Ashish Polyplast (ASHISHPO) Q2 FY27 Profit Plunges 93% as Surging Costs Overwhelm Sales
The PVC pipe maker's revenue grew 5% year-on-year, but a sharp spike in raw material costs and the absence of one-off gains led to a near wipeout of quarterly profit.
Ashish Polyplast's Q2 FY27 tells a story of diverging trends. Revenue grew to ₹3.88 crore, but profit collapsed to just ₹5 lakh due to a severe cost squeeze and the end of a non-operating income boost.
For a small PVC pipe manufacturer, a quarter of rising sales should bring stable earnings. Ashish Polyplast's second quarter delivered the opposite: revenue climbed, but profit nearly vanished. The numbers reveal a business caught between higher sales and a punishing cost surge that erased nearly all its gains.
The company reported revenue of ₹3.88 crore for Q2 FY27, a 5.1% increase from a year ago and a 13.1% sequential jump. Yet, net profit collapsed to just ₹5 lakh, down 92.8% from the previous quarter. This pushed the net profit margin down to 1.3%, a stark drop from 20% in Q1.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Period | Sep 2026 | Jun 2026 | Sep 2025 |
| Revenue (₹ Cr) | 3.88YoY +5.1% | 3.43 | 3.69 |
| Profit (₹ Cr) | 0.05YoY +171% | 0.69 | -0.07 |
| Net Profit Margin (%) | 1.3YoY +165% | 20.0 | -2.0 |
Why the profit vanished
Two forces converged to crush profitability. First, raw material costs soared. According to a scanx.trade report, the cost of materials consumed surged to ₹3.33 crore in Q2 from ₹2.54 crore in Q1, far outpacing the revenue increase.
Second, a one-time tailwind from the prior quarter disappeared. The same report notes that Q1's profit was flattered by ₹64 lakh in unrealized fair value gains on mutual fund investments. In Q2, this other income shrank to just ₹7 lakh, exposing the underlying operational squeeze.
A working capital strain emerges
The cost pressure is now showing up in cash flow. Scanx.trade also reported that operating cash flow turned negative for the half-year, at -₹0.89 lakh. This was driven by a sharp ₹66 lakh increase in trade receivables, indicating that more cash is tied up in unpaid customer bills.
The industry's mixed signals
Broader industry reports suggest a complex backdrop. Analysts at ICICI Securities, cited by insights.dsij.in, note healthy pipe demand in Q2 FY27 as channel inventories normalized after destocking. However, rising PVC resin prices—a key input—have increased working capital needs across the sector.
For smaller players like Ashish Polyplast, this volatility is a double-edged sword. It can support pricing but also squeezes margins if costs cannot be passed through quickly enough.
Key Points
- Revenue grew 5.1% year-on-year and 13.1% sequentially, reaching ₹3.88 crore.
- Net profit collapsed 92.8% quarter-on-quarter to just ₹5 lakh due to surging material costs and the absence of prior-quarter investment gains.
- Operating cash flow turned negative as trade receivables ballooned, signaling a working capital strain.
- The company's trailing-twelve-month net profit margin stands at 3.7%, well below the industry average.
Hexa Perspective
The quarter lays bare Ashish Polyplast's vulnerability to input cost swings. Its modest scale offers little buffer when raw material prices spike, a risk amplified by its thin operating margins.
The path forward hinges on its ability to manage working capital more tightly and pass on cost increases. With the stock trading at a P/E of 20.8, a 46% discount to the industry average, the market has priced in this fragility. Investors are weighing whether the current demand environment can provide enough pricing power to rebuild sustainable profitability.
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