Flex Foods halves first-half loss as revenue rises 5.1%

Flex Foods Limited reduced its net loss to Rs 10.47 crore in the six months ended September 30, 2026, from Rs 21.44 crore a year earlier, as revenue from operations increased 5.1% to Rs 94.24 crore; however, its September-quarter loss widened sequentially to Rs 9.15 crore from Rs 1.32 crore.

What reduced Flex Foods' first-half loss?

Flex Foods reported a Rs 10.47 crore net loss for the half year ended September 30, 2026, compared with a Rs 21.44 crore loss for the corresponding 2025 period. Revenue from operations increased by Rs 4.57 crore to Rs 94.24 crore from Rs 89.67 crore, while total income rose to Rs 94.68 crore from Rs 90.12 crore. The filing states that Flex Foods has one reportable segment.

The lower loss also reflected a decline in total expenses to Rs 107.83 crore from Rs 118.86 crore. Other expenses fell by Rs 10.73 crore to Rs 28.29 crore, while cost of materials consumed declined to Rs 29.37 crore from Rs 31.15 crore. These reductions exceeded increases in power and fuel, which rose to Rs 20.25 crore from Rs 17.97 crore, and employee benefits expense, which increased to Rs 15.27 crore from Rs 14.20 crore.

Flex Foods' loss before tax narrowed to Rs 13.15 crore from Rs 28.74 crore. Finance cost increased to Rs 13.20 crore from Rs 12.97 crore, whereas depreciation and amortisation was Rs 8.81 crore against Rs 8.89 crore a year earlier. The deferred-tax credit was Rs 2.68 crore, lower than Rs 7.30 crore in the prior-year half, and basic as well as diluted loss per share was Rs 8.41 compared with Rs 17.22.

How did Flex Foods perform in the September quarter?

Flex Foods posted a Rs 9.15 crore net loss in the quarter ended September 30, 2026, compared with a Rs 1.32 crore loss in the quarter ended June 30, 2026, and a Rs 8.48 crore loss in the September 2025 quarter. Revenue from operations fell sequentially to Rs 34.50 crore from Rs 59.74 crore, including net sales of Rs 33.84 crore against Rs 56.81 crore in the June quarter.

Total income declined to Rs 34.57 crore in the September quarter from Rs 60.11 crore three months earlier. Total expenses also fell, to Rs 46.07 crore from Rs 61.76 crore, but the Rs 15.69 crore expense reduction was smaller than the Rs 25.54 crore decline in total income. Loss before tax consequently widened to Rs 11.50 crore from Rs 1.65 crore sequentially, though it was slightly lower than the Rs 11.64 crore loss before tax recorded a year earlier.

The latest quarter's deferred-tax credit was Rs 2.35 crore, compared with Rs 0.33 crore in the June quarter and Rs 3.16 crore in the September 2025 quarter. Power and fuel cost was Rs 9.67 crore, up from Rs 9.11 crore a year earlier, while employee benefits expense increased to Rs 7.80 crore from Rs 7.18 crore. Finance cost also rose year on year to Rs 6.68 crore from Rs 6.40 crore.

What changed on Flex Foods' balance sheet?

Flex Foods reported total assets of Rs 391.89 crore at September 30, 2026, down from Rs 407.96 crore at March 31, 2026. Non-current assets declined to Rs 273.32 crore from Rs 278.49 crore, including property, plant and equipment of Rs 236.08 crore compared with Rs 243.97 crore. Current assets fell to Rs 118.57 crore from Rs 129.47 crore over the same period.

Inventories increased to Rs 58.79 crore at September 30 from Rs 50.34 crore at the March year-end. Trade receivables fell to Rs 30.35 crore from Rs 52.20 crore, while other current assets rose to Rs 27.50 crore from Rs 24.37 crore. Cash and cash equivalents were Rs 1.22 crore, and bank balances other than cash equivalents were Rs 15 lakh.

Total equity moved to negative Rs 1.25 crore at September 30 from positive Rs 9.22 crore at March 31. Paid-up equity share capital was unchanged at Rs 12.45 crore, while other equity changed to negative Rs 13.70 crore from negative Rs 3.23 crore. Flex Foods reported no other comprehensive income for the half year, while its total comprehensive loss was Rs 10.47 crore.

How did Flex Foods' borrowings and cash flow move?

Flex Foods' total borrowings were Rs 297.43 crore at September 30, 2026, down from Rs 306.65 crore at March 31, 2026. Non-current borrowings decreased to Rs 191.59 crore from Rs 213.83 crore, while current borrowings increased to Rs 105.84 crore from Rs 92.82 crore. Total current liabilities rose to Rs 198.37 crore from Rs 181.58 crore.

Dues to micro and small enterprises increased to Rs 24.33 crore from Rs 9.57 crore, while trade payables to creditors other than micro and small enterprises declined to Rs 14.25 crore from Rs 32.33 crore. Other financial liabilities increased to Rs 38.79 crore from Rs 31.98 crore. Non-current liabilities fell to Rs 194.77 crore from Rs 217.16 crore, alongside the reduction in non-current borrowings.

The half-year cash-flow statement recorded Rs 19.91 crore of cash generated from operating activities, compared with an outflow of Rs 7.88 crore in the corresponding prior-year period. The working-capital movements included a Rs 18.69 crore decrease in trade receivables, current financial assets and other current assets, partly offset by an Rs 8.45 crore increase in inventories.

Financing activities used Rs 22.66 crore in the latest half year, compared with Rs 11.15 crore generated in the prior-year half. Net repayment of non-current borrowings was Rs 22.24 crore, while current borrowings increased by Rs 13.02 crore. Cash and cash equivalents ended at Rs 1.37 crore in the cash-flow statement, including Rs 15 lakh in specified balances.

Conclusion

Flex Foods' first-half figures show a narrower loss as the Rs 4.57 crore increase in revenue from operations combined with an Rs 11.03 crore fall in total expenses. The improvement was not reflected in the September quarter, where income dropped more sharply than expenses and the net loss reached Rs 9.15 crore.

The next reported results will indicate whether the September-quarter revenue decline from Rs 59.74 crore to Rs 34.50 crore persists. The filing identifies no management earnings target or operating plan; disclosed matters to monitor include current borrowings of Rs 105.84 crore, negative total equity of Rs 1.25 crore and inventories of Rs 58.79 crore at September 30, 2026.