Supreme Engineering Q2 FY26 results: net loss narrows to ₹0.65 crore, revenue up 31.5%

How did Supreme Engineering perform in Q2 FY26?

Supreme Engineering reported standalone revenue of ₹5.14 crore for Q2 FY26, up ₹1.23 crore or 31.5% from ₹3.91 crore in Q2 FY25. Total income was ₹5.36 crore, up ₹0.95 crore or 21.5%, while total expenses rose ₹0.80 crore or 14.8% to ₹6.22 crore.

The company reported an EBITDA loss of ₹0.42 crore in Q2 FY26, compared with an EBITDA loss of ₹0.76 crore in Q2 FY25. EBITDA margin improved by 11.4 percentage points to -8.1%. Profit before tax was a loss of ₹0.86 crore, against a loss of ₹1.90 crore a year earlier, while the net loss narrowed to ₹0.65 crore from ₹1.83 crore and EPS was -₹0.52 against -₹0.92.

Against Q1 FY26, revenue fell ₹3.26 crore or 38.8% to ₹5.14 crore. EBITDA moved from ₹0.57 crore to a loss of ₹0.42 crore, PBT moved from ₹0.07 crore to a loss of ₹0.86 crore, and profit after tax moved from ₹0.07 crore to a net loss of ₹0.65 crore. Basic EPS fell from ₹0.00 to -₹0.52, while EBITDA margin declined by 14.9 percentage points to -8.1%. The figures are standalone; no consolidated figures were provided.

What changed in Supreme Engineering's costs and profit?

Total expenses increased by ₹0.80 crore, or 14.8%, to ₹6.22 crore from ₹5.42 crore in Q2 FY25. Cost of materials rose ₹1.05 crore or 27.5% to ₹4.87 crore, and employee cost rose ₹0.06 crore or 15.0% to ₹0.46 crore. Finance costs fell ₹0.06 crore or 18.8% to ₹0.26 crore, while depreciation fell ₹0.03 crore or 7.0% to ₹0.40 crore.

Other expenses fell ₹0.26 crore or 38.8% to ₹0.41 crore, but other income declined ₹0.27 crore or 55.1% to ₹0.22 crore. There was no exceptional item in Q2 FY26, compared with an exceptional charge of ₹0.89 crore in Q2 FY25. The tax line was a credit of ₹0.21 crore, against a credit of ₹0.07 crore in the year-ago quarter.

The filings did not state a reason for the year-on-year movement in the cost of materials, other income or operating expenses. Against Q1 FY26, total expenses fell ₹2.35 crore or 27.4%, including a ₹1.13 crore fall in cost of materials and a ₹0.35 crore fall in other expenses, but other income declined ₹0.02 crore to ₹0.22 crore.

How did the first half of FY26 go?

In H1 FY26, Supreme Engineering reported standalone revenue of ₹13.54 crore, up ₹5.80 crore or 74.9% from ₹7.74 crore in H1 FY25. Total income rose ₹5.75 crore or 69.7% to ₹14.0 crore from ₹8.25 crore.

PBT improved to a loss of ₹0.79 crore from a loss of ₹2.46 crore, while PAT improved to a net loss of ₹0.58 crore from a net loss of ₹2.36 crore. EPS improved to -₹0.46 from -₹0.94. The half-year figures are standalone; no consolidated basis was provided.

What do the balance sheet and cash flow show?

Total assets stood at ₹31.19 crore on 30 September 2025, compared with ₹29.67 crore on 31 March 2025. Total equity remained negative at -₹89.47 crore against -₹88.90 crore, while borrowings were ₹89.32 crore compared with ₹89.67 crore. Cash was unchanged at ₹2.19 crore, inventories rose to ₹8.79 crore from ₹7.21 crore, and trade receivables increased to ₹0.92 crore from ₹0.55 crore.

For H1 FY26, net cash from operating activities was ₹0.95 crore, compared with an outflow of ₹10.34 crore in H1 FY25. Investing cash flow was an outflow of ₹0.01 crore, against an inflow of ₹0.01 crore, while financing cash flow was an outflow of ₹0.94 crore compared with an inflow of ₹10.56 crore. There was no capital expenditure in either period, and closing cash in H1 FY25 was ₹2.15 crore.

How has Supreme Engineering done over the last 8 quarters?

Revenue peaked at ₹8.40 crore in Q1 FY26 and fell to ₹5.14 crore in Q2 FY26. It had bottomed at ₹3.82 crore in Q1 FY25, and revenue rose year on year in each of the last three quarters. Profit after tax moved from ₹0.07 crore in Q1 FY26 to a net loss of ₹0.65 crore in Q2 FY26; its lowest point was a net loss of ₹9.00 crore in Q4 FY24.

EBITDA margin improved from a low of -121.2% in Q4 FY25 to 6.8% in Q1 FY26, before declining to -8.1% in Q2 FY26. The latest quarter therefore showed lower revenue, a return to loss and a lower margin than the preceding quarter, although the year-on-year loss narrowed from ₹1.83 crore to ₹0.65 crore.

What did the auditors point out?

Rushabh Davda & Associates issued a qualified opinion on the annual financial results for the year ended 31 March 2025. The auditors said they could not comment on the correctness of the quantities and valuation of inventory because they had not conducted physical verification at 31 March 2025, following their late appointment as statutory auditors, and the stock movement register or supporting documentation was unavailable for cross-verification.

The audit report stated that current liabilities exceeded total assets, resulting in negative net worth, and that these conditions indicated a material uncertainty that could cast significant doubt on the company’s ability to continue as a going concern. Management prepared the results on a going-concern basis while pursuing loan restructuring, fund infusion, preferential allotment and asset monetisation; the auditors said the appropriateness of this assumption depended on successful implementation, which remained to be concluded.