Future Market Networks H1 profit falls 38% as income drops

Future Market Networks Limited (FMNL) reported standalone net profit of Rs 2.8724 crore for the half year ended September 30, 2026, down 38% from Rs 4.6348 crore a year earlier, as total income fell to Rs 41.0854 crore from Rs 60.1353 crore. The board approved the unaudited results on November 5, 2026.

Why did FMNL's H1 profit fall?

FMNL's H1 profit fell because its Rs 19.0499 crore decline in total income was larger than the reduction in expenses during the six months ended September 30, 2026. Profit before tax declined to Rs 2.7327 crore from Rs 4.1251 crore in the corresponding half year, while net profit declined by Rs 1.7624 crore to Rs 2.8724 crore.

Total income decreased 32% year on year to Rs 41.0854 crore from Rs 60.1353 crore. Total expenses, calculated from the reported total-income and profit-before-tax lines, declined to Rs 38.3527 crore from Rs 56.0102 crore, a reduction of Rs 17.6575 crore. The expense reduction therefore did not match the fall in income.

FMNL reported a deferred-tax credit of Rs 13.96 lakh in H1 2026, compared with a Rs 50.97 lakh deferred-tax credit in H1 2025. This meant net profit exceeded pre-tax profit in both periods, but the tax credit was lower in the latest half year.

How did FMNL perform in the September quarter?

FMNL reported standalone net profit of Rs 32.36 lakh in the quarter ended September 30, 2026, compared with Rs 3.4289 crore in the September 2025 quarter. Total income fell to Rs 16.7963 crore from Rs 26.9391 crore, while profit before tax declined to Rs 28.85 lakh from Rs 3.1941 crore.

The September 2026 quarter was also below the preceding June 2026 quarter, when FMNL reported net profit of Rs 2.5489 crore and total income of Rs 24.2991 crore. September-quarter total income was lower by Rs 7.5028 crore sequentially and net profit was lower by Rs 2.2253 crore.

FMNL recorded operating costs of Rs 3.6065 crore in the September 2026 quarter, down from Rs 5.5835 crore a year earlier. Finance costs, however, rose to Rs 2.9063 crore from Rs 1.8047 crore, while depreciation and amortisation expense was Rs 5.5003 crore. The quarter included a deferred-tax credit of Rs 3.50 lakh, compared with a Rs 23.48 lakh credit a year earlier.

What happened to FMNL's cash flow and cash balance?

FMNL's closing cash and cash-equivalent balance under its cash-flow statement was Rs 62.92 lakh at September 30, 2026, down from Rs 5.5825 crore a year earlier. The latest closing amount comprised Rs 43.57 lakh of cash and cash equivalents and Rs 19.35 lakh invested in liquid funds.

The balance sheet separately reported cash and cash equivalents of Rs 43.57 lakh at September 30, 2026, compared with Rs 4.3351 crore at March 31, 2026. The cash-flow statement shows a Rs 4.8707 crore net decrease in cash and cash equivalents during H1 2026, after an Rs 1.3732 crore decrease in the prior-year half.

Operating activities generated Rs 18.1998 crore in H1 2026, compared with Rs 19.8446 crore in H1 2025. Investing activities moved to an outflow of Rs 2.8782 crore from an inflow of Rs 2.5028 crore, including Rs 4.9982 crore of net loans given or not received back. Financing activities used Rs 20.1923 crore, including Rs 13.9324 crore of lease-liability payments.

What changed in FMNL's balance sheet?

FMNL's total assets declined to Rs 281.3366 crore at September 30, 2026, from Rs 288.0972 crore at March 31, 2026. Non-current assets fell to Rs 202.6024 crore from Rs 209.4691 crore, while current assets were broadly stable at Rs 78.7341 crore versus Rs 78.6281 crore.

Right-of-use assets fell to Rs 45.1498 crore from Rs 57.2183 crore, whereas investment properties increased to Rs 42.5588 crore from Rs 40.2674 crore. FMNL operates in one segment, Property and Related Services, and therefore does not present separate reportable business segments under Indian Accounting Standard 108.

Total equity increased to Rs 130.1889 crore from Rs 124.6945 crore. Equity share capital rose to Rs 66.763 crore from Rs 63.8444 crore, and the cash-flow statement recorded Rs 2.6219 crore of proceeds from issue of share capital in H1 2026.

Total liabilities decreased to Rs 151.1476 crore from Rs 163.4027 crore. Non-current borrowings fell to Rs 54.709 crore from Rs 59.6676 crore and non-current lease liabilities declined to Rs 18.8693 crore from Rs 31.8009 crore, while current borrowings remained Rs 10.0019 crore.

What unresolved matters did FMNL disclose?

FMNL disclosed continuing proceedings relating to the Ahmedabad 10 Acre Mall property and a matter involving JC Flowers ARC. The filing states that FMNL and Basuti filed a securitisation application challenging a symbolic-possession notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and lists November 6, 2026 as the next date in the matter.

FMNL also said it filed a claim of Rs 16.5141 crore on April 18, 2025 with the official liquidator of Future Retail Limited in relation to its liquidation. The company said it had surrendered leasehold rights in DCN Mall, Kolkata, effective July 31, 2026, but that the settlement amount was yet to be received.

The filing further states that FMNL converted the leasehold land at Cosmos Mall, Ujjain into freehold land and initiated a process to sell the designated hotel area. No sale value or timeline was disclosed for that process. Separately, the company said an arbitration-related matter concerning a commercial premises at Kharagpur, West Bengal remains pending for further hearing.

Conclusion

FMNL remained profitable in H1 2026, but its standalone net profit, total income, operating cash inflow and closing cash balance were all lower than in H1 2025. The reported decline in total income to Rs 41.0854 crore, alongside the shift in investing cash flow to a Rs 2.8782 crore outflow, explains the weaker half-year comparison.

Investors can next watch the November 6, 2026 date in the Ahmedabad property matter, whether FMNL receives the DCN Mall settlement amount, and developments in its Rs 16.5141 crore claim in the Future Retail Limited liquidation. The filing also identifies the planned sale process for the hotel area at Cosmos Mall, Ujjain, without a disclosed completion date or consideration.