Balgopal posts Rs 2.26 crore H1 profit despite Q2 loss

Balgopal Commercial Limited reported consolidated profit of Rs 2.26 crore for the half year ended September 30, 2026, despite a Rs 2.89 crore loss in the September quarter. Profit of Rs 5.15 crore in the June quarter kept the six-month result positive, while inventories rose to Rs 74.12 crore and operating cash outflow reached Rs 53.74 crore.

How did Balgopal perform in the September quarter and first half?

Balgopal recorded a consolidated loss after tax of Rs 2.89 crore for the quarter ended September 30, 2026, compared with profit after tax of Rs 5.15 crore in the quarter ended June 30, 2026. The September-quarter loss was also larger than the Rs 8.89 lakh loss reported for the quarter ended September 30, 2025.

For the six months ended September 30, 2026, Balgopal reported profit after tax of Rs 2.26 crore, up from Rs 1.58 crore in the corresponding six months of 2025. Profit before tax increased to Rs 2.87 crore from Rs 1.95 crore. Basic earnings per equity share were Rs 1.01 and diluted earnings per share were Rs 0.96 for the latest half year; the company said these figures were not annualised.

The June-quarter profit more than offset the September-quarter loss in the six-month result. Total income moved from Rs 8.83 crore in June to negative Rs 88.09 lakh in September, producing half-year total income of Rs 5.95 crore. Balgopal identifies trading and construction as its business activities.

What changed between Balgopal's June and September results?

Balgopal's quarterly profit after tax changed by Rs 8.04 crore between June and September, from a Rs 5.15 crore profit to a Rs 2.89 crore loss. Other income changed from Rs 5.83 crore in June to negative Rs 2.18 crore in September, according to the consolidated results.

Total expenses rose to Rs 2.28 crore in the September quarter from Rs 37.63 lakh in June. Employee-benefit expense declined to Rs 30.23 lakh from Rs 42.75 lakh, while changes in inventories of finished goods, work in progress and stock-in-trade were negative Rs 10.21 crore in September and negative Rs 25.62 crore in June.

The September-quarter statement included a negative exceptional item of Rs 3.16 crore, compared with a positive exceptional item of Rs 9.04 crore in June. Exceptional items totalled Rs 2.80 crore for the six months. Balgopal said the current-year tax provision will be determined and recorded at the end of the financial year.

How did Balgopal's balance sheet change by September 2026?

Balgopal's consolidated total assets stood at Rs 98.14 crore at September 30, 2026, compared with Rs 96.57 crore at March 31, 2026. Inventories were the largest stated movement, increasing by Rs 35.83 crore to Rs 74.12 crore, while non-current trade receivables declined to Rs 7.54 crore from Rs 45.31 crore.

Total equity increased to Rs 69.06 crore from Rs 56.28 crore over the six months. Equity share capital rose to Rs 23.25 crore from Rs 20.91 crore and other equity increased to Rs 45.81 crore from Rs 35.37 crore. Non-current liabilities fell to Rs 14.05 crore from Rs 24.76 crore.

Cash and cash equivalents were Rs 1.19 crore at September 30, down from Rs 1.60 crore at March 31. Current borrowings rose to Rs 2.66 crore from Rs 21.31 lakh, while trade payables increased to Rs 7.58 crore from Rs 1.45 crore. These movements occurred during the same six months as the inventory increase.

Why did Balgopal report negative operating cash flow?

Balgopal used Rs 53.74 crore in operating activities during the six months ended September 30, 2026, compared with an outflow of Rs 17.86 crore in the corresponding 2025 period. Operating loss before working-capital changes was Rs 1.78 crore, against a loss of Rs 65.16 lakh a year earlier.

The cash-flow statement recorded a Rs 35.84 crore inventory increase as the largest working-capital use of cash, compared with an increase of Rs 4.65 crore in the prior-year half. Other financial assets increased by Rs 2.47 crore and short-term loans and advances increased by Rs 48.90 lakh. A Rs 6.13 crore increase in other current liabilities partly offset these cash uses.

Investing activities generated Rs 41.12 crore in the latest half year, compared with Rs 7.02 crore in the prior-year period. The statement included Rs 41.59 crore from sale or purchase of investments. Financing activities generated Rs 12.21 crore, including Rs 2.34 crore from equity-share issuance and Rs 8.18 crore from adjustment of share-warrant money against securities premium.

What did Balgopal's review report and segment disclosure say?

Balgopal's consolidated unaudited results received a limited review from Arvind Baid & Associates, which said nothing had come to its attention to indicate that the statement failed to meet applicable disclosure requirements or contained a material misstatement. The review followed Standard on Review Engagements 2410 and did not provide an audit opinion.

The auditor did not review interim information for Dreamax Realtors, a partnership firm in the group, which reported nil revenue and a Rs 17,800 loss before consolidation adjustments for the September quarter. The auditor said the information was not material to the group and did not modify its conclusion in relation to reliance on management-certified information.

Balgopal said its chief operating decision maker does not review trading and construction activities separately, so it did not disclose separate segment performance. The board reviewed, approved and took the unaudited results on record on November 13, 2026.

Conclusion

Balgopal's Rs 2.26 crore first-half profit was higher than the Rs 1.58 crore reported a year earlier, but the result depended on the June-quarter profit offsetting a September-quarter loss. The period also paired a Rs 35.83 crore rise in inventories with Rs 53.74 crore of operating cash outflow and lower cash and cash equivalents of Rs 1.19 crore.

The next disclosed accounting item is the determination and recording of the current-year tax provision at the end of the financial year. Subsequent results will show whether the inventory balance of Rs 74.12 crore, current borrowings of Rs 2.66 crore and operating cash flow change after September 2026.