Sedemac Mechatronics reported a 39.8% jump in quarterly revenue to Rs 400.64 crore, led by strong growth in its mobility segment. While profit after tax rose 30% to Rs 39.18 crore, investors should note a shift in operating cash flow, which turned negative due to higher inventory and receivable levels.
Sedemac Mechatronics Reports 30% Profit Growth in Q2
Revenue grew by 39.85% to Rs 400.64 crore; Profit after tax reached Rs 39.18 crore.
Reader Takeaway: Strong mobility segment sales drive overall growth, though rising inventory and receivables pressure operating cash flow.
What just happened
Sedemac Mechatronics released its financial results for the quarter ending September 30, 2026. The company posted a solid performance with revenue rising to Rs 400.64 crore from Rs 286.48 crore in the same period last year. Net profit improved to Rs 39.18 crore, up from Rs 30.14 crore year-over-year.
Why this matters
The company’s mobility segment remains a powerhouse, contributing Rs 366.35 crore to the quarterly revenue, up from Rs 240.02 crore. This segment is effectively offsetting the decline in the industrial business, which saw revenue drop to Rs 34.29 crore from Rs 46.46 crore.
Risks to watch
A key area of concern is the cash flow from operations, which turned negative at Rs (20.38) crore for the half-year. This was driven by a substantial increase in working capital, specifically a Rs 100.84 crore build-up in inventories and a Rs 78.35 crore rise in trade receivables. Investors should watch if these receivables are converted to cash in the coming quarters.
What to track next
Watch for management commentary on inventory turnover and the realization of trade receivables. Additionally, monitor the performance of the industrial segment to see if the recent revenue decline stabilizes.