7% | ||
Key highlights
- Net profit surged 332.9% YoY to reach ₹30.3 crore in Q2 FY27, up from ₹7.0 crore in the previous year
- Revenue from operations grew to ₹282 crore, reflecting a steady increase from ₹214 crore in Q2 FY26
- Operating margins expanded significantly to 13.8% for the quarter, compared to 4.0% in the year-ago period
- The company established two new subsidiaries: Precot Holdings Limited and Dubai-based Precot International (FZE)
- A restatement loss of ₹81.78 lakhs was recognized during the half-year period ended September 30, 2026
Profitability Expansion and Revenue Growth
Precot Limited reported a robust financial performance for the quarter ended September 30, 2026, as revenue from operations climbed to ₹282 crore, up from ₹214 crore in the same period last year. Net profit demonstrated significant momentum, surging 332.9% YoY to ₹30.3 crore and growing 13.9% sequentially from ₹26.6 crore in Q1 FY27. This growth was accompanied by a substantial improvement in operating margins, which stood at 13.8% for the quarter.
The company continues to operate within a single reportable segment, Textiles, with all current revenue generated through this core vertical.
Strategic Global Expansion and Subsidiary Incorporation
- Incorporated a wholly owned subsidiary, Precot Holdings Limited, on July 6, 2026
- Established a step-down subsidiary, Precot International (FZE), in Dubai on September 22, 2026
- The newly formed entities have a combined capital commitment of AED 2.5 Lakhs yet to be remitted
- Subsidiaries had no commercial operations during the reporting period, resulting in identical standalone and consolidated figures
- Consolidated total assets increased to ₹993 crore as of September 30, 2026, from ₹932 crore in March 2026
Asset Management and Market Valuation
The company's balance sheet reflects a growing asset base, with property, plant, and equipment valued at ₹513.75 crore on a consolidated basis. This aligns with Precot's ongoing operational strategy, which included the redeployment of 8,400 spindles to its Kanjikode facility in Kerala. Despite the sharp profit growth, the stock trades at a trailing price-to-earnings (P/E) ratio of 14.75, which remains considerably lower than the industry average of 31.84.
Promoter holding has remained stable at 61.51% with zero pledges, while the company maintains a high durability score of 85.
Management Observation on Consolidation
The company's subsidiaries do not have any business operations for the period. Accordingly, consolidation does not result in any adjustment, and hence the standalone and consolidated financial results remain the same for all periods presented.
| Date | Announcement | Amount |
|---|---|---|
| 13 Aug 2026 | Q1 FY27 Financial Results (Net Profit)Source: market data.com | ₹26.61 Cr |
| 16 May 2026 | Q4 FY26 Financial Results (Net Profit)Source: hdfcsec.com | ₹11.74 Cr |
| 10 Feb 2026 | Q3 FY26 Financial Results (Net Profit)Source: hdfcsec.com | ₹5.78 Cr |
| 14 Nov 2025 | Q2 FY26 Financial Results (Net Profit)Source: tickertape.in | ₹7.03 Cr |
| 13 Aug 2025 | Q1 FY26 Financial Results (Net Profit)Source: tickertape.in | ₹11.30 Cr |
| 23 May 2025 | Q4 FY25 Financial Results (Net Profit)Source: stockscans.in | ₹3.74 Cr |
What to watch next
- Commencement of commercial business operations at the Dubai-based subsidiary, Precot International (FZE)
- Progress toward the management goal of expanding technical textiles to 35% of overall revenue
- Realisation of operational efficiencies from the 8,400 spindles redeployed at the Kanjikode facility
“During the quarter, the company has incorporated a wholly owned subsidiary, Precot Holdings Limited, and a step-down subsidiary, Precot International (FZE), in Dubai.”
| Share price | ₹628.9 |
|---|---|
| Market capitalisation | ₹754.68 Cr |
| Revenue (annual) | ₹885.56 Cr |
| Net profit (annual) | ₹35.85 Cr |
| Revenue (latest quarter) | ₹245.73 Cr-4.63% vs previous quarter |
| Net profit (latest quarter) | ₹26.61 Cr+126.62% vs previous quarter |
| P/E (TTM) | 14.75×Sector 47.64× |
| Promoter holding | 61.51%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.
Exchange filing by Precot Limited announcing its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. Market figures from a third-party data provider.
