Highness Microelectronics reports Rs 24.69 crore H1 profit

Highness Microelectronics Limited reported profit after tax of Rs 24.69 crore for the half year ended September 30, 2026, against a loss of Rs 5.34 lakh in the corresponding half year ended September 2025. Total income rose to Rs 124.55 crore from Rs 60.70 crore, while net cash used in operating activities was Rs 145.79 crore.

How did Highness Microelectronics perform in the September 2026 half year?

Highness Microelectronics returned to profit in the half year ended September 30, 2026, reporting profit after tax of Rs 24.69 crore after a Rs 5.34 lakh loss in the corresponding prior-year half. Total income increased by Rs 63.84 crore to Rs 124.55 crore, comprising Rs 120.01 crore of income and Rs 4.45 crore of other income.

Highness Microelectronics recorded total expenses of Rs 91.65 crore, compared with Rs 61.44 crore a year earlier. Tax expense was Rs 8.20 crore in the latest half year, comprising current tax of Rs 8.51 crore and deferred-tax credit of Rs 3.12 lakh. Basic earnings per share were Rs 47.82 and diluted earnings per share were Rs 47.30, based on 51.64 lakh equity shares of face value Rs 10 each.

Which expenses changed during the September 2026 half year?

Highness Microelectronics reported lower material costs but higher employee-benefit and other expenses in the September 2026 half year. Material consumed or cost of goods purchased fell to Rs 14.70 crore from Rs 43.39 crore, while employee-benefit expense rose to Rs 26.10 crore from Rs 10.62 crore.

Highness Microelectronics recorded an inventory-change expense of Rs 2.71 crore, compared with a credit of Rs 13.02 crore in the corresponding prior-year half. Finance costs increased to Rs 4.85 crore from Rs 3.80 crore, whereas depreciation and amortisation declined to Rs 5.22 crore from Rs 8.08 crore.

Highness Microelectronics stated that it operates in one business segment: the design, development, integration, assembly and manufacture of digital imaging solutions. The half-year results were prepared under Accounting Standard 25, Interim Financial Reporting, and the filing cited the exemption from compulsory Indian Accounting Standards adoption for companies listed on the SME exchange.

What changed in Highness Microelectronics' balance sheet?

Highness Microelectronics' total assets were Rs 436.22 crore at September 30, 2026, compared with Rs 458.77 crore at March 31, 2026. Cash and cash equivalents fell to Rs 16.82 crore from Rs 218.06 crore, while trade receivables rose to Rs 137.34 crore from Rs 103.66 crore.

Other current assets increased to Rs 105.29 crore at September 30 from Rs 7.34 crore at March 31, and short-term loans and advances rose to Rs 23.18 crore from Rs 6.01 crore. Inventories declined to Rs 82.04 crore from Rs 84.33 crore, while the company reported capital work in progress of Rs 19.89 lakh at the half-year end.

Highness Microelectronics' long-term borrowings increased to Rs 27.00 crore from Rs 18.77 crore, while short-term borrowings fell to Rs 43.85 crore from Rs 60.66 crore. Reserves and surplus increased to Rs 239.17 crore from Rs 220.01 crore, and share capital remained Rs 51.64 crore over the two balance-sheet dates.

Why was Highness Microelectronics' operating cash flow negative?

Highness Microelectronics used Rs 145.79 crore in operating activities for the period ended September 30, 2026, despite reporting operating profit before working-capital changes of Rs 43.11 crore. The filing attributes the operating cash outflow to movements in receivables, other current assets, loans and advances, and trade payables.

Trade receivables accounted for a Rs 33.69 crore working-capital outflow, short-term loans and advances for Rs 17.17 crore, and other current assets for Rs 97.94 crore. Trade payables also decreased by Rs 34.65 crore, while inventories generated Rs 2.30 crore of cash as their balance fell from Rs 84.33 crore to Rs 82.04 crore.

Highness Microelectronics used Rs 36.49 crore in investing activities, including Rs 37.20 crore spent on fixed assets and capital advances, partly offset by Rs 7.13 lakh of interest received. Financing activities used Rs 18.97 crore, resulting in a net cash decrease of Rs 201.24 crore from the opening cash balance of Rs 218.06 crore to Rs 16.82 crore.

What capital actions has Highness Microelectronics disclosed?

Highness Microelectronics said it completed the allotment of its initial public offering during the year, including a fresh issue of 16.54 lakh equity shares and an offer for sale of 1.52 lakh shares at Rs 120 per share. Its shares were listed on the SME platform of BSE Limited with effect from April 2, 2026.

Highness Microelectronics also approved a proposed preferential issue of up to 3.44 lakh equity shares at Rs 315 each, including a premium of Rs 305 per share, for an aggregate Rs 10.84 crore. The proposal is subject to member and applicable statutory and regulatory approvals, with an extraordinary general meeting scheduled for December 4, 2026.

The disclosed post-issue shareholding pattern would raise total equity shares to 55.08 lakh from 51.64 lakh if the proposed issue is completed. Promoter and promoter-group holdings would remain 33.54 lakh shares but represent 60.90% of the enlarged equity capital, compared with 64.96% before the issue.

Conclusion

The September 2026 half-year filing shows Highness Microelectronics moved to a Rs 24.69 crore profit as total income rose to Rs 124.55 crore from Rs 60.70 crore a year earlier. At the same time, operating cash flow was negative by Rs 145.79 crore, and closing cash declined to Rs 16.82 crore as receivables and other current assets increased.

The next disclosed event is the December 4, 2026 extraordinary general meeting for the proposed Rs 10.84 crore preferential issue. Subsequent financial disclosures will show whether the issue receives the required approvals and how trade receivables of Rs 137.34 crore, other current assets of Rs 105.29 crore and cash balances develop.