Duroply profit sinks 62% in FY26 despite revenue growth
Nano-cap plywood maker posts Q4 net loss of ₹2.45 cr; one-time labour costs and deferred tax hit earnings.
— 1 earlier story on Duroply Industries Ltd. →What's new
- Q4 swung to ₹2.45 cr loss vs ₹2.73 cr profit a year ago
- Full-year profit fell 62% to ₹2.94 cr on ₹402.67 cr revenue
- Exceptional charge of ₹27.5 lakhs on new labour code; deferred tax ate ₹2.94 cr
Why it matters
For a nano-cap with a ₹142 cr market cap, a 62% profit decline is a sharp reversal. Revenue is growing, but one-time costs and a large deferred tax charge wiped out gains. The ₹2.27 cr litigation loan and equity dilution from warrant conversions add overhang.
What we're watching
- Whether the labour-code charge recurs in FY27
- Recurrence of deferred tax liabilities
- Resolution of the litigation loan
The full read
Duroply Industries grew revenue 8.3% to ₹402.67 cr in FY26, but net profit collapsed 62% to ₹2.94 cr, blindsiding investors in the nano-cap plywood maker. The fourth quarter was especially bad: a net loss of ₹2.45 cr versus a ₹2.73 cr profit last year. The culprit is a cocktail of one-time items — a ₹27.5 lakh exceptional charge from a new labour code and a massive ₹2.94 cr deferred tax expense. Also weighing on the books: a ₹2.27 cr litigation-related loan and equity dilution from warrant conversions that added ~₹20 cr to equity. The score cap of 6/10 reflects the absence of guidance or material disclosures beyond the numbers themselves.