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Danube Industries Posts 11.8% FY26 Profit Growth to ₹1.36 Cr; Q4 Hit by Sharp 45% QoQ Dip

Alex Smith

Alex Smith

2 hours ago

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Danube Industries Posts 11.8% FY26 Profit Growth to ₹1.36 Cr; Q4 Hit by Sharp 45% QoQ Dip

Synopsis: Danube Industries Limited reported a stable full-year FY26 performance with net profit rising 11.8% to ₹1.36 crore and revenue from operations growing 5% to ₹115.16 crore. However, Q4 FY26 showed a sharp sequential decline, with net profit slowing down to ₹0.26 crore from ₹0.48 crore in the preceding quarter.

Danube Industries Limited, an Ahmedabad-based IT hardware distributor and trading solutions manufacturer, held its Board of Directors meeting on May 18, 2026, approving the Audited Standalone Financial Results for the quarter and year ended March 31, 2026. The results were filed with the BSE on the same date, with statutory auditors M/s. U B G & Company, Chartered Accountants, issuing an unmodified (clean) audit opinion.

Q4 FY26 Financial Performance

For Q4 FY26, Danube Industries reported revenue from operations of ₹33.51 crore, down from ₹37.24 crore in Q4 FY25, a year-on-year decline of approximately 10%. Including other income of ₹1.74 crore, total income for the quarter stood at ₹35.25 crore.

Total expenses for Q4 came in at ₹34.87 crore. The core cost component was driven by raw material procurement and direct trading expenses of ₹33.51 crore, which was closely balanced alongside a net change in inventory valuations. Finance costs for the quarter were recorded at ₹0.22 crore, while depreciation stood at a marginal ₹0.03 crore.

Profit before tax for Q4 FY26 was ₹0.38 crore, down from ₹0.80 crore in Q4 FY25, a year-on-year decline of approximately 52.4%. After tax of ₹0.12 crore, net profit for Q4 FY26 came in at ₹0.26 crore, compared to ₹0.60 crore in Q4 FY25, a steep decline of approximately 56.4% year-on-year.

Sequentially, however, the decline is also a notable Q3 FY26 had recorded a net profit of ₹0.48 crore, making Q4 a 45% sequential drop, a trend investors will want management to address in coming quarters.

Full Year FY26 — The Brighter Picture

Despite the weak Q4, the full-year FY26 numbers tell a more encouraging story. Revenue from operations for FY26 stood at ₹115.16 crore, up approximately 5% from ₹109.66 crore in FY25.

Including other income, total income for FY26 was ₹116.92 crore versus ₹109.67 crore in FY25. Total expenses for FY26 were ₹115.07 crore against ₹108.00 crore in FY25.

Profit before tax for FY26 came in at ₹1.85 crore, up from ₹1.66 crore in FY25—an improvement of approximately 11.4%. Net profit for FY26 stood at ₹1.36 crore, up 11.8% from ₹1.22 crore in the prior year.

Reflecting the steady improvement in the company’s bottomline, the consolidated basic and diluted Earnings Per Share (EPS) for the full year FY26 expanded to ₹0.21, up from ₹0.19 in the previous fiscal year.

Balance Sheet and Cash Flow Highlights

As of March 31, 2026, total assets expanded significantly to ₹112.14 crore from ₹63.51 crore in FY25. This asset inflation was primarily driven by an increase in working capital allocation, including inventory holdings of ₹29.11 crore and a massive surge in outstanding trade receivables, which jumped to ₹71.45 crore from ₹31.93 crore in the previous year. Cash and cash equivalents remained tight at ₹0.14 crore.

Short-term borrowings rose sharply to ₹31.81 crore from ₹12.62 crore, and trade payables surged to ₹41.73 crore from ₹15.19 crore, indicating aggressive working capital utilization. Total equity increased to ₹35.63 crore from ₹34.27 crore

On the cash flow front, net cash from operating activities remained negative at ₹(16.89) crore for FY26, driven by a large increase in receivables and short-term loans. Net cash from financing activities was a robust ₹17.28 crore, primarily from short-term borrowings of ₹19.20 crore, helping fund the business expansion. Net increase in cash for the year was ₹0.10 crore, taking closing cash to ₹0.14 crore.

Share Price Movement

Shares of Danube Industries Limited were trading at ₹5.30 on May 19, 2026 (12:27 IST) on the BSE Limited, down ₹0.15 or 2.75% from the previous close of ₹5.45. The stock opened at ₹5.45 and moved between an intraday high of ₹5.67 and a low of ₹5.03, with a total market capitalization of around ₹48.22 crore and moderate trading activity during the session.

Company Overview

Danube Industries Limited, formerly known as Dwekam Industries Limited, is an Ahmedabad-based company engaged in manufacturing and trading operations. Registered since 1980, the company operates under Managing Director Meena Sunil Rajdev. Its registered office is at A-2101, Privilon, Behind Iscon Temple, Ambli-Bopal Road, S.G. Highway, Ahmedabad.

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