Surat Trade’s revenue jumps 62% but profit flatlines
Full-year revenue hit ₹111.35 cr, but net profit slipped to ₹10.98 cr as a Q4 loss erased earlier gains.
— 1 earlier story on Surat Trade and Mercantile Ltd. →What's new
- Full-year revenue jumped 62% to ₹111.35 cr, but net profit slipped 6% to ₹10.98 cr.
- The company posted a small net loss of ₹0.44 cr in Q4, offsetting strong operating performance earlier in the year.
- Audit opinion was clean; a whole-time director was reappointed and a new company secretary was hired.
Why this matters
Top-line growth is strong, but the bottom-line didn't follow. The Q4 loss shows that the second half of the year was weaker than the first, and the year's profit actually shrank. For a nano-cap, that kind of disconnect between sales and profit warrants a closer look at margins.
What we're watching
- Whether the Q4 loss is a one-off or the start of a margin trend.
- How the company plans to manage costs as revenue scales.
- The next quarterly results to see if the full-year profit decline continues.
The full read
Surat Trade and Mercantile’s top line is growing fast. Full-year revenue for the fiscal year ended March 31, 2026, jumped 62% to ₹111.35 crore. But the profit didn’t follow. Net profit slipped 6% to ₹10.98 crore from ₹11.66 crore. The culprit was the fourth quarter, where the company posted a net loss of ₹0.44 crore, erasing the surplus from earlier in the year. It’s a nano-cap, so the numbers are small in absolute terms, but the margin trend is clear: sales are scaling, but the cost base isn’t keeping up. The audit opinion was clean, and the board made routine governance appointments. The growth story is intact, but the profitability question just got louder.
Questions answered
- How did Surat Trade’s full-year profit perform despite the revenue surge?
- Net profit slipped to ₹10.98 crore from ₹11.66 crore in the prior year, a 6% decline, even as revenue grew 62% to ₹111.35 crore. The disconnect was driven by a net loss of ₹0.44 crore in the fourth quarter.
- What happened in the fourth quarter?
- The company posted a net loss of ₹0.44 crore for the quarter ended March 31, 2026. This loss was enough to offset the stronger operating results from the first three quarters of the fiscal year.
- Were there any governance changes in the filing?
- The board reappointed a whole-time director and appointed a new company secretary. The statutory audit report was clean, with no qualifications.
- What does the score of 5 out of 10 indicate?
- The score reflects a routine earnings disclosure with no unexpected news. The filing is a standard periodic result, not a market-moving event.
Story so far
All notes on SURATRAML →- 26 May 2026 · 2:29 PM IST Surat Trade’s revenue jumps 62% but profit flatlines
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