Tarsons products sees mixed Q2 FY26 amid capex expansion

Tarsons Products Limited reported steady revenue growth for Q2 FY26, reaching INR81 crores on a standalone basis and INR102 crores consolidated, a 3% increase year-over-year. EBITDA for Q2 FY26 also saw an 11% year-over-year rise to INR26 crores, with a margin of 32.5%, an improvement of 320 basis points from Q2 FY25. However, profit after tax (PAT) declined to INR6.5 crores from INR12.9 crores in Q2 FY25, primarily due to higher depreciation expenses of INR20 crores from the partial capitalization of its Panchla facility.

The company's operating cash flow more than doubled to INR44 crores in H1 FY26, reflecting enhanced operational efficiency. Tarsons is investing significantly in capacity expansion, with INR251 crores in capital work in progress for the Panchla and Amta facilities, expected to be fully operational by Q4 FY26. Total capex for Panchla and Amta, including existing plants, is projected to be between INR550 crores and INR650 crores, with peak depreciation estimated at INR85-90 crores in FY26 and INR100-105 crores in FY27.

Despite global uncertainties and tariff challenges impacting exports, Tarsons is optimistic about future growth driven by new product launches and increased manufacturing capacity. The company anticipates a strong turnaround in revenue and profitability as utilization levels ramp up in FY27 and FY28.