Bothra Metals (BMAL) Q4 FY26 Profit Jumps 170% Despite Lower Revenue
Bothra Metals & Alloys posted a sharp profit rise in Q4 FY26, driven by disciplined cost-cutting and lower interest, even as sales fell from a year ago.
Bothra Metals & Alloys reported a 170% jump in Q4 net profit to ₹0.27 crore, even as revenue declined 8.4% year-on-year. The profit surge was powered by a significant reduction in total expenses and lower interest costs, improving the net margin.
For a small metals trader, the quarter often turns on a single shipment or a swing in working capital. Bothra Metals & Alloys' March quarter delivered a sharp profit rebound from a weak September, but the top line slipped from a high base a year ago, framing a story of margin recovery over growth.
The numbers show a quarter of contrasts. Revenue fell 8.4% year-on-year to ₹17.29 crore, but profit leapt 170% to ₹0.27 crore. Sequentially, sales jumped 70% from a tepid ₹10.15 crore in Q2. The net profit margin expanded 110 basis points from a year earlier to 1.6%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ4 FY26 | Same quarter LYQ4 FY25 |
|---|---|---|
| Revenue (₹ Cr) | 17.29YoY -8.4% | 18.87 |
| Profit (₹ Cr) | 0.27YoY +170% | 0.10 |
| Net Margin (%) | 1.6YoY +220% | 0.5 |
The cost squeeze that lifted profit
The profit surge came from a tighter grip on costs. Total expenses fell 9.2% year-on-year, outpacing the revenue decline. A key driver was a 10.5% drop in financial costs for the full year, which ScanX.Trade attributed to proactive working capital management. Interest expense in the quarter was down 9.4%.
This discipline offset a 27% rise in depreciation and a 71% plunge in other income. The result was a leaner operation that converted a smaller revenue base into higher earnings.
A debt burden that lingers
While interest costs are falling, the underlying debt remains a structural weight. The company's debt-to-equity ratio stood at 0.65 at FY26-end, according to data from Newboard. Borrowings were ₹11.6 crore against a net worth of ₹17.8 crore.
This leverage, high for a small company, keeps the interest cover a thin 1.5 times. Profitability improvements are thus vital to service this load without straining cash flows.
Looking beyond the volatile quarter
Management has not provided formal guidance, but the focus appears set on sustainable growth. The annual report noted plans to expand secondary aluminium sourcing and explore phased extrusion re-establishment. For now, the immediate future may hinge on commodity price swings.
A report from The Economic Times in November 2026 suggested non-ferrous companies could see sequential earnings pressure from lower aluminium prices. Bothra's trading model makes it sensitive to such moves, even as its own cost control provides a buffer.
Key Points
- Net profit surged 170% year-on-year in Q4 FY26 to ₹0.27 crore, driven by a 9.2% reduction in total expenses.
- Revenue declined 8.4% from the year-ago quarter to ₹17.29 crore, though it recovered 70% sequentially from a weak Q2.
- Improved cost discipline, including a 10.5% drop in annual finance costs, expanded the net profit margin by 110 basis points to 1.6%.
- The company maintains a leveraged balance sheet with a debt-to-equity ratio of 0.65, keeping interest coverage tight.
Hexa Perspective
Bothra's quarter shows a small company successfully navigating a softer revenue period by clamping down on costs. The profit jump is meaningful, but it springs from a very low base and remains vulnerable to the inherent volatility of metal trading.
The path ahead depends on two forces: sustaining this newfound cost discipline to protect thin margins, and finding a more stable revenue trajectory. With debt levels still elevated, the company's ability to generate consistent cash flow will be the true test of this turnaround's durability.
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