Hemadri Cements Q1 FY27: Net loss ₹60 lakh in liquidation

Key takeaway from the June 2026 quarter

Hemadri Cements Limited (BSE: 502133) reported a net loss of ₹0.6008 crore for the quarter ended June 30, 2026 (Q1 FY27). The result marked a sharp reversal from the ₹2.7054 crore net profit reported in the immediately preceding quarter (Q4 FY26). The company reported zero revenue from operations, consistent with the cessation of its core cement business activities. The quarter’s numbers were presented in the context of ongoing voluntary liquidation, which has been effective since July 14, 2025.

Voluntary liquidation and accounting basis

Hemadri Cements has been in voluntary liquidation since July 14, 2025, and its financial results have been prepared on a liquidation basis rather than a going concern basis. The company cited the ongoing proceedings under the Insolvency and Bankruptcy Code, 2016, as the reason for adopting the liquidation basis of preparation. This matters for investors because liquidation-basis financials are intended to reflect recoverable values and settlement of obligations, not the performance of a continuing operating business. In practical terms, the company’s quarterly financial movement is now largely driven by other income, liquidation-related receipts, and the cost of maintaining the corporate and liquidation process.

No operating revenue as core activity remains halted

For Q1 FY27, revenue from operations was reported at ₹0 crore. The same metric was ₹0 crore in Q4 FY26 and ₹0 crore in Q1 FY26, showing the absence of operating activity over multiple quarters. The company has also indicated that it is focusing on asset auctions as part of the liquidation process. With operations discontinued, changes in reported profit or loss are primarily explained by fluctuations in other income and ongoing expenses.

Income collapses quarter-on-quarter

Total income for Q1 FY27 stood at ₹0.0736 crore, and the company stated it was derived entirely from other income. This compared with ₹8.2897 crore in Q4 FY26, highlighting the extent to which the previous quarter’s profitability was supported by non-operating income rather than operating sales. For comparison, total income in Q1 FY26 was ₹0.3996 crore, also at a level far below Q4 FY26. The sharp quarter-on-quarter drop in total income was one of the main drivers behind the move into a net loss in Q1 FY27.

Expenses remain meaningful despite nil sales

Total expenses in Q1 FY27 were ₹0.6744 crore, compared with ₹1.7668 crore in Q4 FY26 and ₹3.2652 crore in Q1 FY26. The company’s Q1 FY27 expenses were primarily driven by power and fuel costs of ₹0.2843 crore and other expenses of ₹0.3901 crore. Even with operations stopped, such costs can reflect site upkeep, utility connections, or liquidation-period obligations, as reported in the quarterly results. The combination of low income and continuing expenses resulted in the quarterly net loss.

Tax line: large charge in Q4 FY26, none in Q1 FY27

Hemadri Cements reported no tax expense in Q1 FY27. In contrast, the prior quarter (Q4 FY26) included a substantial tax expense of ₹3.8175 crore, which the company said contributed to the lower net profit despite higher pre-tax profits in that period. This detail is important when reading Q4 FY26 versus Q1 FY27 because both quarters were influenced by one-off or non-operating lines rather than recurring operating performance.

Snapshot of key quarterly numbers

The company disclosed the following summary metrics across three comparable quarters.

Interim distribution to shareholders begins

According to Note 3 of the financial statement, the liquidator initiated the process of interim distribution to equity shareholders at face value of ₹10 per share in July 2026. The company also disclosed that proceeds of ₹10 per share have been distributed to equity shareholders as part of the voluntary liquidation process.

The liquidator completed payments totaling ₹0.7253 crore to 4,712 shareholders holding shares in demat format on July 20 and July 21, 2026. This is a process update that directly affects shareholders, and it signals that liquidation proceeds are being returned to investors in accordance with the distribution plan.

Trading suspension on BSE

The company’s trading has been suspended from BSE since November 24, 2025. The stated context is the company’s voluntary liquidation status that commenced on July 14, 2025. For market participants, this means price discovery and liquidity through normal exchange trading are not available, and shareholder outcomes depend more on liquidation actions and distributions than on operating turnaround expectations.

FY26 context: loss narrows, supported by non-operating gains

For the financial year ended March 31, 2026 (FY26), Hemadri Cements reported a net loss of ₹5.0842 crore and total income of ₹8.9646 crore. The company also reported that this was an improvement from a net loss of ₹27.06 crore in FY25. It disclosed that the improvement was partly driven by a one-time gain of ₹8.06 crore from an e-auction of land and assets that realized ₹42.77 crore. The board approved the audited results on May 29, 2026, and the statutory auditors, S B S B and Associates, issued an unmodified opinion on the audited financial results.

What investors should track next

With revenue from operations remaining at ₹0 crore, the key variables for upcoming periods are likely to be other income, liquidation-related receipts, and the expense run-rate during the liquidation process. Shareholders will also watch for further updates on interim or final distributions and the pace of asset monetisation. The company has already started interim payouts at face value, and the disclosed July 2026 demat payments provide a concrete timeline of liquidation progress. Any further official communication from the liquidator on additional distributions or asset auction outcomes will be central to investor understanding of recovery amounts.

Conclusion

Hemadri Cements’ Q1 FY27 result reflected the realities of a company in voluntary liquidation: nil operating revenue, lower other income versus the prior quarter, and ongoing expenses that pushed the quarter into a ₹0.6008 crore net loss. The more consequential development for shareholders was the start of interim distributions at ₹10 per share, with payments already completed for thousands of demat holders in July 2026. The next set of updates is expected to hinge on liquidation milestones, including asset sales and any further distributions communicated by the liquidator.