Hindustan Composites LimitedQ1 FY27 Results & Financial Update
Hindustan Composites Limited: Q1 FY27 consolidated results and company financials – revenue ₹20.05 Cr, PAT ₹8.68 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Find an answer
Ask this result
Chart · Market context
Hindustan Composites price & chart
Market price₹414.15
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore Hindustan Composites Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Hindustan Composites reported total revenue from operations of INR 20.05 crore for the quarter ended June 30, 2026, alongside an identical total income figure of INR 20.05 crore under continuing operations.
Profit before tax (PBT) from continuing operations stood at INR 1.58 crore for the quarter, reflecting the underlying earnings of the retained investment and commodity trading segments.
Total profit after tax (PAT) reached INR 8.68 crore, bolstered significantly by the inclusion of INR 6.75 crore in net profit generated from discontinued operations before the formal closing of the friction business transfer.
Basic and diluted earnings per share (EPS) for the quarter came in at INR 5.88 combined, comprising INR 1.31 from continuing operations and INR 4.57 from discontinued operations.
The Board of Directors approved the transfer of the company's Friction Business Undertaking as a going concern on a slump sale basis to Rane (Madras) Limited for a lump sum cash consideration of INR 370 crore, subject to customary closing adjustments and shareholder approval.
Due to the pending divestment, the financial results of the friction business undertaking are classified under discontinued operations in compliance with applicable accounting standards, separating them from continuing segments.
Profit before tax from continuing operations stood at INR 1.58 crore, while total profit after tax across both continuing and discontinued operations reached INR 8.68 crore.
01 · Business model
What does Hindustan Composites do?
Hindustan Composites Limited operates in the composite materials and friction products sector, manufacturing specialized components for automotive, railway, and industrial applications.
The company's operational footprint has historically spanned industrial friction materials alongside investment and commodity trading activities managed through distinct operating segments.
The business model undergoes a structural transition following the board's decision to divest its core friction manufacturing undertaking via a slump sale to Rane (Madras) Limited.
02 · Historical context
What shaped the business before this quarter
Since the financial year 2021-22, the company discontinued recognizing its share of further losses from its 49% joint venture, Compo Advics (India) Private Limited, because cumulative losses exceeded the initial investment value under IND AS 28.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹20.05 Cr |
| Total income | ₹20.05 Cr |
| Profit before tax | ₹1.58 Cr |
| Profit after tax | ₹8.68 Cr |
| EPS | ₹5.88 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 43.3% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 7.9% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Continuing revenue of INR 20.05 crore was generated primarily from two segments: Investment activities contributed INR 9.81 crore, and commodity trading contributed INR 10.24 crore.
Continuing revenue of INR 20.05 crore derived from investment income of INR 9.81 crore and commodity trading revenue of INR 10.24 crore.
The Friction Business Undertaking contributed INR 85.53 crore in operational revenue prior to its classified transfer.
What drove margins
The company incurred INR 20.67 crore in purchases of stock-in-trade for continuing operations during the quarter, offset by changes in inventories of stock-in-trade amounting to a positive adjustment of INR 10.84 crore.
Continuing operating costs included employee benefits expense of INR 1.89 crore, depreciation and amortization of INR 0.96 crore, and other expenses of INR 5.79 crore.
Continuing expenses included stock-in-trade purchases of INR 20.67 crore offset by inventory changes of negative INR 10.84 crore.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Reported segment revenue of INR 9.81 crore and a segment result of INR 4.12 crore for the quarter ended June 30, 2026.
Generated segment revenue of INR 10.24 crore and a positive segment result of INR 0.39 crore.
Generated revenue of INR 9.81 crore with a segment profit of INR 4.12 crore and segment assets of INR 115.75 crore.
Generated revenue of INR 10.24 crore with a segment profit of INR 0.39 crore and segment assets of INR 1.03 crore.
06 · Strategy & new businesses
How the company is trying to change its growth mix
Entered into a Business Transfer Agreement dated June 30, 2026, to transfer the entire friction business undertaking—encompassing automotive, railway, and industrial friction materials—to Rane (Madras) Limited for INR 370 crore in cash, subject to shareholder approval and conditions precedent.
07 · Reported developments
What changed operationally
The friction business undertaking contributed INR 8.21 crore in profit before tax and INR 6.75 crore in profit after tax during the quarter prior to the finalization of the slump sale.
The proposed slump sale of the friction business for INR 370 crore provides a major cash realization opportunity for shareholders.
08 · Items worth noticing
The line items that can distort a quick read
The results, assets, and liabilities of the friction business undertaking have been segregated and disclosed under discontinued operations due to the pending slump sale agreement.
09 · Beyond the numbers
What changed beyond the numbers
Reported update
Secretarial Auditor Appointment
The board recommended the appointment of M/s. R M Mimani & Associates LLP as Secretarial Auditors for a five-year term effective from FY 2026-27 to FY 2030-31, subject to shareholder approval at the ensuing annual general meeting.
Reported update
Dividend Payout Timeline
The dividend recommended for the financial year ended March 31, 2026, is scheduled to be paid between October 1, 2026, and October 15, 2026, pending approval at the 62nd annual general meeting.
Reported update
Secretarial auditor appointment
The Board recommended the appointment of M/s. R M Mimani & Associates LLP as Secretarial Auditors for a 5-year term from FY27 to FY31, subject to shareholder approval.
10 · Key Q&A
The quarter, answered directly
What does Hindustan Composites do?
Hindustan Composites Limited operates in the composite materials and friction products sector, manufacturing specialized components for automotive, railway, and industrial applications.
What is the clearest takeaway from Q1 FY27?
Hindustan Composites reported total revenue from operations of INR 20.05 crore for the quarter ended June 30, 2026, alongside an identical total income figure of INR 20.05 crore under continuing operations.
What drove revenue or demand?
Continuing revenue of INR 20.05 crore was generated primarily from two segments: Investment activities contributed INR 9.81 crore, and commodity trading contributed INR 10.24 crore.
What mattered most for margins or profitability?
The company incurred INR 20.67 crore in purchases of stock-in-trade for continuing operations during the quarter, offset by changes in inventories of stock-in-trade amounting to a positive adjustment of INR 10.84 crore.
What changed operationally beyond the headline numbers?
Entered into a Business Transfer Agreement dated June 30, 2026, to transfer the entire friction business undertaking—encompassing automotive, railway, and industrial friction materials—to Rane (Madras) Limited for INR 370 crore in cash, subject to shareholder approval and conditions precedent.
What should the next disclosure help confirm?
Monitor the receipt of necessary shareholder approvals pursuant to Section 180(1)(a) of the Companies Act, 2013, and SEBI Listing Regulations for the transfer of the friction business undertaking.
11 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
12 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Shareholder Approval for Slump Sale: Monitor the receipt of necessary shareholder approvals pursuant to Section 180(1)(a) of the Companies Act, 2013, and SEBI Listing Regulations for the transfer of the friction business undertaking.
- 02
Transaction Closing Actions: Track the fulfillment of conditions precedent and closing actions specified in the Business Transfer Agreement with Rane (Madras) Limited.
- 03
Shareholder approval for slump sale: Monitor the upcoming general meeting and shareholder voting regarding the transfer of the Friction Business Undertaking to Rane (Madras) Limited.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.