Amarnath Securities posts Rs 91,000 profit with nil revenue

Amarnath Securities Limited posted a profit of Rs 91,000 for the half year ended September 30, 2026 despite reporting nil revenue from operations, with total income of Rs 21.87 lakh consisting of other income and total expenses reaching Rs 20.96 lakh. The company disclosed a Rs 6.87 lakh related-party loan write-back in the September quarter.

How did Amarnath Securities report profit without operating revenue?

Amarnath Securities reported nil revenue from operations in the half year ended September 30, 2026, compared with Rs 19.04 lakh in the corresponding half year ended September 30, 2025. The prior-year figure comprised Rs 18.99 lakh of interest income and Rs 0.05 lakh of dividend income, while neither income stream was reported in the latest half-year results.

Amarnath Securities instead recorded Rs 21.87 lakh of other income for the latest half year, against nil other income in the comparable 2025 period. Other income was Rs 15 lakh in the quarter ended June 30, 2026 and Rs 6.87 lakh in the quarter ended September 30, 2026, bringing total income to Rs 21.87 lakh compared with Rs 19.04 lakh a year earlier.

Amarnath Securities generated Rs 2.83 lakh more total income year on year, but profit fell by Rs 7.32 lakh because total expenses increased by Rs 13.19 lakh. Profit before tax was Rs 91,000, against Rs 11.27 lakh in the previous first half; the earlier period also included a Rs 3.04 lakh current-tax charge, whereas no tax expense was reported for the latest half year.

What was the related-party loan write-back at Amarnath Securities?

Amarnath Securities said it recognised Rs 6.87 lakh during the September 2026 quarter from the write-back of a loan amount payable to a related party, based on management's decision. The quarterly income statement records Rs 6.87 lakh as other income, while the note describes the amount as revenue recognised from the write-back.

The write-back equalled the entire Rs 6.87 lakh of total income reported for the quarter ended September 30, 2026 because operating revenue was nil. Quarterly expenses of Rs 6.49 lakh left profit before tax and profit for the period of Rs 38,000, with no tax expense shown in the quarterly statement.

The June 2026 quarter also had nil operating revenue, but Amarnath Securities reported Rs 15 lakh of other income and Rs 14.47 lakh of expenses, producing profit of Rs 53,000. Both quarters therefore relied on other income rather than reported interest or dividend income, while the related-party write-back was specifically disclosed only for the September quarter.

For the year ended March 31, 2026, Amarnath Securities reported Rs 80.68 lakh of other income and Rs 33,000 of revenue from operations. The annual result was a loss of Rs 5.2091 crore after total expenses of Rs 6.0192 crore, including a Rs 5.3952 crore loss on derecognition of financial assets measured at amortised cost.

Which expenses reduced Amarnath Securities' first-half profit?

Amarnath Securities' total expenses rose to Rs 20.96 lakh in the half year ended September 30, 2026 from Rs 7.77 lakh a year earlier. Other expenses were the largest expense line at Rs 13.46 lakh, up from Rs 6.06 lakh, an increase of Rs 7.40 lakh.

Employee-benefit expense increased to Rs 4.35 lakh from Rs 23,000, while fees and commission expense was Rs 3.05 lakh compared with nil in the year-earlier half. Finance cost declined to Rs 8,000 from Rs 1.48 lakh, and depreciation, amortisation and impairment were Rs 2,000 against nil in the corresponding prior-year period.

The September quarter included Rs 2.62 lakh of other expenses, below Rs 10.84 lakh in the June quarter. Employee-benefit expense was Rs 2.05 lakh in September against Rs 2.30 lakh in June, while fees and commission expense increased to Rs 1.73 lakh from Rs 1.32 lakh; total quarterly expenses consequently declined to Rs 6.49 lakh from Rs 14.47 lakh.

Amarnath Securities reported basic and diluted earnings per share of Rs 0.03 for the half year ended September 30, 2026, down from Rs 0.27 a year earlier. Paid-up equity share capital was unchanged at Rs 3.0002 crore, with a face value of Rs 10 per share.

What do Amarnath Securities' balance sheet and cash flows show?

Amarnath Securities reported total assets of Rs 27.10 lakh at September 30, 2026, compared with Rs 6.49 lakh at March 31, 2026. Financial assets rose to Rs 27 lakh from Rs 6.49 lakh, chiefly as loans increased to Rs 20.89 lakh from Rs 2.50 lakh and other financial assets stood at Rs 2.81 lakh.

Cash and cash equivalents were Rs 2.16 lakh on the September 30 balance sheet, compared with Rs 3.48 lakh at March 31. The cash-flow statement reported cash and bank equivalents of Rs 2.18 lakh at September 30, including Rs 6,000 cash on hand and Rs 2.12 lakh in current accounts, compared with Rs 3.48 lakh at the beginning of the year.

Total liabilities increased to Rs 99.24 lakh from Rs 79.53 lakh during the six months. Financial liabilities were Rs 79.83 lakh, including Rs 78.55 lakh of borrowings other than debt securities, while provisions were Rs 19.41 lakh; total equity remained negative at Rs 72.13 lakh compared with negative Rs 73.04 lakh at March 31.

Operating activities used Rs 23.70 lakh of cash in the half year, including a Rs 18.39 lakh increase in loans and advances and a Rs 3.11 lakh fall in provisions. Financing activities generated Rs 22.51 lakh, comprising Rs 22.60 lakh of short-term or long-term borrowing less Rs 8,000 of finance cost, resulting in a Rs 1.31 lakh net decline in cash and cash equivalents.

What disclosures remain unresolved for Amarnath Securities?

Amarnath Securities said its entire net worth had been eroded in the notes to its unaudited September 2026 results. The balance sheet reported negative total equity of Rs 72.13 lakh, after other equity improved to negative Rs 3.7215 crore at September 30 from negative Rs 3.7306 crore at March 31.

Amarnath Securities also said it had yet to make an application or intimation to the Reserve Bank of India for approval related to a change in management. As of November 14, 2026, the date on which the board approved the financial results, the Reserve Bank of India approval remained pending.

Amarnath Securities operates in one segment, Finance and Investment, and therefore did not provide segment reporting. The company also reported no subsidiary or associate, while its statutory auditors carried out a limited review of the September 2026 financial results.

Conclusion

Amarnath Securities' Rs 91,000 first-half profit did not arise from operating revenue, which declined from Rs 19.04 lakh in the prior-year period to nil. Other income of Rs 21.87 lakh, including the Rs 6.87 lakh related-party loan write-back disclosed for the September quarter, was largely absorbed by Rs 20.96 lakh of expenses.

The next disclosed matters to watch are the pending Reserve Bank of India approval for the management change and the proposed preferential issue to convert Rs 86.05910 lakh of unsecured loans into equity shares. Amarnath Securities has proposed issuing up to 5,00,000 shares to 14 allottees, but said the final issue price, number of shares and post-issue shareholding will be recalculated under applicable pricing requirements.