Davin Sons Retail September-half revenue falls 25%, profit 46%

Davin Sons Retail Limited reported revenue from operations of Rs 3.0435 crore for the half year ended 30 September 2026, down 25% from Rs 4.0384 crore a year earlier, while net profit fell 46% to Rs 30.58 lakh and operating activities used Rs 92.47 lakh of cash.

How did Davin Sons Retail's September-half revenue change?

Davin Sons Retail's revenue from operations declined by Rs 99.49 lakh year on year to Rs 3.0435 crore in the half year ended 30 September 2026, from Rs 4.0384 crore in the half year ended 30 September 2025. Other income declined to Rs 0.24 lakh from Rs 0.36 lakh, resulting in total revenue of Rs 3.046 crore, compared with Rs 4.042 crore a year earlier.

The latest half also trailed the immediately preceding half year ended 31 March 2026, when revenue from operations was Rs 4.1174 crore and total revenue was Rs 4.138 crore. For the year ended 31 March 2026, revenue from operations was Rs 8.1557 crore and total revenue was Rs 8.18 crore, meaning the September 2026 half generated less than half of the preceding full-year revenue.

Davin Sons Retail discloses wholesale fast-moving consumer goods, or FMCG, products and readymade-garment-related activities within its business description. The filing does not provide revenue by either of its two business segments, because it says neither segment met the quantitative thresholds for separate disclosure under Accounting Standard 17.

What happened to Davin Sons Retail's September-half profit?

Davin Sons Retail's net profit after tax was Rs 30.58 lakh in the half year ended 30 September 2026, compared with Rs 56.49 lakh in the corresponding 2025 half and Rs 20.44 lakh in the half year ended 31 March 2026. Profit before tax was Rs 38.57 lakh, down from Rs 80.80 lakh a year earlier but above Rs 23.03 lakh in the preceding half.

Total expenses declined to Rs 2.6602 crore from Rs 3.2339 crore in the September 2025 half, a reduction of Rs 57.37 lakh. That expense reduction was smaller than the Rs 99.60 lakh fall in total revenue, which reduced profit before tax by Rs 42.23 lakh from the prior-year period.

Purchases of stock-in-trade fell to Rs 1.629 crore from Rs 3.5747 crore, while the inventory-change line was negative Rs 63.64 lakh, compared with negative Rs 1.4453 crore a year earlier. A negative inventory-change figure reduced expenses in both periods, but its benefit was Rs 81.89 lakh lower in the latest half.

Several costs increased despite lower revenue. Employee benefit expense rose to Rs 69.02 lakh from Rs 59.96 lakh, depreciation and amortisation increased to Rs 22.97 lakh from Rs 9.52 lakh, and other expenses rose to Rs 72.18 lakh from Rs 39.39 lakh. Finance costs increased to Rs 2.58 lakh from Rs 1.58 lakh, while net tax expense declined to Rs 8 lakh from Rs 24.31 lakh.

Why was Davin Sons Retail's operating cash flow negative?

Davin Sons Retail reported net cash used in operating activities of Rs 92.47 lakh for the period ended 30 September 2026, despite profit before tax of Rs 38.57 lakh. Operating profit before working-capital changes was Rs 62.50 lakh after adjustments including Rs 22.97 lakh of depreciation, Rs 1 lakh of interest expense and Rs 0.23 lakh of interest income.

The cash-flow statement records a Rs 1.5605 crore outflow under the movement in short-term loans and advances and a Rs 63.64 lakh outflow from inventories. Those movements outweighed cash inflows associated with a Rs 18.95 lakh reduction in trade receivables, a Rs 41.13 lakh increase in trade payables and an Rs 8.35 lakh increase in other current liabilities.

The reported operating outflow is smaller than the Rs 3.8431 crore operating cash outflow shown for the full year ended 31 March 2026, although the two reporting periods are not directly comparable because one covers six months and the other 12 months. Davin Sons Retail reported no direct taxes paid and no extraordinary cash-flow item in the September 2026 period.

Investing activities generated Rs 18.09 lakh in the latest period, compared with an outflow of Rs 2.9712 crore in the year ended 31 March 2026. Financing activities used Rs 4.35 lakh, principally alongside a Rs 5.83 lakh reduction in short-term borrowings and Rs 1 lakh of interest paid.

What changed in Davin Sons Retail's balance sheet?

Davin Sons Retail's total assets, which equal total equity and liabilities, increased to Rs 22.5204 crore at 30 September 2026 from Rs 21.5931 crore at 31 March 2026. Reserves and surplus increased by Rs 30.58 lakh to Rs 12.46 crore, matching the reported net profit for the half year, while share capital remained Rs 6.6128 crore.

Inventories increased by Rs 63.64 lakh to Rs 7.3699 crore, while trade receivables declined by Rs 18.95 lakh to Rs 4.37 crore. Cash and cash equivalents fell by Rs 78.73 lakh to Rs 1.7616 crore, consistent with the cash-flow statement's reported net decrease in cash during the half year.

Trade payables increased to Rs 57.96 lakh at 30 September 2026 from Rs 16.83 lakh at 31 March 2026, while other current liabilities rose to Rs 45.62 lakh from Rs 27.27 lakh. Short-term borrowings decreased to Rs 2.11 lakh from Rs 7.95 lakh, whereas long-term borrowings rose to Rs 8.56 lakh from Rs 6.08 lakh.

What did Davin Sons Retail disclose about review and corporate actions?

Davin Sons Retail's unaudited standalone results were reviewed by its audit committee and approved by its board on 14 November 2026. Sharma Sharma & Co., in its review report dated 14 November 2026, stated that nothing had come to its attention to indicate required disclosures were absent or that the results contained a material misstatement.

The review firm said its work under the Standard on Review Engagements 2410 was substantially narrower than an audit and therefore did not result in an audit opinion. Davin Sons Retail also reported no investor complaints received or pending as at 30 September 2026 and said it has not adopted Indian Accounting Standards because it falls within the exempted category cited in its filing.

The board approved moving the registered office with effect from 14 November 2026 from P.P. City Centre in Pitampura to Shop No. 125 and 126, Vikas Tower, Plot No. 26, Road No. 44, Pitampura, Delhi 110034. Officials were authorised to undertake statutory filings and intimations with the Registrar of Companies, stock exchange and other relevant authorities.

Conclusion

Davin Sons Retail remained profitable in the half year ended 30 September 2026, but lower revenue and higher employee, depreciation, finance and other expenses reduced net profit from Rs 56.49 lakh to Rs 30.58 lakh. The Rs 92.47 lakh operating cash outflow was associated with working-capital movements, including higher inventories and the reported movement in short-term loans and advances.

The disclosed next corporate action is execution of the registered-office move approved from 14 November 2026, including required filings and intimations. Subsequent results will show whether revenue recovers from Rs 3.0435 crore and whether operating cash flow improves after the September-period working-capital movements.