Baroda Rayon September profit falls to Rs 63 lakh on tax

Baroda Rayon Corporation Limited reported net profit of Rs 63.42 lakh for the quarter ended September 30, 2026, versus Rs 18.47 crore in the June quarter, after recording a Rs 4.80 crore current-tax expense and no exceptional item; June included a Rs 12 crore exceptional item.

Why did Baroda Rayon’s September-quarter profit fall?

Baroda Rayon’s September-quarter profit fell because a Rs 4.80 crore current-tax expense and the absence of exceptional income reduced profit after tax to Rs 63.42 lakh. Profit before tax was Rs 5.43 crore, compared with Rs 18.47 crore of net profit in the quarter ended June 30, 2026, and Rs 6.04 crore in the quarter ended September 30, 2025.

The June 2026 quarter included a Rs 12 crore exceptional item, while no exceptional item was reported for the September 2026 quarter. The year-earlier September quarter included a Rs 1.51 crore exceptional item and did not show a current-tax charge, making both the sequential and year-on-year net-profit comparisons affected by these items.

Baroda Rayon’s profit before exceptional items and tax was Rs 5.43 crore in the September quarter, down from Rs 6.47 crore in June but above Rs 4.53 crore a year earlier. The board approved the unaudited standalone results on November 6, 2026, after the audit committee reviewed and recommended them.

How did Baroda Rayon’s revenue change in the September quarter?

Baroda Rayon reported total revenue of Rs 17.09 crore for the quarter ended September 30, 2026, down from Rs 18.88 crore in June but up from Rs 13.57 crore a year earlier. Revenue from operations was Rs 15.51 crore, compared with Rs 17.98 crore in June and Rs 13.06 crore in the September 2025 quarter.

Other income was Rs 1.58 crore in the September quarter, compared with Rs 90.09 lakh in June and Rs 51.36 lakh a year earlier. Total expenses declined to Rs 11.66 crore from Rs 12.41 crore in June, but were higher than Rs 9.05 crore in the September 2025 quarter.

The fall in total revenue between the two latest quarters was Rs 1.79 crore, while profit before exceptional items and tax decreased by Rs 1.04 crore. This comparison shows that the pre-exceptional, pre-tax result was lower sequentially before the separate Rs 4.80 crore tax expense was recognised.

Which Baroda Rayon segment produced the quarterly revenue?

Baroda Rayon’s real-estate segment produced Rs 15.76 crore of September-quarter segment revenue and a Rs 4.58 crore segment result. The company defines this segment as sales of plots of land and industrial units; its revenue was Rs 18.13 crore in June and Rs 13.29 crore in the September 2025 quarter.

The textiles segment reported Rs 1.33 crore of revenue and a Rs 1.33 crore segment result for the September quarter, compared with Rs 75.16 lakh in the June quarter and Rs 28.14 lakh a year earlier. The segment schedule therefore reported higher textiles revenue than in both comparative quarters.

Baroda Rayon nevertheless states that the entire operational activities of the textiles segment have been at a standstill since August 2008. Management said the company is searching for new avenues to restart those activities, while the reported segment figures continued to include textiles revenue and results.

Combined segment results before unallocable finance costs, exceptional items and tax were Rs 5.91 crore, compared with Rs 6.53 crore in June and Rs 4.95 crore a year earlier. The segment schedule deducts finance cost of Rs 47.92 lakh and the Rs 4.80 crore tax charge from the September-quarter result, with no exceptional item added.

What do Baroda Rayon’s half-year figures show?

Baroda Rayon reported net profit of Rs 19.11 crore for the half year ended September 30, 2026, compared with Rs 13.14 crore for the corresponding prior-year half year. The latest six-month figure included a Rs 12 crore exceptional item and a Rs 4.80 crore current-tax expense, while profit before tax was Rs 23.91 crore.

The half-year segment schedule reported total revenue of Rs 35.98 crore, comprising Rs 33.89 crore from real estate and Rs 2.08 crore from textiles. The corresponding prior-year half-year total segment revenue was Rs 36.13 crore, with real estate at Rs 35.73 crore and textiles at Rs 39.93 lakh.

Combined segment results were Rs 12.44 crore in the half year ended September 30, 2026, compared with Rs 12.55 crore in the prior-year period. Real estate generated a Rs 10.36 crore segment result, while textiles accounted for Rs 2.08 crore, according to the standalone segment statement.

What changed in Baroda Rayon’s balance sheet by September?

Baroda Rayon’s total assets stood at Rs 791.36 crore on September 30, 2026, compared with Rs 732.29 crore on March 31, 2026. Inventories increased to Rs 663.61 crore from Rs 642.23 crore, while cash and cash equivalents rose to Rs 2.18 crore from Rs 9.01 lakh.

Total equity was Rs 413.62 crore at September-end, compared with Rs 394.51 crore at the March 2026 year-end. Other equity increased to Rs 390.71 crore from Rs 371.60 crore, while paid-up equity share capital remained Rs 22.91 crore.

Non-current borrowings were Rs 171.83 crore at September 30, 2026, up from Rs 137.32 crore at March 31, 2026. Current borrowings were Rs 41.21 crore, compared with Rs 38.96 crore, taking total borrowings to Rs 213.04 crore from Rs 176.28 crore.

Conclusion

Baroda Rayon’s September-quarter net profit of Rs 63.42 lakh reflected a different exceptional-item and tax mix from the comparative periods. Revenue of Rs 17.09 crore and profit before exceptional items and tax of Rs 5.43 crore remained positive, but the Rs 4.80 crore current-tax charge and no exceptional income reduced the reported bottom line.

The disclosed matter to watch next is management’s search for avenues to restart the textiles segment, whose operations have been at a standstill since August 2008. Readers can also track real-estate revenue, which was Rs 15.76 crore in the September quarter, and the movement in inventories and borrowings, which stood at Rs 663.61 crore and Rs 213.04 crore respectively at September-end.