Mangalam profit doubles to ₹25 cr on 17.5% revenue growth
Net profit hit ₹25.38 crore as revenue grew to ₹622.57 crore. The bottom line was hit by a ₹20.17 crore insurance claim reversal and a ₹5.50 crore loan write-off.
— 1 earlier story on Mangalam Organics Ltd. →What's new
- Net profit doubled to ₹25.38 crore on 17.5% revenue growth to ₹622.57 crore.
- Reversed a ₹20.17 crore insurance claim accrual for its camphor facility fire.
- Wrote off ₹5.50 crore in loans to two non-operational subsidiaries.
Why this matters
The headline profit doubled despite two deliberate charges that reduced the reported number. The insurance reversal is a conservative move, deferring a gain the company had already booked until settlement is final. The write-off removes a non-core asset from the balance sheet.
What we're watching
- Final settlement of the camphor facility insurance claim to resolve the reversal.
- Whether core profit growth sustains after the facility disruption fades.
- Any further consolidation of the written-off subsidiaries.
The full read
Mangalam Organics' profit doubled. The ₹25.38 crore bottom line for FY26, however, includes a ₹20.17 crore insurance claim reversal and a ₹5.50 crore loan write-off. The insurance reversal is a deliberate, conservative accounting move for a fire at its camphor facility. The write-off removes loans to non-operational subsidiaries. That strength comes from 17.5% revenue growth to ₹622.57 crore, achieved despite the facility disruption. For a nano-cap, the core trajectory looks solid, with management choosing caution on a major claim payout.
Questions answered
- Why did Mangalam reverse the ₹20.17 crore insurance claim?
- The company reversed an accrual it had already booked for the fire, opting to wait for final settlement confirmation before recognizing the gain. This is conservative accounting that defers the benefit.
- What were the two non-recurring charges that hit the P&L?
- The company reversed a ₹20.17 crore insurance claim and wrote off ₹5.50 crore in loans to non-operational subsidiaries. Both items reduced reported profit for the year.
- How strong was the underlying revenue growth?
- Revenue grew 17.5% to ₹622.57 crore. The rationale describes this as resilient growth following a significant facility disruption.
- What is the nature of the subsidiaries that were written off?
- The ₹5.50 crore write-off covers loans to Mangalam Pooja Stores and Mangalam Speciality Chemicals, which are described as non-operational. This removes the loans from the balance sheet.
Story so far
All notes on MANORG →- 29 May 2026 · 6:17 PM IST Mangalam profit doubles to ₹25 cr on 17.5% revenue growth
- 1d ago Mangalam's net profit doubled. Then it wrote off the insurance money.