Gujarat Natural Resources Limited profit falls 63% to Rs 4.24 crore

Gujarat Natural Resources Limited reported consolidated profit after tax of Rs 4.24 crore for the quarter ended 30 September 2026, down 63% from Rs 11.35 crore in the June 2026 quarter, while revenue from operations rose 78% to Rs 10.19 crore. Gujarat Natural Resources’ first-half profit after tax rose to Rs 15.59 crore from Rs 5.77 crore a year earlier.

What were Gujarat Natural Resources’ September-quarter results?

Gujarat Natural Resources recorded total income of Rs 11.40 crore in the September 2026 quarter, compared with Rs 7.38 crore in the June 2026 quarter and Rs 9.96 crore in the September 2025 quarter. Revenue from operations was Rs 10.19 crore, up from Rs 5.72 crore sequentially and Rs 8.65 crore a year earlier, while other income declined to Rs 1.20 crore from Rs 1.66 crore in June.

Profit before tax was Rs 3.83 crore in the September quarter, versus Rs 11.49 crore in June and Rs 4.35 crore in the year-earlier quarter. Gujarat Natural Resources reported a tax credit of Rs 40.71 lakh for September 2026, comprising current tax of Rs 15.81 lakh and deferred-tax income of Rs 56.52 lakh, resulting in profit after tax of Rs 4.24 crore.

Why did Gujarat Natural Resources’ profit decline despite higher revenue?

Gujarat Natural Resources’ disclosed expense movements show that total expenses changed from a negative Rs 4.11 crore in the June 2026 quarter to a positive Rs 7.56 crore in the September quarter, more than offsetting the Rs 4.47 crore sequential increase in total income. Consequently, profit before tax declined by Rs 7.66 crore quarter on quarter, while profit after tax fell by Rs 7.11 crore.

The largest movement within the reported expense line was inventory change, which was an expense of Rs 93.10 lakh in September after generating a negative expense of Rs 12.95 crore in June. Purchases of stock-in-trade decreased to Rs 1.01 crore from Rs 3.31 crore, but depreciation and amortisation rose to Rs 2.11 crore from Rs 1.68 crore, and finance cost increased to Rs 32.78 lakh from Rs 4.87 lakh.

The September-quarter result was still ahead of the year-earlier period in several measures. Revenue from operations increased by Rs 1.55 crore from Rs 8.65 crore in the quarter ended 30 September 2025, and profit after tax rose by Rs 40.02 lakh from Rs 3.84 crore. Total expenses, however, increased to Rs 7.56 crore from Rs 5.62 crore over the same comparison.

How did Gujarat Natural Resources perform in the first half?

Gujarat Natural Resources generated first-half revenue from operations of Rs 15.92 crore for the six months ended 30 September 2026, compared with Rs 12.00 crore for the corresponding 2025 period. Total income increased to Rs 18.78 crore from Rs 16.70 crore, while profit after tax rose to Rs 15.59 crore from Rs 5.77 crore.

First-half profit before tax was Rs 15.33 crore, up from Rs 6.27 crore a year earlier, and there were no exceptional items in either half-year period. The first-half tax line was a credit of Rs 26.17 lakh, compared with tax expense of Rs 50.71 lakh in the prior-year half, consisting of current tax of Rs 15.81 lakh and deferred-tax income of Rs 41.98 lakh in the latest period.

Basic and diluted earnings per share for the six months were Rs 1.02, compared with Rs 0.45 in the first half of 2025. Total comprehensive income was Rs 15.58 crore, marginally below profit after tax because other comprehensive income was negative Rs 1.21 lakh; the corresponding total comprehensive income in the prior-year half was Rs 5.77 crore.

What changed in Gujarat Natural Resources’ balance sheet and cash flow?

Gujarat Natural Resources’ consolidated assets stood at Rs 313.10 crore at 30 September 2026, up from Rs 244.16 crore at 31 March 2026. Capital work in progress rose to Rs 86.28 crore from Rs 48.68 crore, inventories increased to Rs 23.07 crore from Rs 11.05 crore, and trade receivables rose to Rs 14.12 crore from Rs 3.76 crore.

Shareholders’ funds increased to Rs 243.43 crore at 30 September from Rs 208.30 crore at 31 March, reflecting other equity of Rs 90.03 crore against Rs 54.90 crore. Current liabilities rose to Rs 61.19 crore from Rs 26.80 crore, with current borrowings increasing to Rs 36.38 crore from Rs 7.26 crore and trade payables to creditors other than micro and small enterprises rising to Rs 15.28 crore from Rs 11.14 crore.

Net cash generated from operating activities in the six months was Rs 23.79 crore, lower than Rs 48.05 crore in the corresponding prior-year period. Investment activities used Rs 36.20 crore, including Rs 37.59 crore for the increase or decrease in capital work in progress and Rs 14.96 crore of investment purchases; financing activities supplied Rs 17.18 crore. Closing cash and cash equivalents were Rs 6.89 crore, compared with Rs 2.11 crore at 31 March 2026.

Conclusion

Gujarat Natural Resources’ September-quarter figures show that higher revenue did not translate into higher sequential profit. The movement in total expenses from negative Rs 4.11 crore in June to positive Rs 7.56 crore in September, including the inventory-change line shifting from negative Rs 12.95 crore to an expense of Rs 93.10 lakh, coincided with profit before tax falling to Rs 3.83 crore.

What to watch in future disclosures is the development of working-capital and project-related balances that changed during the half year. Capital work in progress reached Rs 86.28 crore, current borrowings rose to Rs 36.38 crore, and operating cash generation fell to Rs 23.79 crore from Rs 48.05 crore in the corresponding prior-year six months.