C.J. Gelatine returns to half-year profit despite lower sales

C.J. Gelatine Products Limited returned to a Rs 14.46 lakh profit for the half year ended September 30, 2026, from a Rs 9.92 lakh loss a year earlier, despite revenue from operations slipping to Rs 20.45 crore from Rs 20.52 crore. Total expenses declined by Rs 26.57 lakh to Rs 20.43 crore.

What drove C.J. Gelatine’s return to half-year profit?

C.J. Gelatine returned to profit because its total expenses declined more than its total income during the half year ended September 30, 2026. Total income fell by Rs 8.69 lakh year on year to Rs 20.47 crore, while total expenses fell by Rs 26.57 lakh to Rs 20.43 crore, producing profit before exceptional items and tax of Rs 4.44 lakh against a Rs 13.44 lakh loss a year earlier.

The company reported profit before tax of Rs 12.32 lakh for the September 2026 half year, compared with a Rs 13.44 lakh loss before tax in the corresponding 2025 period. A deferred-tax credit of Rs 2.14 lakh then resulted in reported profit after tax of Rs 14.46 lakh, versus a Rs 9.92 lakh loss in the prior-year half year.

C.J. Gelatine also reported a Rs 7.88 lakh exceptional item in the six-month period. The company said the item represented prior-period adjustments for recognition of Minimum Alternate Tax, or MAT, credit entitlement and reversal of a previous year's income-tax provision; there was no exceptional item in the corresponding half year of 2025.

Basic earnings per share after exceptional items were Rs 0.30 for the half year ended September 30, 2026, compared with a loss per share of Rs 0.21 a year earlier. Paid-up equity share capital was unchanged at Rs 4.81 crore, with each equity share having a face value of Rs 10.

How did C.J. Gelatine’s revenue and costs change?

C.J. Gelatine’s revenue from operations declined by Rs 6.88 lakh to Rs 20.45 crore in the six months ended September 30, 2026. Other income declined to Rs 1.93 lakh from Rs 3.74 lakh, taking total income to Rs 20.47 crore from Rs 20.56 crore in the prior-year period.

Material-consumption cost fell to Rs 16.07 crore from Rs 16.85 crore, a reduction of Rs 77.88 lakh that exceeded the decline in operating revenue. Employee-benefit expense was Rs 2.74 crore, compared with Rs 2.74 crore in the preceding half year, while changes in inventories were negative Rs 85.18 lakh against a positive Rs 1.02 crore a year earlier.

Finance cost rose to Rs 1.02 crore from Rs 71.29 lakh in the half year, while depreciation and amortisation increased to Rs 31.65 lakh from Rs 29.92 lakh. Other expenses rose to Rs 1.13 crore from Rs 86.18 lakh, partly offsetting the reduction in material-consumption cost.

C.J. Gelatine operates in one segment, manufacturing gelatine and related by-products. The filing therefore does not provide product, customer or geographical revenue details to explain the Rs 6.88 lakh reduction in half-year operating revenue.

What did C.J. Gelatine report for the September quarter?

C.J. Gelatine reported a Rs 0.34 lakh profit for the quarter ended September 30, 2026, compared with a Rs 3.93 lakh profit in the September 2025 quarter. Revenue from operations was Rs 9.81 crore, down from Rs 12.09 crore a year earlier and from Rs 10.65 crore in the June 2026 quarter.

The September 2026 quarter included the Rs 7.88 lakh exceptional item disclosed for the half year. Profit before tax for the quarter was Rs 0.10 lakh, and a Rs 0.33 lakh deferred-tax credit resulted in profit after tax of Rs 0.34 lakh.

The half-year profit was concentrated in the June 2026 quarter, when C.J. Gelatine reported Rs 14.12 lakh profit after tax. The June-quarter revenue from operations of Rs 10.65 crore exceeded the September-quarter figure by Rs 84.00 lakh, while total expenses declined to Rs 9.90 crore in September from Rs 10.53 crore in June.

Revenue from operations fell by Rs 2.28 crore from the September 2025 quarter to the September 2026 quarter. The company’s September-quarter result nevertheless remained profitable, whereas its half-year comparison moved from a Rs 9.92 lakh loss in 2025 to a Rs 14.46 lakh profit in 2026.

What do C.J. Gelatine’s balance sheet and cash flow show?

C.J. Gelatine reported total assets of Rs 34.69 crore at September 30, 2026, compared with Rs 34.17 crore at March 31, 2026. Inventories increased to Rs 23.81 crore from Rs 22.69 crore, while trade receivables declined to Rs 3.45 crore from Rs 3.89 crore over the same period.

Cash and cash equivalents increased to Rs 17.25 lakh at September 30, 2026 from Rs 0.47 lakh at March 31, 2026. The half-year cash-flow statement reported an operating cash outflow of Rs 1.81 crore, an investing cash outflow of Rs 35.65 lakh and a financing cash inflow of Rs 2.22 crore, resulting in a Rs 16.78 lakh net increase in cash.

Borrowings totalled Rs 26.87 crore at September 30, 2026, comprising Rs 18.22 crore of non-current borrowings and Rs 8.65 crore of current borrowings. At March 31, 2026, non-current borrowings were Rs 13.49 crore and current borrowings were Rs 10.15 crore, for a total of Rs 23.64 crore.

Total equity was Rs 3.76 crore at September 30, 2026, compared with Rs 3.90 crore at March 31, 2026. Other equity was negative Rs 1.05 crore at the half-year date, versus negative Rs 91.13 lakh at the preceding financial year-end, while equity share capital remained Rs 4.81 crore.

Conclusion

C.J. Gelatine moved from a Rs 9.92 lakh half-year loss to a Rs 14.46 lakh profit while operating revenue declined by Rs 6.88 lakh to Rs 20.45 crore. Lower material-consumption cost was the largest reported cost movement, although higher finance cost, depreciation and other expenses limited the benefit, and the period included a Rs 7.88 lakh exceptional item.

The next results will show whether C.J. Gelatine can improve on September-quarter revenue of Rs 9.81 crore and sustain profitability after the exceptional item. The filing discloses no revenue target or expansion plan, while borrowings of Rs 26.87 crore at September 30, 2026 and half-year finance cost of Rs 1.02 crore remain disclosed measures to watch.