Mumbai: Augmont Enterprises reported a 6.8 per cent year-on-year increase in consolidated profit after tax to ₹120 crore for the second quarter ended September 30, 2026, despite a decline in total income.
The precious metals company reported stronger operating earnings, supported by growth in its consumer business and changes in its gold sourcing strategy.
Profit Growth
Augmont Enterprises' consolidated total income stood at ₹15,852 crore during Q2 FY27, compared with ₹21,754 crore in the corresponding quarter last year. Revenue from operations reached ₹15,836 crore during the July-September period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16 per cent year-on-year to ₹181 crore. The company reported higher profitability despite weaker overall business volumes in its enterprise segment.
Segment Performance
The enterprise business recorded revenue of ₹13,852 crore, representing a 32 per cent year-on-year decline. However, the consumer business delivered strong growth during the quarter. Consumer revenue surged 47.3 per cent to ₹1,984 crore, accounting for approximately 12.5 per cent of total quarterly revenue. The contrasting segment performance highlighted a shift in the company's revenue composition.
Sourcing Strategy
Augmont Enterprises significantly increased its reliance on domestic scrap sourcing during Q2 FY27. Domestic scrap accounted for 24.5 per cent of total procurement, compared with approximately 3 per cent in the corresponding quarter last year. The change represents a substantial shift in the company's procurement strategy.
Margin Improvement
Whole-time Director Ketan Kothari said the increased domestic scrap sourcing helped support better margins. However, he acknowledged that the sourcing transition involved a longer working capital cycle. The company's EBITDA growth indicates improved operating earnings despite the decline in total income.
Business Outlook
Augmont Enterprises' September-quarter results reflected stronger consumer business performance and higher operating profitability. Going forward, investors will monitor consumer demand, enterprise revenue, procurement costs and working capital requirements. The company's ability to maintain margins while managing its sourcing strategy will remain important for future performance.
Disclaimer: This report is based on company exchange filings and is for informational purposes only. Investors should independently assess risks before investing.
