Munjal Auto reports declining Q2 FY26 profits despite revenue growth; tax regime change impacts results
Munjal Auto reported increased Q2 FY26 revenue but saw a substantial decline in standalone and consolidated net profits and EPS, partly due to a non-cash tax charge.
Financial results are a primary indicator of a company's health and future prospects. A significant decline in profitability and EPS, despite revenue growth, is a material event that would highly impact investor perception and stock performance.
Despite an increase in revenue from operations, both standalone and consolidated Profit After Tax and Basic EPS for Q2 FY26 saw significant declines compared to both the previous quarter and the same quarter last year. The non-cash tax charge related to the new tax regime further impacted profitability.
Munjal Auto Industries Limited announced its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (Q2 FY26). * Standalone Performance (Q2 FY26): * Revenue from Operations: ₹37,444.47 lakhs, an increase from ₹29,675.76 lakhs in Q1 FY26 and ₹33,037.06 lakhs in Q2 FY25. * Profit After Tax: ₹633.64 lakhs, a significant decrease from ₹837.19 lakhs in Q1 FY26 and ₹1,507.50 lakhs in Q2 FY25. * Basic Earnings Per Share (EPS): ₹0.63, down from ₹0.84 in Q1 FY26 and ₹1.51 in Q2 FY25. * Consolidated Performance (Q2 FY26): * Revenue from Operations: ₹58,408.65 lakhs, an increase from ₹49,101.52 lakhs in Q1 FY26 and ₹52,248.74 lakhs in Q2 FY25. * Profit After Tax: ₹1,348.15 lakhs, a significant decrease from ₹1,931.49 lakhs in Q1 FY26 and ₹2,030.85 lakhs in Q2 FY25. * Basic EPS: ₹1.12, down from ₹1.58 in Q1 FY26 and ₹1.86 in Q2 FY25. * The company has elected to pay corporate income tax at 22% plus surcharge and cess (aggregating to 25.17%) from FY2025-26 under Section 115BAA of the Income Tax Act, 1961. This resulted in a non-cash tax charge of ₹409.36 lakhs pertaining to the previous year, mainly due to a change in the tax rate on deferred tax assets and unavailed MAT credit.
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Munjal Auto Industries Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Munjal Auto Industries Limited. Read the original for the full detail.