Barflex revenue doubles but group posts Rs 1.33 crore loss

Barflex Polyfilms Limited reported a Rs 1.33 crore consolidated loss attributable to the group for the half year ended September 30, 2026, despite revenue from operations rising to Rs 118.30 crore from Rs 53.45 crore a year earlier. Total expenses increased to Rs 119.38 crore, while profit before tax fell to Rs 46.18 lakh.

Why did Barflex report a loss despite higher revenue?

Barflex reported a group loss because expenses rose faster than revenue in the half year ended September 30, 2026. Revenue from operations increased by Rs 64.85 crore from the corresponding September 2025 half year, but total expenses increased by Rs 69.51 crore, reducing profit before tax to Rs 46.18 lakh from Rs 4.23 crore.

The loss reversed a Rs 3.04 crore profit attributable to the group in the September 2025 half year and followed a Rs 87.60 lakh group profit in the half year ended March 31, 2026. Non-annualised basic and diluted earnings per share, or EPS, were a loss of Rs 0.54 for September 2026, compared with earnings of Rs 1.23 a year earlier and Rs 0.96 in March 2026.

Which costs changed in Barflex's September 2026 half year?

Barflex's materials-consumed expense rose to Rs 111.70 crore in the September 2026 half year from Rs 39.04 crore a year earlier, an increase of Rs 72.66 crore. Employee-benefit expense increased to Rs 8.41 crore from Rs 3.71 crore, while other expenses rose to Rs 14.56 crore from Rs 7.10 crore.

Depreciation and amortisation increased to Rs 2.01 crore from Rs 37.40 lakh, and finance costs rose to Rs 1.02 crore from Rs 12.03 lakh in the September 2025 half year. The inventory-change line reduced expenses by Rs 18.33 crore, compared with reductions of Rs 47.87 lakh a year earlier and Rs 96.67 lakh in the March 2026 half year.

The financial-results table records current tax expense of Rs 80.06 crore and deferred tax expense of Rs 89.48 lakh for the September 2026 half year, alongside the Rs 1.33 crore post-tax loss from continuing operations. Barflex did not provide a note explaining the current-tax figure or a tax reconciliation in the supplied filing.

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

Barflex's consolidated balance-sheet total increased to Rs 180.48 crore at September 30, 2026 from Rs 135.74 crore at March 31, 2026. Tangible assets rose to Rs 53.82 crore from Rs 32.43 crore, inventories increased to Rs 36.70 crore from Rs 18.81 crore, and trade receivables rose to Rs 46.41 crore from Rs 26.06 crore.

Borrowings and trade payables also increased over the six-month period. Long-term borrowings rose to Rs 35.42 crore from Rs 18.24 crore, short-term borrowings increased to Rs 12.34 crore from Rs 1.51 crore, and trade payables other than those due to micro and small enterprises increased to Rs 28.88 crore from Rs 6.96 crore.

What does Barflex's cash-flow statement show?

Barflex used Rs 17.06 crore in operating activities during the half year ended September 30, 2026, compared with net operating cash generation of Rs 4.55 crore in the year ended March 31, 2026. Operating profit before working-capital changes was Rs 3.22 crore, but trade receivables increased by Rs 20.35 crore and inventories increased by Rs 17.90 crore.

An increase of Rs 20.96 crore in trade payables partly offset those working-capital movements. Investing activities used Rs 4.02 crore, including Rs 8.23 crore of fixed-asset purchases and Rs 8.26 crore of increases in non-current investments, while financing activities generated Rs 23.19 crore, including Rs 28.02 crore of net borrowing proceeds.

The cash-flow statement reported Rs 4.08 crore of cash and cash equivalents at September 30, 2026, compared with Rs 1.97 crore at the start of the year. The consolidated balance sheet separately listed cash and cash equivalents of Rs 2.58 crore at the same date, and Barflex did not explain the difference between the two figures.

What changed in Barflex's consolidated group?

Barflex's reviewed consolidated results include Barflex Flexibles Private Limited, Barflex Flexpack Private Limited and Rohit Polyfoams Private Limited. Rohit Polyfoams was incorporated during the current financial year as a wholly owned subsidiary, so no comparative figures for the corresponding earlier period were presented for that entity.

The independent auditor reviewed the consolidated results for the half year ended September 30, 2026 under Standard on Review Engagements 2410. The auditor reported that nothing had come to its attention to indicate a material misstatement, while noting that certain subsidiary financial information had not been reviewed by those subsidiaries' auditors and was certified by management.

Conclusion

Barflex recorded revenue growth from Rs 53.45 crore to Rs 118.30 crore in the September 2026 half year, but the increase in materials, employee costs, depreciation, finance costs and other expenses left profit before tax at Rs 46.18 lakh and resulted in a Rs 1.33 crore group loss. The balance sheet also showed higher inventories, receivables, borrowings and trade payables than at March 31, 2026.

The next results will show whether receivables of Rs 46.41 crore and inventories of Rs 36.70 crore convert into operating cash after the Rs 17.06 crore operating cash outflow in the reported half year. Comparability will also remain limited for Rohit Polyfoams because Barflex disclosed no corresponding prior-period figures for the newly incorporated wholly owned subsidiary.