Storage Technologies and Automation Ltd's Mixed H1 FY26 Performance; Revenue Grows 7.9% YoY, Profitability Drops
Storage Technologies and Automation Ltd (STAL) reported a mixed performance for the first half of FY26. The company's revenue from operations grew by 7.9% YoY to ₹470.53 million, driven by ongoing project execution across racking, structural, and automation segments. However, profitability was significantly impacted due to delayed project execution, prolonged deployment of manpower and equipment, and an unusually high cost base. Several large installation jobs ran beyond their original timelines, pushing both revenue recognition and margin contribution into the second half of the year. Despite these temporary pressures, the underlying business fundamentals remain strong, and management expects performance to improve materially in H2 FY26 as execution accelerates.
Key Highlights
- Revenue from operations for H1 FY26 stood at ₹470.53 million, an increase of 7.9% YoY.
- Gross Profit rose 11.8% YoY to ₹137.01 million, with gross margins improving to 29.1% from 28.1% in H1 FY25.
- EBITDA dropped to ₹3.25 million due to temporary cost escalations.
- EBITDA margin stood at 0.7%, versus 9.3% last year.
- The Company expects a meaningful recovery in profitability in H2 as delayed billing milestones are completed and temporary cost pressures subside.