Art Nirman reports Rs 23.31 lakh pre-tax half-year loss

Art Nirman Limited reported an unaudited pre-tax loss of Rs 23.31 lakh for the half year ended 30 September 2026, against a pre-tax profit of Rs 36.13 lakh a year earlier, as total expenses of Rs 6.86 crore exceeded total income of Rs 6.63 crore.

Why did Art Nirman report a pre-tax loss for September 2026?

Art Nirman moved to a Rs 23.31 lakh loss before tax for the half year ended 30 September 2026 from a Rs 36.13 lakh profit before tax in the corresponding half of 2025. Total income declined to Rs 6.63 crore from Rs 8.42 crore, while total expenses fell to Rs 6.86 crore from Rs 8.06 crore.

Revenue from operations was Rs 6.40 crore for the September 2026 half year, down from Rs 8.25 crore in the September 2025 half year. Other income increased to Rs 23.06 lakh from Rs 16.89 lakh, but the increase did not offset the decline in operating revenue.

Art Nirman reported revenue from operations of Rs 4.28 crore in the quarter ended 30 September 2026, compared with Rs 2.11 crore in the June 2026 quarter and Rs 6.75 crore in the September 2025 quarter. Revenue therefore increased by Rs 2.17 crore sequentially, but remained below the previous year's September-quarter level.

The company reported only one operating segment, real estate, under Indian Accounting Standard 108. Its results cover operations in India, and the filing states that separate geographic disclosure was not required.

How did Art Nirman’s balance sheet change by September 2026?

Art Nirman’s total assets increased to Rs 156.80 crore at 30 September 2026 from Rs 142.37 crore at 31 March 2026, a rise of Rs 14.43 crore. Total equity and liabilities matched total assets at Rs 156.80 crore at the half-year date.

Inventories were Rs 96.66 crore at 30 September 2026, compared with Rs 75.41 crore at 31 March 2026. The Rs 21.25 crore increase was accompanied by cash and cash equivalents rising to Rs 4.00 crore from Rs 2.60 crore, while loans increased to Rs 5.29 crore from Rs 4.39 crore.

Property, plant and equipment stood at Rs 3.87 crore at 30 September 2026, down from Rs 4.11 crore at 31 March 2026. Other non-current assets were Rs 58.34 lakh, compared with Rs 57.87 lakh, and intangible assets under development were unchanged at Rs 51,000.

Equity was Rs 37.01 crore at 30 September 2026, down from Rs 37.24 crore at the preceding financial year-end. Equity share capital was unchanged at Rs 24.96 crore, while other equity decreased to Rs 12.05 crore from Rs 12.28 crore.

What drove Art Nirman’s operating cash outflow?

Art Nirman reported net cash used in operating activities of Rs 31.47 crore for the period ended 30 September 2026, compared with an operating outflow of Rs 7.30 crore for the year ended 31 March 2026. The half-year outflow included working-capital movements in addition to the Rs 23.31 lakh loss before tax.

The cash-flow statement records a Rs 21.25 crore increase in inventories during the period. It also shows an Rs 18.95 crore movement in financial assets, a Rs 21.25 crore movement in other assets, and a Rs 19.47 crore movement in other financial liabilities within working-capital adjustments.

Net cash used in investing activities was Rs 35.47 lakh for the period ended 30 September 2026. The investing section included a Rs 58.53 lakh movement in non-financial and financial assets and Rs 23.06 lakh of interest income.

The reported cash use in operations was substantially larger than the Rs 23.31 lakh pre-tax loss. This difference reflects the cash-flow statement’s working-capital adjustments, including inventory, financial assets, other assets, payables, liabilities and provisions.

How was Art Nirman’s cash outflow funded?

Art Nirman generated Rs 33.22 crore of net cash from financing activities in the period ended 30 September 2026. The principal disclosed financing movement was a Rs 33.29 crore net increase in current borrowings, while finance costs paid were Rs 6.74 lakh.

The financing inflow exceeded the combined Rs 31.47 crore operating outflow and Rs 35.47 lakh investing outflow. Cash and cash equivalents consequently rose by Rs 1.40 crore, from Rs 2.60 crore at the beginning of the period to Rs 4.00 crore at 30 September 2026.

Total liabilities were Rs 119.79 crore at 30 September 2026, compared with Rs 105.13 crore at 31 March 2026. The Rs 14.66 crore increase occurred during the same period in which the cash-flow statement reported the net rise in current borrowings and inventories increased by Rs 21.25 crore.

The financing cash-flow statement showed no proceeds from an issue of share capital for the September 2026 period. The unchanged Rs 24.96 crore equity share capital on the balance sheet is consistent with that disclosure.

What did Art Nirman’s board and reviewer say about the results?

Art Nirman’s audit committee and board reviewed and approved the unaudited standalone results on 5 November 2026. The board meeting began at 2:30 p.m. and concluded at 4:30 p.m., according to the company’s filing with the National Stock Exchange of India.

KDN & Associates LLP issued a limited review report dated 5 November 2026 under Standard on Review Engagements 2410. The reviewer said nothing had come to its attention to suggest the results failed to disclose required information or contained a material misstatement, while stating that a review is narrower in scope than an audit.

The results were prepared under Indian Accounting Standard 34, Interim Financial Reporting, as stated in the filing. The Rs 23.31 lakh pre-tax loss, Rs 156.80 crore total assets and Rs 4.00 crore closing cash balance are all standalone measures.

Art Nirman also disclosed an appeal against a goods and services tax order dated 29 August 2024. The filing says the state tax officer determined a total demand of Rs 1.54 crore under the order, while the company also disclosed a Rs 5.85 crore bank guarantee connected with its Nidhi Apartment redevelopment project.

Conclusion

Art Nirman’s half-year result shifted from a Rs 36.13 lakh pre-tax profit in the September 2025 half year to a Rs 23.31 lakh loss in the September 2026 half year, as revenue from operations fell by Rs 1.85 crore. At the same time, total assets rose by Rs 14.43 crore, led by a Rs 21.25 crore increase in inventories, while liabilities increased by Rs 14.66 crore.

The next reported periods will show whether the Rs 31.47 crore operating cash outflow and inventory build reverse or continue. The September 2026 period was funded by a Rs 33.29 crore net increase in current borrowings, and the company also has a disclosed appeal relating to the Rs 1.54 crore GST demand.