Galaxy Supermarket posts Rs 71.65 lakh loss as costs rise

Galaxy Supermarket Limited reported a Rs 71.65 lakh net loss for the quarter ended September 30, 2026, reversing a Rs 1.49 lakh profit a year earlier, as revenue from operations rose 41.4% to Rs 15.02 crore but total expenses increased 51.2% to Rs 15.68 crore. The board approved the unaudited results on November 2, 2026.

Why did Galaxy Supermarket make a loss despite higher sales?

Galaxy Supermarket made a loss because total expenses of Rs 15.68 crore exceeded total income of Rs 15.02 crore in the quarter ended September 30, 2026. Revenue from operations increased from Rs 10.62 crore in the quarter ended September 30, 2025, while other income declined to Rs 18,000 from Rs 29,000.

The continuing business recorded a Rs 65.66 lakh loss before and after tax, compared with a Rs 25.35 lakh profit in the corresponding quarter a year earlier. Discontinued operations added a Rs 5.99 lakh loss, taking the total quarterly loss to Rs 71.65 lakh. In the preceding quarter ended June 30, 2026, the total loss was Rs 45.99 lakh, making the September-quarter loss Rs 25.66 lakh higher sequentially.

Basic and diluted loss per share for continuing and discontinued operations was Rs 0.14 in the September 2026 quarter, compared with nil in the September 2025 quarter. Galaxy Supermarket said the earnings-per-share figures were not annualised and were computed using the weighted average number of equity shares outstanding during the period.

Which costs increased faster than Galaxy Supermarket revenue?

Galaxy Supermarket's cost of materials consumed rose 46.4% year on year to Rs 13.27 crore in the September 2026 quarter, exceeding the 41.4% increase in revenue from operations. Material costs were Rs 9.07 crore in the September 2025 quarter and Rs 10.68 crore in the June 2026 quarter.

Employee benefits expense increased to Rs 94.69 lakh from Rs 47.98 lakh a year earlier, while depreciation and amortisation increased to Rs 40.49 lakh from Rs 32.97 lakh. Finance costs fell to Rs 36.26 lakh from Rs 48.88 lakh a year earlier, although they were above Rs 34.22 lakh in the June 2026 quarter. The company identifies dealing and trading in food, beverages and grocery products as its only active business segment.

Other expenses were Rs 69.37 lakh, compared with Rs 52,000 in the September 2025 quarter and Rs 65.87 lakh in the June 2026 quarter. The filing does not provide a line-by-line explanation for that year-on-year movement. Total expenses increased by Rs 5.31 crore from a year earlier, while revenue from operations increased by Rs 4.40 crore, resulting in the shift in continuing operations from profit to loss.

How did Galaxy Supermarket perform in the first half of 2026-27?

Galaxy Supermarket recorded a Rs 1.18 crore total loss for the half year ended September 30, 2026, compared with a Rs 45.81 lakh profit in the corresponding half year of 2025-26. Revenue from operations rose 28.3% to Rs 27.25 crore from Rs 21.23 crore, while total expenses rose 40.9% to Rs 28.34 crore from Rs 20.11 crore.

The half-year loss from continuing operations was Rs 1.09 crore, compared with a Rs 1.12 crore profit in the prior-year half. Discontinued operations reported a Rs 8.43 lakh loss for the half year ended September 30, 2026, versus a Rs 66.08 lakh loss in the corresponding period a year earlier. The reduction in discontinued-operation losses did not offset the reversal in the continuing business.

For the year ended March 31, 2026, Galaxy Supermarket reported a Rs 1.52 crore total profit on revenue from operations of Rs 42.31 crore. Revenue of Rs 27.25 crore in the six months ended September 30, 2026 was more than half of that prior full-year revenue, but the filing does not disclose a revenue target or forecast for the rest of 2026-27.

What do Galaxy Supermarket's balance sheet and cash flow show?

Galaxy Supermarket reported total assets of Rs 22.51 crore as of September 30, 2026, up from Rs 19.64 crore at March 31, 2026, while total equity was negative Rs 19.41 crore. Equity share capital was unchanged at Rs 49.78 crore, and other equity moved to negative Rs 69.19 crore from negative Rs 68.02 crore.

Current liabilities rose to Rs 33.40 crore from Rs 29.84 crore, while current assets increased to Rs 11.35 crore from Rs 8.96 crore between March 31 and September 30, 2026. Trade payables increased to Rs 15.36 crore from Rs 12.33 crore, current borrowings rose to Rs 13.92 crore from Rs 13.24 crore, and inventories increased to Rs 10.29 crore from Rs 6.96 crore.

Net cash used in operating activities was Rs 15.16 lakh in the half year ended September 30, 2026, while the cash-flow statement reported net operating cash inflow of Rs 2.01 crore for the year ended March 31, 2026. A Rs 3.33 crore increase in inventories was partly offset by a Rs 2.88 crore increase in trade payables, other liabilities and provisions. Cash and cash equivalents declined to Rs 9.46 lakh from Rs 78.13 lakh at March 31, 2026.

What going-concern matters and actions has Galaxy Supermarket disclosed?

Galaxy Supermarket said its entire net worth has been eroded by losses incurred in previous years and that current liabilities exceeded current assets at September 30, 2026. It said these conditions create a material uncertainty that may cast significant doubt on its ability to continue as a going concern, although it prepared the financial statements on a going-concern basis.

Management said it has taken initiatives to improve operational efficiency, boost sales, reduce costs and diversify activity in supermarket-store operations. It said those initiatives had produced positive results and that it was confident net worth would turn positive in the near future, but the filing gives no timetable, financial target or projected cash-flow amount.

Galaxy Supermarket disclosed a Rs 2.90 crore contingent liability related to employees of its closed Bengaluru commissary unit, which remains to be finalised. The company said it had made a complete provision for a possible settlement and that some payments had already been appropriated in the accounts. The Bengaluru, Mumbai and Gurugram commissary units were shut on October 12, 2022, January 31, 2024 and September 30, 2024, respectively, and their division is presented as discontinued operations.

Conclusion

Galaxy Supermarket's September 2026 results show that a 41.4% increase in revenue did not cover faster growth in costs. Revenue from operations reached Rs 15.02 crore, but expenses of Rs 15.68 crore produced a Rs 71.65 lakh quarterly loss, reversing the Rs 1.49 lakh profit reported a year earlier. The half-year result also shifted to a Rs 1.18 crore loss despite revenue of Rs 27.25 crore.

The next reported results will indicate whether management's plans to boost sales, reduce costs and develop supermarket-store operations affect profitability and cash generation. Investors can also monitor the disclosed going-concern uncertainty, current liabilities of Rs 33.40 crore, cash of Rs 9.46 lakh and progress towards settling the Rs 2.90 crore Bengaluru commissary employee obligation.