Shanthi Gears profit fell 27% year on year to ₹15.7 crore in the quarter ended September 30, 2026, even as the industrial gear manufacturer recorded its highest-ever quarterly order bookings. Revenue from operations declined 3% to ₹128 crore in the second quarter of FY27.

Shanthi Gears profit declines as expenses weigh

Net profit decreased from ₹21.5 crore in the year-earlier quarter, while revenue fell from ₹132 crore. Higher depreciation and amortisation, together with increased other expenses, weighed on the bottom line, leaving profit falling faster than sales.

The Coimbatore-based company is a subsidiary of Tube Investments of India. Its gear and gearbox product range includes solutions for industrial applications and specialized gear reconditioning services.

Shanthi Gears reported a return on average invested capital of 25% for Q2 FY27. Free cash flow was negative at ₹1.3 crore, distinguishing cash generation during the quarter from its positive accounting profit.

Record order bookings contrast with weaker sales

Quarterly order bookings reached ₹192 crore, up 37% from a year earlier. The unexecuted order book stood at ₹436 crore on September 30, 2026.

The stronger order intake contrasts with the decline in quarterly revenue: bookings represent customer work secured, rather than sales already recognized. The available figures do not specify when the outstanding orders will convert into revenue.

Shanthi Gears shares closed on the NSE at ₹476 on October 26, 2026, down ₹7.75, or 1.60%, from the previous close.

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