Mallcom (India) Q2 profit declines despite revenue growth

Mallcom (India) Limited experienced a decrease in profitability for Q2-FY26, with EBITDA margins falling to 7.11% from 12.24% in Q2-FY25, primarily due to higher cost of goods sold. Profit after tax (PAT) for the quarter stood at INR 37 million, a significant decline from INR 101 million in Q2-FY25, resulting in PAT margins of 2.66% compared to 7.82% previously. Diluted EPS for Q2-FY26 was INR 5.99. Operational income for Q2-FY26 was INR 1,393 million, an increase from INR 1,291 million in Q2-FY25.

For the first half of FY26 (H1-FY26), operational income was INR 2,618 million, with EBITDA at INR 275 million and PAT at INR 136 million. H1-FY26 EBITDA margins were 10.50% and PAT margins were 5.19%, both lower than the previous fiscal year. Diluted EPS for H1-FY26 was INR 21.78.

The company highlighted operational developments including commercial production at its Sanand, Gujarat workwear unit, which involved a capex of INR 100 Cr. Additionally, a new unit for industrial safety shoes at Chandipur, West Bengal, is fully operational with a capex of INR 25 Cr. Mallcom (India) also commenced manufacturing PU coated gloves as an import substitute and received the 2nd Place in the CLE National Export Excellence Award 2024-25 for Industrial Leather Gloves.