Century Enka Q1 profit jumps 4x to ₹61 cr; revenue up 38%
Standalone net profit surges to ₹61.31 crore from ₹15.35 crore a year ago, as revenue hits ₹554 crore. Margin improvement continues from prior quarter guidance lift.
— 4 earlier stories on Century Enka Ltd. →What's new
- Net profit jumps to ₹61.31 crore, up from ₹15.35 crore YoY
- Revenue from operations rises 38% to ₹554.29 crore
- Auditor flags ₹730 lakh excise duty matter pending before Supreme Court
Why this matters
Century Enka's profit surge validates the operating margin guidance lift to 7-10% that management flagged in May. The 4x profit jump is the strongest quarter in recent history, but the excise case remains an overhang.
What we're watching
- Whether margins can sustain at these levels for the rest of FY27
- Supreme Court outcome on the ₹730 lakh excise matter
- Fresh capacity from the polyester tyre cord project, now expected in FY27
The full read
Century Enka delivered a blowout quarter. Standalone net profit surged to ₹61.31 crore on revenue of ₹554 crore — a fourfold jump from the ₹15 crore earned a year ago. Revenue climbed 38%, well ahead of the ₹484 crore reported in the March quarter. The numbers validate management's May guidance lift, when it raised the operating margin band to 7-10% from the earlier 6-8%. The statutory auditor appended an emphasis of matter on an ₹730 lakh excise duty dispute pending before the Supreme Court, but called it a continuation of an existing position. For a company with a market cap of just ₹1,132 crore and a trailing P/E of 11.2, these numbers make the valuation look modest, provided the margin gains are repeatable. That is the next test.
Questions answered
- What drove the profit surge in Q1?
- The profit jump is primarily due to a 38% revenue increase, coupled with improving operating margins after the company revised its margin guidance to 7-10% in May 2026.
- How does this quarter compare to the previous quarter (Mar 2026)?
- Revenue rose from ₹484 crore to ₹554 crore, and net profit jumped from ₹40 crore to ₹61 crore, marking a 53% sequential profit growth.
- What is the excise duty matter flagged by the auditor?
- The auditor's review report includes an emphasis of matter regarding an excise duty of ₹730 lakh that is pending before the Supreme Court. The management has not provided any new update on the case.
- Is this performance sustainable for the rest of the year?
- The company has guided for operating margins of 7-10% for FY27. Q1's performance is at the upper end of that range, but sustainability depends on raw material costs and demand trends.
Century Enka Ltd.
Latest quarter · Mar 2026
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All notes on CENTENKA →- 28 Jul 2026 · 1:53 PM IST Century Enka Q1 profit jumps 4x to ₹61 cr; revenue up 38%
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