CIAN Healthcare half-year loss narrows to Rs 1.43 crore

CIAN Healthcare Limited reported a consolidated net loss of Rs 1.43 crore for the half year ended September 30, 2026, against Rs 5.32 crore a year earlier, while wholly owned subsidiary Dr. Smith's Biotech Private Limited had nil revenue and a Rs 1.65 crore loss under separately qualified interim financial information.

How did CIAN Healthcare's consolidated loss change?

CIAN Healthcare's consolidated net loss narrowed by Rs 3.89 crore year on year to Rs 1.43 crore in the half year ended September 30, 2026, from Rs 5.32 crore in the half year ended September 30, 2025. Loss before tax was Rs 1.26 crore, compared with Rs 5.25 crore, while tax expense rose to Rs 17.23 lakh from Rs 7.37 lakh.

The September 2026 result excluded exceptional items, whereas the half year ended March 31, 2026 included exceptional items of Rs 13.29 crore. That period recorded a consolidated loss after tax of Rs 17.97 crore, compared with a full-year loss of Rs 23.29 crore for the year ended March 31, 2026.

CIAN Healthcare reported basic and diluted loss per share, before exceptional items, of Rs 0.57 for the September 2026 half year, versus Rs 2.13 in the corresponding 2025 period. Paid-up equity share capital stood at Rs 25 crore on September 30, 2026, essentially unchanged from Rs 25 crore a year earlier.

What changed in CIAN Healthcare's income and expenses?

CIAN Healthcare's income from operations rose to Rs 12.47 crore in the half year ended September 30, 2026 from Rs 11.32 crore a year earlier. Other income declined to Rs 43.38 lakh from Rs 62.82 lakh, leaving total income at Rs 12.90 crore, up from Rs 11.95 crore.

Total expenses fell by Rs 3.02 crore to Rs 14.17 crore from Rs 17.19 crore. Cost of materials consumed decreased to Rs 3.73 crore from Rs 8.26 crore, while changes in inventories of finished goods and work in progress were Rs 3.07 lakh, compared with Rs 91.50 lakh in the September 2025 half year.

Some cost lines increased in the September 2026 period. Employee benefits expense was Rs 3.60 crore against Rs 2.23 crore, finance costs were Rs 57.02 lakh against Rs 81,000, and other expenses rose to Rs 2.41 crore from Rs 1.50 crore. Depreciation and amortisation were Rs 1.98 crore, compared with Rs 1.96 crore a year earlier.

What did Dr. Smith's Biotech contribute to the group result?

Dr. Smith's Biotech reported nil revenue and a net loss after tax of Rs 1.65 crore for the half year ended September 30, 2026. Its loss exceeded CIAN Healthcare's consolidated loss of Rs 1.43 crore, but the filing does not provide a separate holding-company profit and loss statement or a consolidation reconciliation explaining offsetting group items.

The subsidiary had total assets of Rs 15.84 crore at September 30, 2026. Its interim financial information was reviewed by another auditor, and CIAN Healthcare's consolidated auditor said its conclusion on the subsidiary amounts and disclosures was based on that auditor's report and its own review procedures.

The subsidiary auditor's qualified conclusion covered inventories of Rs 45.46 lakh, trade receivables of Rs 4.41 crore, property, plant and equipment of Rs 8.99 crore, and unreconciled Goods and Services Tax, or GST, input tax credit of Rs 1.13 crore included in balances with government authorities. The filing does not quantify any potential accounting adjustment to the subsidiary's reported loss.

Why did the auditors qualify CIAN Healthcare's review conclusion?

The auditors issued a qualified conclusion because they could not obtain sufficient appropriate evidence over several CIAN Healthcare holding-company balances at September 30, 2026. These included inventories of Rs 4.75 crore valued from book records without physical verification or an inventory statement, property, plant and equipment of Rs 21.99 crore, and capital work-in-progress of Rs 6.16 crore.

The auditor also cited unconfirmed trade receivables and unreconciled GST input tax credit balances. It said the missing evidence meant it could not determine whether adjustments to carrying values, depreciation or the half-year net loss were required.

The same categories of matters were subject to modification in the predecessor auditor's review of the September 2025 half-year results and audit of the year ended March 31, 2026. The current auditor said those unresolved matters affect comparability between the September 2026 figures and corresponding earlier periods.

How did CIAN Healthcare's cash flow and balance sheet move?

CIAN Healthcare used Rs 5.10 crore in operating activities during the half year ended September 30, 2026, compared with Rs 6.56 crore used in the corresponding 2025 period. Trade receivables increased by Rs 2.03 crore and other current assets increased by Rs 2.36 crore, despite operating profit before working-capital changes of Rs 1.21 crore.

Financing activities generated Rs 5.87 crore, against an outflow of Rs 6.14 lakh a year earlier. The period included Rs 13.46 crore of proceeds from short-term borrowings and repayments of Rs 6.82 crore of long-term borrowings, while cash and cash equivalents declined by Rs 33.92 lakh to Rs 85.71 lakh.

Total assets were Rs 65.04 crore at September 30, 2026, down from Rs 146.43 crore a year earlier. Current assets were Rs 27.30 crore, including inventories of Rs 5.20 crore and trade receivables of Rs 14.68 crore, while shareholders' funds were Rs 14.86 crore versus Rs 27.04 crore at September 30, 2025.

What actions has CIAN Healthcare set out to address the qualifications?

CIAN Healthcare said it will complete physical inventory verification before March 31, 2027 after staff shortages during the September closing period and an ongoing migration of inventory records to its enterprise resource planning system. It said any adjustments identified from the verification would be recorded under applicable accounting standards.

Management also expects to compile a fixed-asset register and physically verify property, plant and equipment and capital work-in-progress by March 31, 2027. It expects to complete supplier-wise and invoice-wise GST input tax credit reconciliation by December 31, 2026, and plans to obtain trade-receivable confirmations by March 31, 2027.

Management said the subsidiary's resolution plan was implemented on October 23, 2026. It attributed matters raised by the subsidiary auditor to the period when the subsidiary's affairs were managed by the Resolution Professional and said any required adjustments would be recorded under applicable accounting standards.

Conclusion

CIAN Healthcare reported a substantially narrower consolidated loss in the half year ended September 30, 2026 as total income rose by Rs 94.94 lakh and total expenses fell by Rs 3.02 crore from a year earlier. The result nonetheless includes a nil-revenue, Rs 1.65 crore loss at Dr. Smith's Biotech and review qualifications covering assets, inventories, receivables and GST balances.

The next disclosed milestones are completion of GST reconciliation by December 31, 2026 and physical inventory verification, fixed-asset register compilation, asset verification and receivable confirmations by March 31, 2027. CIAN Healthcare also said that accounting adjustments, if any, following implementation of the subsidiary's October 23, 2026 resolution plan would be recorded under applicable standards.