BASML H1 FY26: Core PBT Turns Positive, Debt Falls

Bannari Amman Spinning Mills Ltd (BASML), a textile spinning company (CIN: L17111TZ1989PLC002476), reported standalone unaudited results for H1 FY26 ended September 30, 2025, indicating a turnaround in its core operations even as the company stayed in an investment-heavy phase.

Revenue in the half year was described as stable at around ₹445 crore, while reported total profit declined year-on-year due to lower gains from discontinued operations. The company also highlighted a stronger balance sheet after raising money through a rights issue and reducing debt.

What BASML reported for H1 FY26

The key takeaway from the H1 FY26 update was the improvement in profitability from continuing operations. Continuing operations profit before tax (PBT) swung to a profit of ₹14.5 crore in H1 FY26, compared with a loss of ₹10.6 crore in the corresponding period a year earlier.

At the same time, overall year-on-year profit was lower because discontinued operations contributed less than the previous year. The update framed this as a change in mix rather than a deterioration in the operating business.

The company also stated that consolidated numbers were similar to standalone results, and that the consolidation includes subsidiary Bannari Infotech Pvt Ltd.

Core operations: swing in PBT and what drove it

BASML attributed the turnaround in continuing operations to cost efficiencies and working capital actions. The factors cited included lower employee costs and inventory drawdown.

The company also flagged sequential stability in Q2 as a sign that the improvement was not limited to a single quarter. While the update did not provide a full H1 segment split, it positioned the gains as coming from the core business rather than one-off items.

For investors tracking operating performance, this distinction mattered because the year-on-year decline in total profit was linked to discontinued operations, while the continuing operations line improved meaningfully.

Cash flow improved sharply in H1 FY26

Alongside the operating profit swing, BASML reported stronger cash generation. Operating cash flow (OCF) was ₹24.3 crore in H1 FY26, up from ₹4.1 crore in the year-ago period.

The company linked the improvement to receivables collection and working capital optimisation. Receivables were reported to be down by ₹16 crore, which supported cash conversion in the half year.

In a capital-intensive business such as spinning, the OCF trend is closely watched because it influences how much of ongoing capex can be funded internally versus through borrowings or equity.

Rights issue and balance sheet actions

BASML said its balance sheet strengthened through around ₹40 crore of rights issue proceeds. The update also stated that debt reduced following the equity infusion.

This combination is relevant because it implies the company used fresh equity to support funding needs and ease leverage pressures during a period of heavy capital expenditure. The note did not quantify the exact debt reduction in the excerpt provided, but it explicitly linked the rights proceeds to improved balance sheet strength.

How FY26 quarterly performance looked in reported data

Separate quarterly disclosures for the March 2026 quarter showed modest revenue softness year-on-year and lower net profit.

Reported consolidated quarterly numbers for March 2026 included:

• Net sales of ₹220.71 crore, down 2.13% from ₹225.52 crore in March 2025
• Net profit of ₹1.38 crore, down 25.26% from ₹1.84 crore in March 2025
• EBITDA of ₹21.29 crore, down 2.87% from ₹21.92 crore in March 2025
• EPS of ₹0.16 in March 2026 versus ₹0.28 in March 2025

FY26 full-year snapshot from audited results

Audited full-year figures for the year ended March 31, 2026 showed revenue broadly steady but profitability improving. In the FY26 highlights shared, revenue from operations was ₹870.32 crore (₹87,032.40 lakh) versus ₹887.36 crore (₹88,735.86 lakh) in FY25.

FY26 profit before tax was ₹23.67 crore (₹2,366.77 lakh), compared with ₹1.78 crore (₹178.04 lakh) in FY25. FY26 net profit was ₹16.90 crore (₹1,689.74 lakh), compared with a net loss of ₹1.22 crore (₹121.92 lakh) in FY25.

The same FY26 highlights also cited basic EPS of ₹2.17 (standalone) and ₹1.92 (consolidated).

Key numbers table

Stock and market context from the data points shared

The stock was cited at a CMP of ₹27 on NSE in the dataset. Another data point said BASML shares closed at ₹24.92 on June 1, 2026 (NSE), with returns of -19.20% over the last 6 months and -24.71% over the last 12 months.

These price and return figures sit alongside the company’s narrative of operational improvement and balance sheet strengthening, suggesting that the market had remained cautious despite the reported turnaround in continuing operations.

What to watch next: Q1 FY27 timeline and estimates

Market participants are expecting BASML to announce its Q1 FY27 (April to June 2026) results in July or August 2026, with the results date described as to be decided.

A summary shared alongside the results discussion indicated an estimated Q1 FY27 revenue range of ₹204-234 crore and an estimated PAT of ₹6-8 crore. It also listed a 12-month target range of ₹28-32, and separately referenced an analyst target range of ₹26-30.

Analysis: why the H1 FY26 update matters

The most material change in the H1 FY26 narrative was the swing in continuing operations PBT to ₹14.5 crore profit, supported by higher operating cash flow of ₹24.3 crore. In a spinning business, this combination typically indicates that cost control and working capital discipline are translating into measurable operating outcomes.

At the same time, the decline in total profit year-on-year due to lower discontinued operations gains highlights why investors often separate core operating performance from non-recurring or non-core contributions. BASML’s update explicitly framed the period as a core turnaround, rather than a headline profit story.

The balance sheet element also matters. The ~₹40 crore rights issue proceeds and stated debt reduction reduce pressure during heavy capex, and can influence future interest costs and financial flexibility.

Conclusion

BASML’s H1 FY26 unaudited update pointed to stable revenue near ₹445 crore, a sharp improvement in continuing operations profitability, and much stronger operating cash flow, alongside a rights issue-led balance sheet strengthening. The next key marker for investors is the timing and outcome of the Q1 FY27 results expected in July or August 2026, which should add clarity on whether the operational momentum is sustaining into FY27.