HB Portfolio Limited first-half profit doubles to Rs 5.36 crore

HB Portfolio Limited reported consolidated profit of Rs 5.36 crore for the six months ended September 30, 2026, up from Rs 2.27 crore a year earlier, as a Rs 6.11 crore June-quarter pre-tax profit outweighed a Rs 23.98 lakh September-quarter pre-tax loss and investment gains increased comprehensive income.

How did HB Portfolio's first-half profit change?

HB Portfolio's consolidated profit for the period rose to Rs 5.36 crore in the six months ended September 30, 2026, from Rs 2.27 crore in the corresponding six months of 2025. Profit before tax increased to Rs 5.87 crore from Rs 3.40 crore, while tax expense declined to Rs 1.16 crore from Rs 1.28 crore. Earnings per share, or EPS, not annualised, rose to Rs 4.98 from Rs 2.11.

The headline profit reflected sharply different quarterly outcomes. HB Portfolio recorded a Rs 5.64 crore profit in the quarter ended June 30, 2026, compared with Rs 7.53 lakh in the September 2025 quarter, before recording a Rs 28.27 lakh loss in the quarter ended September 30, 2026. The prior-year September quarter had generated a Rs 7.53 lakh profit, so the latest quarter was lower both sequentially and year on year.

What drove HB Portfolio's income and expenses?

HB Portfolio generated Rs 15.14 crore of revenue from operations in the first half, up from Rs 11.63 crore a year earlier, and reported Rs 19.50 lakh of other income against Rs 10.21 lakh. Financial services was the only active revenue-generating operating segment during the period, while commodities trading reported nil revenue, matching the prior-year first half.

Total expenses rose to Rs 9.47 crore from Rs 8.33 crore, an increase that was smaller than the Rs 3.61 crore rise in total income. Employee benefit expense increased to Rs 5.76 crore from Rs 5.06 crore, and other expenses rose to Rs 3.23 crore from Rs 2.81 crore. Finance costs were Rs 9.10 lakh, compared with Rs 3.69 lakh in the prior-year period.

The September-quarter loss followed a decline in income to Rs 4.84 crore from Rs 10.50 crore in the preceding June quarter, while expenses increased to Rs 5.08 crore from Rs 4.39 crore. Financial-services segment result before finance costs changed from a Rs 6.16 crore profit in June to a Rs 19.58 lakh loss in September, explaining the reversal in the Group's quarterly pre-tax result.

How did investment valuations affect HB Portfolio's results?

Investment gains contributed to the first-half result through Rs 6.39 crore of realised and unrealised gains on equity instruments measured at fair value through profit or loss, or FVTPL, in the cash-flow reconciliation. These consisted of Rs 2.04 crore of realised gain and Rs 4.35 crore of unrealised gain, compared with combined gains of Rs 3.06 crore in the corresponding 2025 period.

Separate from reported profit, HB Portfolio booked Rs 15.25 crore of net fair-value changes on investments measured at fair value through other comprehensive income, or FVTOCI, before a Rs 2.17 crore tax effect. This helped other comprehensive income reach Rs 13.51 crore, versus Rs 1.37 crore a year earlier, and lifted total comprehensive income to Rs 18.87 crore from Rs 3.64 crore.

The Group's share of associate profit was Rs 64.75 lakh in the first half, compared with Rs 14.77 lakh a year earlier. Its share of the associate's other comprehensive income was Rs 43.59 lakh, down from Rs 1.06 crore. The associate contribution therefore supported profit but did not account for the larger rise in total comprehensive income, which was led by FVTOCI valuation changes.

What changed in HB Portfolio's balance sheet?

HB Portfolio's total assets increased to Rs 288.15 crore at September 30, 2026, from Rs 268.73 crore at March 31, 2026. Non-current investments rose to Rs 169.58 crore from Rs 152.26 crore, while current investments declined to Rs 48.92 crore from Rs 51.78 crore. Current loans increased to Rs 30.08 crore from Rs 25.78 crore.

Total equity reached Rs 275.77 crore at September 30, compared with Rs 258.24 crore at the March year end. Other equity rose by Rs 17.51 crore to Rs 264.29 crore, alongside Rs 18.87 crore of first-half total comprehensive income. Total liabilities increased to Rs 12.39 crore from Rs 10.49 crore, with deferred tax liabilities rising to Rs 7.67 crore from Rs 5.04 crore.

Financial-services assets were Rs 286.69 crore at September 30, 2026, compared with Rs 291.79 crore a year earlier, while segment liabilities were Rs 10.79 crore against Rs 10.44 crore. Commodities-trading assets were Rs 3,000, compared with Rs 52,000 a year before, consistent with the segment's nil first-half revenue.

Why was HB Portfolio's operating cash flow negative?

HB Portfolio used Rs 5.99 crore in operating activities in the six months ended September 30, 2026, compared with an operating cash inflow of Rs 14.16 crore a year earlier. Although profit before tax was Rs 5.87 crore, cash generated before working-capital changes was negative Rs 34.25 lakh after adjustments including the Rs 6.39 crore FVTPL gains.

An increase in loans absorbed Rs 4.29 crore of cash, while income taxes paid or refunded represented a Rs 87.95 lakh outflow. Investing activities supplied Rs 8.20 crore, compared with a Rs 16.33 crore outflow in the prior-year period, including Rs 18.15 crore from sale of investments and Rs 9.88 crore used to purchase investments. Cash and cash equivalents consequently increased to Rs 4.44 crore from Rs 3.70 crore at the start of the period.

The audit committee reviewed, and the board approved, the results on November 9, 2026. The statutory auditor issued an unmodified review conclusion, while noting that five subsidiaries and an associate had unaudited information not reviewed by their respective auditors; management represented these entities as not material to the Group.

Conclusion

HB Portfolio's first-half outcome combined a Rs 15.14 crore financial-services revenue base with Rs 6.39 crore of FVTPL gains and Rs 15.25 crore of pre-tax FVTOCI valuation gains. The June-quarter profit of Rs 5.64 crore was followed by a Rs 28.27 lakh September-quarter loss, while operating activities used Rs 5.99 crore of cash.

The next disclosed corporate event is the proposed reappointment of Managing Director Anil Goyal for five years from February 20, 2027 to February 19, 2032, subject to shareholder approval. Subsequent disclosures can show whether operating cash flow, the Rs 30.08 crore current-loans balance and investment valuation movements change after September 30, 2026.