Stovec Inds. Q2 FY26 Results (BSE: 504959)

12 Aug 2026 · Analysis by Alpha Inflection

Signal: Revenue declined

The read

The near-term inflection is sequential recovery and gross-margin expansion—revenue rose 13.0% QoQ and gross margin improved about 200bps QoQ—but the underlying trajectory remains weak because Q2 revenue was 7.2% below last year, H1 revenue fell 6.0% and H1 PAT fell 52.3%.

P&L walk

Revenue declined 7.2% YoY but recovered 13.0% QoQ; gross margin expanded to 48.7% from 43.4% YoY, yet PAT declined 17.1% YoY to ₹24.52 million as the lower revenue base and operating costs outweighed the gross-margin benefit.

Segments

Textile Machinery and Consumables drove the group economics with ₹503.33 million of revenue and ₹56.72 million of segment result, while Graphics Consumables contributed ₹24.32 million of revenue and ₹10.44 million of result; the textile segment's revenue fell 7.0% YoY and result fell 5.5% YoY.

Key positives

• Gross margin expanded approximately 530bps YoY to 48.7% and 200bps QoQ, despite raw material consumed increasing 2.9% YoY to ₹251.18 million.
• Revenue recovered 13.0% QoQ to ₹527.65 million, and PAT rose 47.4% QoQ to ₹24.52 million after the weak March quarter.
• H1 operating cash flow turned positive at ₹92.35 million versus ₹(122.67) million a year earlier, supported by cash generated from operations of ₹9.67 million versus ₹(13.01) million.

Key concerns

• Revenue declined 7.2% YoY to ₹527.65 million, extending the weak multi-year trajectory reflected in the filing context, while H1 revenue was down 6.0% YoY.
• PAT declined 17.1% YoY to ₹24.52 million and H1 PAT declined 52.3% YoY to ₹41.15 million, indicating that gross-margin improvement has not yet translated into annual earnings recovery.
• The dominant Textile Machinery and Consumables segment reported 7.0% YoY revenue decline and 5.5% YoY segment-result decline.

View original filing

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