IST's ₹153.5 cr profit rests on ₹133 cr of other income
The manufacturing and SEZ business brought in ₹126 cr. The bottom line was built by non-operating gains that dwarfed it.
What's new
- FY26 net profit was ₹153.5 crore, but revenue from operations was only ₹126.16 crore.
- The gap was filled by ₹133.16 crore in non-operating income.
- SEZ segment revenue was ₹92.19 crore; manufacturing contributed ₹33.97 crore.
Why this matters
A profit figure nearly double core business revenue is a red flag for earnings quality. The audit is clean, but the business generating the profit is far smaller than the headline number suggests.
What we're watching
- Whether the ₹133 cr in other income is recurring or a one-off.
- How the company plans to deploy its year-end cash surplus.
- If core revenue growth can narrow the gap to profitability in FY27.
The full read
IST's headline number is a clean-looking ₹153.5 crore net profit. Look closer and the story fractures. Operational revenue was just ₹126.16 crore. The profit was manufactured by ₹133.16 crore in other income. That non-operating figure is larger than the entire core business. Within the operational side, SEZ income was ₹92.19 crore and manufacturing was ₹33.97 crore. The audit is clean, which removes accounting risk, but not business risk. The company's cash surplus grew, but likely from the same non-core pot. For a micro-cap, this is a classic case of earnings quality masking operational scale. The open question is whether the other income is repeatable. Otherwise, the business generating profit is far smaller than the number suggests.
Questions answered
- How can profit be higher than revenue from operations?
- The company booked ₹133.16 crore in 'Other Income' on top of its ₹126.16 crore in operational revenue. This non-operating income, likely from investments or asset sales, pushed total income to ₹259.32 crore and net profit to ₹153.5 crore.
- What are the main business segments?
- The SEZ business generated ₹92.19 crore in revenue, while manufacturing contributed ₹33.97 crore. Together, they account for the total operational revenue of ₹126.16 crore.
- Is the financial report reliable?
- Yes. The company's statutory auditors issued an unmodified, or 'clean', audit report for the year ended March 31, 2026, confirming the figures are presented fairly.
- What does the cash surplus mean?
- The filing notes a healthy cash surplus at year-end. Given the large other income figure, this suggests the surplus may be linked to the same non-core activities that drove profit, rather than from cash generated by running the core SEZ and manufacturing business.