Financials
Birla Cable’s Q2 FY25: Profit slump despite revenue growth
Mumbai: In the post-pandemic world, where homes turned into workspaces and streaming hubs, ultra-fast internet became a lifeline, tethering us to a digital reality. But behind those seamless connections lies the backbone of fibre optic networks, powered by companies like Birla Cable. Yet, even as the demand for digital infrastructure surges, Birla Cable finds itself navigating choppy waters. The company’s Q2 FY25 financial results, released on October 24, show revenue climbing, but rising operational costs have squeezed profits, casting a shadow over an otherwise bright sector.
For Q2 FY25, Birla Cable reported a standalone revenue from operations of Rs 18,171.67 lakh, reflecting a 4 per cent year-over-year increase from Rs 17,470.86 lakh in Q2 FY24. Consolidated revenue also improved, reaching Rs 18,274.92 lakh, up from Rs 17,761.15 lakh in the same quarter last year. This proliferation in revenue, while encouraging, wasn’t sufficient to shield the company’s profit from erosion due to escalating costs.
Net profit for the quarter plummeted drastically to Rs 200.49 lakh on a standalone basis—a 62 per cent dip compared to Rs 529.80 lakh in Q2 FY24. The consolidated profit mirrored this trend, declining to Rs 181.97 lakh from Rs 504.65 lakh the previous year. The profit drop was intensified by rising raw material costs, which reached Rs 14,426.19 lakh for standalone operations—a 5.7 per cent increase from the preceding quarter.
Operational costs across the board contributed to the decline in profitability. Total expenses rose to Rs 18,013.94 lakh, a significant jump from Rs 17,060.28 lakh in Q2 FY24. Employee expenses stayed steady at approximately Rs 840 lakh, while finance costs soared to Rs 395.05 lakh from Rs 327.87 lakh in the previous year. Depreciation expenses added further strain, climbing to Rs 383.01 lakh, indicating investments in infrastructure that are yet to yield returns.
One bright spot was the other comprehensive income (OCI), which surged to Rs 1,683.36 lakh from Rs 661.69 lakh in the prior year on a standalone basis. However, this gain primarily reflected revaluations in investment portfolios and other non-core elements, which have limited impact on operational performance.
The cash flow statement shows a decline in cash and cash equivalents to Rs 10.19 lakh by the end of Q2, a stark reduction from Rs 23.30 lakh in the same period last year. This drop stems from increased operating expenses and reduced cash generation, with net cash flow from operating activities down to Rs 5,082.14 lakh. This cash compression hints at tighter liquidity, potentially influencing the company’s future capital expenditures.
Birla Cable’s Q2 FY25 financial results underscore a revenue-positive but profit-challenged quarter, reflecting the complex interplay of market demand and rising costs. As a leader in India’s cable manufacturing sector, Birla Cable’s future profitability will likely depend on its capacity to manage costs amidst fluctuating raw material prices and financial expenses. While revenue growth suggests demand resilience, sustaining profitability will require cost discipline and a favourable macroeconomic environment.
MUMBAI: It’s time to brief the markets: Page Industries is showing that even when regulations tighten, it can still keep its footing in the innerwear business. The Bengaluru-based apparel major has reported its financials for the quarter ended 31 December 2025, delivering a performance that remains steady and well put together.
The company’s top line showed plenty of elasticity this quarter. Revenue from operations stretched to Rs 1,38,675.71 lakhs, a healthy jump from the Rs 1,29,085.82 lakhs reported in the preceding quarter. Compared to the same period last year, which stood at Rs 1,31,305.10 lakhs, it’s clear the brand’s grip on the market isn’t loosening. Total income for the quarter, including other finance gains, reached a comfortable Rs 1,39,919.03 lakhs.
However, it wasn’t all smooth silk. The Government of India’s new unified Labour Codes, covering everything from wages to social security, officially kicked in on 21 November 2025. This regulatory shift forced Page Industries to account for a one-time “exceptional item” cost of Rs 3,500.42 lakhs to cover incremental employee benefits and related obligations. Despite this Rs 35-crore legislative snag, the underlying business remained robust. Profit before tax stood at Rs 25,625.35 lakhs after the exceptional hit, and without that one-off cost, the figure would have been a more muscular Rs 29,125.77 lakhs. Net profit for the quarter came in at Rs 18,953.64 lakhs.
Total expenses rose to Rs 1,10,793.26 lakhs, driven largely by raw material consumption of Rs 30,162.65 lakhs and employee benefits of Rs 23,310.66 lakhs. Even so, the company’s operational strength ensured the bottom line remained firmly stitched together.
For shareholders, the news is particularly “fitting.” The Board has declared a third interim dividend for 2025-26 of Rs 125 per equity share. The record date has been set for 11 February 2026, with the payment scheduled on or before 6 March 2026. This follows two previous interim dividends of Rs 150 and Rs 125 declared earlier in the financial year, reinforcing the company’s commitment to sharing the spoils of its success.
Looking at the nine-month stretch ending December 2025, Page Industries has amassed total income of Rs 4,04,090.59 lakhs, with total comprehensive income of Rs 58,231.49 lakhs. While the basic earnings per share for the quarter dipped slightly to Rs 169.93, compared to Rs 183.48 in the same quarter last year, the year-to-date EPS remains a solid Rs 524.57.
Auditors at S.R. Batliboi & Associates LLP have given the results a “limited review” thumbs up, reporting no material misstatements. It seems that, as far as Page Industries is concerned, the business remains as well-constructed as its famous Jockey briefs.
