Garodia Chemicals reports Rs 12.75 lakh first-half loss

Garodia Chemicals Limited reported a Rs 12.75 lakh loss for the half year ended September 30, 2026, as revenue from operations and other income were nil while total expenses were Rs 12.75 lakh. The result contrasts with a Rs 3.9668 crore profit in the corresponding 2025 half year, when other income was Rs 4.0588 crore.

Why did Garodia Chemicals report a first-half loss?

Garodia Chemicals reported a Rs 12.75 lakh first-half loss because it recorded nil total revenue and Rs 12.75 lakh of total expenses for the half year ended September 30, 2026. There were no exceptional items, current tax, deferred tax or other comprehensive income in the statement, leaving the loss before tax and loss for the period at the same Rs 12.75 lakh.

The corresponding half year ended September 30, 2025 had produced a Rs 3.9668 crore profit, but that period included Rs 4.0588 crore of other income. Revenue from operations was nil in both half years. Total expenses rose by Rs 3.55 lakh to Rs 12.75 lakh in the latest half year from Rs 9.20 lakh a year earlier, while other income fell to nil.

The reported period-on-period swing was therefore associated with the absence of the prior year's other income rather than a change in operating revenue, which remained nil. Garodia Chemicals identifies a single business segment, so it did not provide segment-level revenue, cost or profit disclosures under Indian Accounting Standard 108, or Ind AS 108.

What happened in Garodia Chemicals' September 2026 quarter?

Garodia Chemicals recorded a Rs 2.36 lakh loss in the quarter ended September 30, 2026, compared with a Rs 10.39 lakh loss in the quarter ended June 30, 2026. Revenue from operations, other income and total revenue were nil in both quarters, so the change in expenses accounted for the lower quarterly loss.

Total expenses declined to Rs 2.36 lakh in the September quarter from Rs 10.39 lakh in the June quarter. Employee-benefits expense was unchanged at Rs 0.75 lakh in each quarter, while other expenses fell to Rs 1.61 lakh from Rs 9.64 lakh. Other expenses in the latest quarter were also below Rs 2.64 lakh reported in the quarter ended September 30, 2025.

The September 2025 quarter recorded a Rs 4.0249 crore profit, against the latest quarter's Rs 2.36 lakh loss. The earlier quarter included Rs 4.0588 crore of other income and Rs 3.39 lakh of total expenses, while the September 2026 statement showed nil other income and nil revenue from operations.

How did expenses and earnings per share change?

Garodia Chemicals' total first-half expenses increased to Rs 12.75 lakh from Rs 9.20 lakh in the comparable 2025 period, although employee-benefits expense was unchanged at Rs 1.50 lakh. Other expenses rose to Rs 11.25 lakh from Rs 7.70 lakh, accounting for the Rs 3.55 lakh increase in the total expense line.

Basic and diluted earnings per share, or EPS, were each negative Rs 2.42 for the half year ended September 30, 2026, compared with positive Rs 5.51 for the prior-year half year. The statement labels the EPS figures as not annualised. In the September 2026 quarter, both basic and diluted EPS were negative Rs 0.45, versus negative Rs 1.97 in June 2026 and positive Rs 5.59 in September 2025.

Paid-up equity share capital was Rs 52.63 lakh at September 30, 2026 and June 30, 2026, compared with Rs 7.2002 crore in the September 2025 quarter. The results notes do not explain that year-on-year difference in reported share capital, stating only that previous-quarter figures were regrouped or reclassified where necessary for comparability.

What do Garodia Chemicals' balance sheet and cash flow show?

Garodia Chemicals reported total assets of Rs 9.39 lakh at September 30, 2026, unchanged from March 31, 2026. The balance sheet showed other non-current assets of Rs 6.15 lakh, cash and cash equivalents of Rs 3.17 lakh, and other current assets of Rs 0.07 lakh at both reporting dates.

Equity share capital remained Rs 52.63 lakh, while other equity moved to negative Rs 93.42 lakh at September 30, 2026 from negative Rs 80.68 lakh at March 31, 2026. Non-current borrowings increased to Rs 47.87 lakh from Rs 31.74 lakh. Trade payables fell to Rs 1.66 lakh from Rs 5.00 lakh, and other current liabilities were Rs 0.66 lakh, against Rs 0.70 lakh at year-end.

The cash-flow statement reported Rs 12.75 lakh of net cash used in operating activities for the period ended September 30, 2026, equal to its reported pre-tax loss. It showed cash and cash equivalents declining from Rs 3.17 lakh at the start of the year to negative Rs 9.58 lakh at period-end, with no financing cash flow reported for the period. This differs from the balance sheet's Rs 3.17 lakh cash-and-cash-equivalents figure at September 30, 2026, and the filing does not reconcile the two figures.

What did the auditor review and flag?

Garodia Chemicals' audit committee reviewed the results and its board approved them on November 6, 2026. Laxmikant Kabra & Co LLP performed a limited review under Standard on Review Engagements 2410, which its report says provides moderate assurance and is substantially narrower in scope than an audit.

The reviewer said nothing had come to its attention suggesting that the unaudited results omitted required disclosures or contained a material misstatement. It included an emphasis of matter that balances of debtors, creditors, loans or advances given, and loans or advances received are subject to confirmation and reconciliation. The results note calls the statutory auditor's opinion unmodified, while the limited-review report states that it does not express an audit opinion.

Conclusion

Garodia Chemicals moved to a Rs 12.75 lakh first-half loss as nil operating revenue continued and prior-year other income of Rs 4.0588 crore did not recur. The September-quarter loss narrowed to Rs 2.36 lakh from Rs 10.39 lakh in June, as other expenses fell to Rs 1.61 lakh, but first-half other expenses remained higher year on year at Rs 11.25 lakh.

The next filing will show whether Garodia Chemicals records operating revenue or other income after the September 30, 2026 period. It will also be relevant to watch for a reconciliation of the negative Rs 9.58 lakh cash-flow closing figure with the Rs 3.17 lakh balance-sheet cash figure, and for confirmation and reconciliation of balances identified in the auditor's emphasis of matter.