Bhagawati Oxygen Limited returns to profit in September quarter

Bhagawati Oxygen Limited reported a Rs 4.61 lakh net profit for the quarter ended 30 September 2026, reversing a Rs 32.94 lakh loss in the June quarter, but its first-half net result remained a Rs 28.33 lakh loss. The six-month outcome reflected a Rs 68.56 lakh loss in the gases segment.

Why did Bhagawati Oxygen return to profit in September 2026?

Bhagawati Oxygen returned to profit because total income of Rs 53.91 lakh exceeded total expenses of Rs 48.90 lakh in the quarter ended 30 September 2026. This resulted in profit before tax of Rs 5.01 lakh and net profit of Rs 4.61 lakh after a Rs 0.40 lakh deferred-tax charge.

The September result contrasted with the quarter ended 30 June 2026, when total income was Rs 20.86 lakh and expenses were Rs 58.40 lakh, producing a Rs 37.54 lakh loss before tax and a Rs 32.94 lakh net loss. Total expenses fell by Rs 9.50 lakh sequentially, led by other expenses declining to Rs 24.22 lakh from Rs 33.35 lakh.

The recovery was not a year-on-year increase. Total income was Rs 59.39 lakh in the quarter ended 30 September 2025, compared with Rs 53.91 lakh a year later, while net profit declined from Rs 11.25 lakh to Rs 4.61 lakh. Basic and diluted earnings per share, or EPS, were Rs 0.20 in September 2026, against a loss per share of Rs 1.42 in June 2026 and EPS of Rs 0.49 a year earlier.

How did Bhagawati Oxygen perform in the first half of 2026-27?

Bhagawati Oxygen recorded a Rs 28.33 lakh net loss for the half year ended 30 September 2026, compared with a Rs 7.98 lakh net profit in the corresponding 2025 period. Total income fell to Rs 74.77 lakh from Rs 101.60 lakh, while total expenses increased to Rs 107.30 lakh from Rs 92.61 lakh.

The resulting pre-tax loss was Rs 32.53 lakh, against pre-tax profit of Rs 8.99 lakh in the half year ended 30 September 2025. A deferred-tax credit of Rs 4.20 lakh reduced the reported six-month net loss to Rs 28.33 lakh; the corresponding prior-year period had a deferred-tax expense of Rs 1.01 lakh.

The first-half loss reflects the uneven quarterly pattern. The Rs 4.61 lakh September-quarter profit did not offset the Rs 32.94 lakh loss in the June 2026 quarter. The filing reported no exceptional items in either quarter, so the reversal to quarterly profitability came within the reported income, cost and tax lines.

Which business segment affected Bhagawati Oxygen’s result?

Bhagawati Oxygen’s power segment reported Rs 26.37 lakh of profit before tax and interest in the September 2026 quarter, while its gases segment reported a Rs 19.87 lakh loss on the same measure. The combined segment result was Rs 6.50 lakh before interest and other charges, followed by Rs 1.49 lakh of interest and other charges and a Rs 5.01 lakh pre-tax profit.

Gases improved from the June 2026 quarter but remained loss-making. Its segment loss narrowed from Rs 48.69 lakh in June to Rs 19.87 lakh in September, while reported gases revenue rose to Rs 24.43 lakh from Rs 7.66 lakh. Against the September 2025 quarter, gases revenue was lower than Rs 30.44 lakh and the segment loss was wider than Rs 16.18 lakh.

Power segment profit increased sequentially from Rs 12.72 lakh in June 2026 to Rs 26.37 lakh in September 2026, although it remained below Rs 28.95 lakh in the September 2025 quarter. Over the first half, power reported Rs 39.09 lakh of segment profit, compared with Rs 43.02 lakh a year earlier, while the gases loss widened to Rs 68.56 lakh from Rs 31.38 lakh.

What changed in Bhagawati Oxygen’s balance sheet and cash flow?

Bhagawati Oxygen reported total assets of Rs 10.13 crore at 30 September 2026, compared with Rs 10.39 crore at 31 March 2026. Total equity declined to Rs 6.97 crore from Rs 7.25 crore, consistent with the Rs 28.33 lakh first-half loss, while other equity fell to Rs 4.66 crore from Rs 4.94 crore.

Property, plant and equipment decreased to Rs 1.50 crore at 30 September from Rs 1.82 crore at 31 March, while investments rose to Rs 1.77 crore from Rs 1.70 crore. Current liabilities increased to Rs 2.70 crore from Rs 2.62 crore, even as current borrowings decreased to Rs 83.33 lakh from Rs 91.41 lakh.

The cash-flow statement reported Rs 19.76 lakh of net cash generated from operating activities for the period ended 30 September 2026, despite the Rs 32.53 lakh pre-tax loss. A Rs 30.01 lakh movement in financial and other assets and Rs 16.12 lakh from trade payables and other liabilities contributed to cash generation.

Investing activities used Rs 7.51 lakh, including Rs 7.12 lakh for investments, and financing activities used Rs 13.06 lakh, including Rs 9.96 lakh of borrowing repayment. Cash and cash equivalents therefore declined to Rs 1.44 lakh at 30 September 2026 from Rs 2.22 lakh at the beginning of the period.

Conclusion

Bhagawati Oxygen’s September-quarter profit shows that the Rs 32.94 lakh June loss was reversed at the quarterly level, with expenses falling to Rs 48.90 lakh and power reporting Rs 26.37 lakh of segment profit. However, the first-half result remained a Rs 28.33 lakh loss as gases reported a Rs 68.56 lakh segment loss, wider than the Rs 31.38 lakh loss in the corresponding prior-year period.

The next disclosed matter to watch is the arbitration concerning the minimum offtake guarantee linked to the gas-supply contract with Hindustan Copper Ltd, which expired on 31 October 2021 and was not renewed. Bhagawati Oxygen said the gas plant was closed and that the matter became sub judice, but disclosed neither the receivable amount nor a timetable or outcome for the arbitration.