Shanthi Gears LimitedQuarter ended 30 June 2026 Results & Financial Update
Shanthi Gears Limited: Quarter ended 30 June 2026 standalone results and company financials – revenue ₹115.49 Cr, PAT ₹9.85 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 glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Shanthi Gears Quarter ended 30 June 2026 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
Shanthi Gears Limited reported its financial results for the first quarter of fiscal year 2027, showcasing a moderation in headline revenue and profitability compared to both the preceding quarter and the corresponding period of the previous year.
Standalone revenue from operations for the quarter ended 30 June 2026 stood at 115.49 crore rupees, reflecting a contraction relative to the 134.89 crore rupees recorded in Q1 FY26 and the 135.10 crore rupees reported in Q4 FY26.
Total income for the quarter reached 119.65 crore rupees, incorporating other income of 4.36 crore rupees, which compared against 138.66 crore rupees in the year-ago period and 140.95 crore rupees in the previous quarter.
Profitability faced downward pressure, with profit before tax (PBT) declining to 14.17 crore rupees from 30.62 crore rupees in Q1 FY26 and 25.03 crore rupees in Q4 FY26. Profit after tax (PAT) followed a similar trajectory, settling at 9.85 crore rupees compared to 22.69 crore rupees in the corresponding quarter of the previous year and 16.27 crore rupees in the preceding quarter.
Basic and diluted earnings per share (EPS) for the quarter stood at 1.28 rupees, down from 2.96 rupees in Q1 FY26 and 2.12 rupees in Q4 FY26.
Despite softer sequential earnings, the company maintained disciplined operational metrics, achieving a return on average invested capital (ROIC) of 17% for the quarter and generating positive free cash flow of 16.20 crore rupees.
The unexecuted order book as of 30 June 2026 stood robust at 378 crore rupees, providing forward revenue visibility for upcoming quarters.
01 · Business model
What does Shanthi Gears do?
Shanthi Gears Limited is a manufacturer of industrial gearboxes and gear products, operating as a subsidiary of Tube Investments of India Limited (TII) within the Murugappa Group.
The company produces standard and custom-engineered gear solutions utilized across diverse heavy industrial applications and manufacturing sectors.
The business model centers on maintaining high operating efficiency, disciplined capital allocation, and strong cash generation anchored by four core management priorities: revenue growth, profitability, return on invested capital (ROIC), and free cash flow.
02 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Quarter ended 30 June 2026 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹115.49 Cr | ₹134.89 Cr | ₹135.10 Cr |
| Total income | ₹119.65 Cr | ₹138.66 Cr | ₹140.95 Cr |
| Profit before tax | ₹14.17 Cr | ₹30.62 Cr | ₹21.81 Cr |
| Profit after tax | ₹9.85 Cr | ₹22.69 Cr | ₹16.27 Cr |
| EPS | ₹1.28 | ₹2.96 | ₹2.12 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 8.5% 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 12.3% 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.
Total income exceeded operating revenue by ₹4.16 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
03 · Why it moved
Why the quarter looked the way it did
What drove margins
Cost of materials consumed for the quarter was 70.87 crore rupees, accompanied by a positive inventory change of 10.98 crore rupees reflecting adjustments in finished goods and work-in-progress.
Employee benefits expense stood at 19.78 crore rupees, while other expenses accounted for 20.64 crore rupees during the quarter.
Depreciation and amortisation expenses were reported at 5.06 crore rupees, and finance costs stood at 0.11 crore rupees for the quarter.
04 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company's main business is the manufacture of gearboxes and gear products, with management reporting no separate reportable segments under Ind AS 108.
05 · Reported developments
What changed operationally
The company achieved a return on average invested capital (ROIC) of 17% and generated 16.20 crore rupees in free cash flow during Q1 FY27.
06 · Pressure points & risks
What is not going smoothly
Revenue and profit after tax declined both year-on-year and sequentially compared to Q1 FY26 and Q4 FY26.
07 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
The company generated a free cash flow of 16.20 crore rupees during the quarter ended 30 June 2026.
08 · Beyond the numbers
What changed beyond the numbers
Reported update
Resignation of Senior Management
Mr. Malliraj S submitted his resignation as Head – Strategic Sourcing of the company, effective from the closing business hours of 15 September 2026 due to personal reasons.
09 · Key Q&A
The quarter, answered directly
What does Shanthi Gears do?
Shanthi Gears Limited is a manufacturer of industrial gearboxes and gear products, operating as a subsidiary of Tube Investments of India Limited (TII) within the Murugappa Group.
What is the clearest takeaway from Quarter ended 30 June 2026?
Shanthi Gears Limited reported its financial results for the first quarter of fiscal year 2027, showcasing a moderation in headline revenue and profitability compared to both the preceding quarter and the corresponding period of the previous year.
What drove revenue or demand?
The company's main business is the manufacture of gearboxes and gear products, with management reporting no separate reportable segments under Ind AS 108.
What mattered most for margins or profitability?
Cost of materials consumed for the quarter was 70.87 crore rupees, accompanied by a positive inventory change of 10.98 crore rupees reflecting adjustments in finished goods and work-in-progress.
What changed operationally beyond the headline numbers?
Mr. Malliraj S submitted his resignation as Head – Strategic Sourcing of the company, effective from the closing business hours of 15 September 2026 due to personal reasons.
What are the main pressure points disclosed for the quarter?
Revenue and profit after tax declined both year-on-year and sequentially compared to Q1 FY26 and Q4 FY26.
10 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
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Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
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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.
11 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Order Book Execution: Monitor the conversion of the 378 crore rupee unexecuted order book into recognized revenue in subsequent quarters.
- 02
Return Metrics and Cash Generation: Track the sustainability of the 17% ROIC and continued free cash flow generation.
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.