Goenka Business & Finance Limited reports Rs 9 lakh Q2 loss

Goenka Business & Finance reported a Rs 9.08 lakh loss for the quarter ended September 30, 2026, after a Rs 33.91 lakh tax expense exceeded its Rs 24.83 lakh profit before tax. The September-quarter loss followed a Rs 11.09 lakh profit in the preceding quarter, while the half-year result was a Rs 2.03 lakh profit.

Why did Goenka Business & Finance report a September-quarter loss?

Goenka Business & Finance reported a September-quarter loss because total tax expense was Rs 33.91 lakh, exceeding its Rs 24.83 lakh profit before tax. Current tax was Rs 33.73 lakh and deferred tax was Rs 18,000 for the quarter ended September 30, 2026. With no exceptional items reported, the tax charge converted the pre-tax profit into a Rs 9.08 lakh loss from continuing operations.

The outcome differed from the quarter ended June 30, 2026, when Goenka Business & Finance earned Rs 42.49 lakh before tax and reported Rs 11.09 lakh profit after a Rs 31.40 lakh tax expense. A year earlier, the company recorded a Rs 2.3742 crore pre-tax loss for the September 2025 quarter, alongside a Rs 40.57 lakh tax credit, and ended with a Rs 1.9685 crore loss.

The year-on-year result therefore improved at the pre-tax level, from a Rs 2.3742 crore loss to a Rs 24.83 lakh profit, but the tax treatment changed from a credit to an expense. The filing does not explain the reasons for the Rs 33.73 lakh current-tax charge. Its statutory auditor issued a limited review report dated November 6, 2026, stating that nothing had come to its attention indicating a material misstatement in the unaudited results.

How did Goenka Business & Finance's income and expenses change?

Goenka Business & Finance generated Rs 29.3721 crore of total income in the quarter ended September 30, 2026, up from Rs 24.5277 crore in the June 2026 quarter but below Rs 31.6438 crore in the September 2025 quarter. Revenue from operations was Rs 29.3645 crore, while other income was Rs 76,000, compared with Rs 11.29 lakh in the immediately preceding quarter.

Sale of share or service contributed Rs 20.2983 crore in the September 2026 quarter, up from Rs 15.1672 crore in June 2026 but down from Rs 26.9557 crore a year earlier. Interest income was Rs 9.0513 crore, below Rs 9.2395 crore sequentially but more than double the Rs 4.4516 crore reported in the September 2025 quarter. Dividend income was Rs 1.49 lakh.

Total expenses reached Rs 29.1238 crore in the September 2026 quarter, compared with Rs 24.1028 crore in June 2026 and Rs 34.018 crore a year earlier. Finance cost increased to Rs 9.923 crore from Rs 8.5256 crore sequentially and Rs 5.1047 crore year on year. Other expenses were Rs 2.3844 crore, against Rs 1.8163 crore in the preceding quarter and Rs 26.90 lakh in the prior-year quarter.

Purchase of stock in trade declined to Rs 21.8464 crore from Rs 49.9901 crore in June 2026 and Rs 81.3182 crore in September 2025. The results also recorded a negative Rs 5.332 crore change in inventories, compared with negative Rs 36.4371 crore in the June quarter. These two inventory-related lines together reduced the net expense effect of stock purchases, but total expenses still rose sequentially.

Did Goenka Business & Finance improve in the first half?

Goenka Business & Finance reported a Rs 2.03 lakh profit for the half year ended September 30, 2026, compared with a Rs 2.3044 crore loss in the corresponding period a year earlier. Profit before tax was Rs 67.34 lakh, reversing a Rs 2.8007 crore pre-tax loss in the half year ended September 30, 2025. Total tax expense was Rs 65.31 lakh, leaving a narrow reported profit.

Total income for the six months was Rs 53.8999 crore, up from Rs 39.439 crore in the prior-year half. Revenue from operations rose to Rs 53.7794 crore from Rs 39.2628 crore. Interest income increased to Rs 18.2909 crore from Rs 8.617 crore, while sale of share or service rose to Rs 35.4655 crore from Rs 30.6377 crore.

Half-year expenses increased to Rs 53.2265 crore from Rs 42.2397 crore. Finance cost was Rs 18.4486 crore, compared with Rs 9.3994 crore in the prior-year period. Purchase of stock in trade fell to Rs 71.8365 crore from Rs 83.4561 crore, while the negative inventory change narrowed to Rs 41.7691 crore from negative Rs 52.5965 crore.

The company also reported Rs 2.7853 crore of other comprehensive income for the half year, entirely under equity instruments through other comprehensive income. Together with the Rs 2.03 lakh profit for the period, total comprehensive income was Rs 2.8056 crore. In the corresponding prior-year half, total comprehensive income was a loss of Rs 1.6788 crore, including Rs 62.56 lakh of other comprehensive income.

What changed in Goenka Business & Finance's balance sheet and cash flow?

Goenka Business & Finance's total assets were Rs 487.2845 crore at September 30, 2026, compared with Rs 396.0734 crore at March 31, 2026. Loans rose to Rs 336.7899 crore from Rs 320.9997 crore, investments increased to Rs 29.8387 crore from Rs 17.9203 crore, and inventories climbed to Rs 92.6495 crore from Rs 50.8804 crore.

Total financial liabilities rose to Rs 428.0281 crore at September 30 from Rs 354.5832 crore at March 31. Other financial liabilities accounted for Rs 427.0574 crore, compared with Rs 353.6637 crore six months earlier. Non-financial liabilities increased to Rs 21.1048 crore from Rs 5.494 crore, while equity share capital was unchanged at Rs 13.0001 crore and other equity rose to Rs 25.1515 crore from Rs 22.9961 crore.

The notes describe the cash-flow statement as covering the half year ended September 30, 2026, although the statement heading calls it a year-ended statement. It reported Rs 12.6273 crore of operating cash inflow and Rs 9.1457 crore of investing cash outflow, resulting in a Rs 3.4816 crore net cash inflow. Operating cash flow included Rs 77.57 lakh of bad debt written off and Rs 79.93 lakh of provision for standard assets.

The cash-flow statement reported closing cash and cash equivalents of Rs 7.3482 crore, derived from a Rs 3.8666 crore opening balance and the stated net inflow. Separately, the balance sheet showed Rs 1.50 lakh of cash and cash equivalents and Rs 7.3332 crore of bank balances other than cash and cash equivalents. The filing does not provide a reconciliation between the cash-flow presentation and those balance-sheet categories.

Conclusion

Goenka Business & Finance returned to a modest first-half profit as total income increased to Rs 53.8999 crore and pre-tax profit reached Rs 67.34 lakh, compared with a Rs 2.8007 crore pre-tax loss a year earlier. The September-quarter result nevertheless turned to a Rs 9.08 lakh loss because the Rs 33.91 lakh tax expense was higher than the Rs 24.83 lakh pre-tax profit.

The next disclosure to watch is the company's subsequent quarterly result, particularly whether tax expense remains above pre-tax profit and whether finance cost changes after reaching Rs 18.4486 crore in the half year. Investors can also watch for clarification of the cash-flow statement's period label and the difference between its Rs 7.3482 crore closing cash figure and the balance-sheet cash and bank-balance presentation.