Chiraharit Limited H1 profit returns as revenue climbs 39%

Chiraharit Limited returned to consolidated profit of Rs 81.78 lakh in the half year (H1) ended 30 September 2026, against a Rs 1.3275 crore loss a year earlier, as revenue from operations rose 38.7% to Rs 27.1033 crore; operating activities nevertheless used Rs 3.3985 crore of cash.

How did Chiraharit’s H1 revenue and profit change?

Chiraharit’s consolidated revenue from operations increased to Rs 27.1033 crore in the half year ended 30 September 2026 from Rs 19.5407 crore in the corresponding 2025 half. Total income rose to Rs 27.1477 crore from Rs 19.5852 crore, with other income of Rs 4.42 lakh in the latest half and Rs 4.45 lakh a year earlier.

Profit before tax was Rs 1.1914 crore, reversing a pre-tax loss of Rs 1.1026 crore in H1 2025. After total tax expense of Rs 37.36 lakh, profit after tax attributable to the parent’s owners was Rs 81.78 lakh, compared with a Rs 1.3275 crore loss; basic and diluted earnings per share were Rs 0.15, against a loss of Rs 0.33.

What changed in Chiraharit’s costs and tax charge?

Chiraharit’s total expenses rose to Rs 25.9563 crore from Rs 20.6878 crore, but total income increased by Rs 7.5625 crore, exceeding the Rs 5.2685 crore increase in expenses. That movement coincided with the shift from a pre-tax loss in H1 2025 to a Rs 1.1914 crore pre-tax profit in H1 2026.

Material consumed rose to Rs 22.3447 crore from Rs 18.3852 crore, while other expenses increased to Rs 1.0747 crore from Rs 84.03 lakh. Employee benefit expense declined to Rs 3.0736 crore from Rs 3.1883 crore and finance costs fell to Rs 38.47 lakh from Rs 64.47 lakh. The inventory-change line was negative Rs 1.1165 crore, compared with negative Rs 2.55 crore in the prior-year half.

Chiraharit recorded current tax of Rs 34.07 lakh and deferred tax of Rs 3.29 lakh, taking total tax expense to Rs 37.36 lakh. The prior-year half had total tax expense of Rs 22.49 lakh despite its pre-tax loss. Profit attributable to the company’s shareholders was Rs 88 lakh, while non-controlling interest recorded a Rs 6.22 lakh loss.

Why did Chiraharit report negative operating cash flow?

Chiraharit used Rs 3.3985 crore in operating activities because working-capital movements outweighed Rs 1.727 crore of operating profit before those movements. Cash generated from operations before tax was negative Rs 3.0578 crore, and net income taxes paid were Rs 34.07 lakh.

The cash-flow statement shows a Rs 2.385 crore decrease in trade payables, a Rs 1.2542 crore increase in short-term loans and advances, and a Rs 1.1165 crore inventory increase. Other current assets increased by Rs 91.86 lakh. These movements were partly offset by a Rs 54.35 lakh decrease in trade receivables and a Rs 52.78 lakh increase in other current liabilities.

The filing compares the latest half-year cash flow with the audited year ended 31 March 2026 rather than with H1 2025. Operating activities generated Rs 2.1716 crore in that full year, compared with the Rs 3.3985 crore outflow in H1 2026, so the disclosed periods are not like-for-like.

What happened to Chiraharit’s cash and borrowings?

Chiraharit’s cash and cash equivalents fell by Rs 5.3482 crore during H1 2026 to Rs 5.7654 crore at 30 September 2026, from Rs 11.1136 crore at the beginning of the period. The closing balance included Rs 3.5531 crore in deposit accounts, including margin money for bank guarantees, Rs 2.1351 crore in current accounts and Rs 7.72 lakh of cash on hand.

Investing activities used Rs 12.14 lakh, including a Rs 71.75 lakh increase in capital work in progress, partly offset by Rs 4.42 lakh of interest and other income. Financing activities used Rs 32.83 lakh after Rs 66.73 lakh of net short-term borrowing repayments and Rs 38.47 lakh of finance costs, partly offset by Rs 25.50 lakh from shares issued to minority shareholders of a subsidiary.

What did Chiraharit disclose about subsidiaries and IPO proceeds?

Chiraharit consolidated Malaxmi Polymers Private Limited, in which it held 66% at both 30 September 2026 and 31 March 2026, and Vasavi Building Materials Private Limited, in which it held 100% at both dates. The group said it operates in a single business segment, so the filing contains no revenue or profit split by subsidiary or segment.

During H1, Chiraharit subscribed to 4,95,000 equity shares of Rs 10 each in Malaxmi Polymers at par, investing Rs 49.50 lakh through rights issue offers dated 22 July 2026 and 29 September 2026. Its holding remained 66%. Chiraharit also said there was no deviation or variation in IPO-proceeds use from the objectives in its 23 September 2025 prospectus.

The audit committee reviewed the results and the board approved them on 12 November 2026. G P Associates issued a limited-review conclusion stating that nothing had come to its attention to indicate a material misstatement or inadequate required disclosure. Its conclusion on Vasavi Building Materials relied on that subsidiary’s other auditor’s review report and was not modified.

Conclusion

Chiraharit’s H1 results combine a 38.7% increase in revenue, a return to Rs 81.78 lakh of attributable profit and a Rs 3.3985 crore operating cash outflow. Lower finance costs and lower employee expense accompanied the earnings reversal, while increases in inventories, advances and reductions in trade payables affected cash generation.

The unresolved matter to watch in subsequent disclosures is whether working-capital movements reverse, particularly inventories, short-term advances and trade payables, after the H1 cash outflow. Chiraharit has disclosed no segment-level targets or separate subsidiary financial outlook for its 66%-owned Malaxmi Polymers and wholly owned Vasavi Building Materials.