Hindoostan Mills posts Rs 74.41 lakh Q2 loss on engineering

Hindoostan Mills Limited reported a Rs 74.41 lakh net loss for the quarter ended September 30, 2026, as its continuing Engineering Division recorded a Rs 1.2191 crore pre-tax loss that exceeded a Rs 47.50 lakh profit from discontinued textile operations. The net loss narrowed from Rs 1.4769 crore a year earlier but widened from Rs 58.26 lakh in the preceding quarter.

Why did Hindoostan Mills report a Q2 net loss?

Hindoostan Mills reported a Q2 net loss because continuing-operations total income of Rs 2.1976 crore was below total expenses of Rs 3.4167 crore in the quarter ended September 30, 2026. The resulting pre-tax loss from continuing operations was Rs 1.2191 crore, compared with a Rs 63.55 lakh loss in the quarter ended September 30, 2025.

The overall net loss nevertheless narrowed year on year to Rs 74.41 lakh from Rs 1.4769 crore because discontinued textile operations moved to a Rs 47.50 lakh profit before tax from an Rs 84.14 lakh loss before tax. The quarterly combined outcome worsened sequentially, however, from a Rs 58.26 lakh net loss in the quarter ended June 30, 2026.

The continuing-operations loss also widened sharply from Rs 12.11 lakh in the preceding quarter. The June 2026 quarter included total income of Rs 3.1453 crore, including Rs 1.1238 crore of other income, whereas September-quarter other income was Rs 60,000.

How did Hindoostan Mills' Engineering Division revenue change?

Hindoostan Mills' net sales and income from continuing operations fell to Rs 2.0871 crore in the September 2026 quarter from Rs 3.3121 crore a year earlier. This Rs 1.225 crore year-on-year reduction occurred in the Engineering Division, which the company identifies as its only segment requiring no separate segment disclosure.

Other operating income rose to Rs 10.45 lakh from Rs 6.42 lakh in the year-earlier quarter. Total revenue from continuing operations, comprising net sales and other operating income, therefore declined to Rs 2.1916 crore from Rs 3.3763 crore, while increasing from Rs 2.0215 crore in the June 2026 quarter.

For the half year ended September 30, 2026, net sales and income from continuing operations were Rs 4.0769 crore, compared with Rs 6.8436 crore in the prior-year half. Total revenue from operations was Rs 4.2131 crore, down from Rs 6.9528 crore, while other income fell to Rs 1.1298 crore from Rs 1.7038 crore.

Which costs were reported in continuing operations?

Hindoostan Mills reported employee-benefit expense of Rs 1.3042 crore in the September 2026 quarter, compared with Rs 1.2864 crore a year earlier. Cost of materials consumed declined to Rs 87.89 lakh from Rs 1.4386 crore, alongside the fall in continuing-operations sales.

Other expenses were Rs 86.28 lakh, down from Rs 90.62 lakh in the September 2025 quarter, and depreciation and amortisation were Rs 34.51 lakh, down from Rs 38.64 lakh. Finance cost decreased to Rs 55,000 from Rs 1.81 lakh, but total expenses of Rs 3.4167 crore still exceeded the quarter's Rs 2.1976 crore of total income.

For the half year, employee-benefit expense increased to Rs 2.5605 crore from Rs 2.4092 crore, while materials consumed fell to Rs 1.4633 crore from Rs 3.1719 crore. Continuing operations consequently reported a Rs 1.3402 crore pre-tax loss for the half year ended September 30, 2026, compared with a Rs 41.15 lakh pre-tax profit in the corresponding prior-year half.

What did discontinued textile operations contribute?

Hindoostan Mills' discontinued textile operations generated a Rs 47.50 lakh profit before tax in the September 2026 quarter, with income of Rs 85.94 lakh and expenses of Rs 38.44 lakh. In the September 2025 quarter, the operation reported income of Rs 1.26 lakh and expenses of Rs 85.40 lakh, producing an Rs 84.14 lakh loss before tax.

For the half year ended September 30, 2026, the discontinued operation made a Rs 1.35 lakh profit before tax, compared with an Rs 3.0792 crore loss in the prior-year half. Half-year income declined to Rs 87.14 lakh from Rs 2.6098 crore, but expenses declined more sharply to Rs 85.79 lakh from Rs 5.689 crore.

Hindoostan Mills presents the textile result separately under Indian Accounting Standard 105 for discontinued operations. The company said land and buildings related to the textile division remain within property, plant and equipment because management has no plan to dispose of them and may put them to alternative use.

What other financial and legal matters did Hindoostan Mills disclose?

Hindoostan Mills reported cash and cash equivalents of Rs 1.3637 crore at September 30, 2026, compared with Rs 1.3626 crore at March 31, 2026. Its half-year cash-flow statement showed Rs 1.0402 crore of net cash used in operating activities, compared with Rs 6.1065 crore used in the half year ended September 30, 2025.

The company disclosed that Rs 1.2773 crore of interest subsidy recognised under the New Textile Policy 2012 for October 2016 to September 2019 remains outstanding. Management said the subsidy is under process with the government department and is receivable against submitted subsidy claims.

Hindoostan Mills has made a Rs 63.98 lakh provision in relation to an earlier joint property-development transaction, while the other party's claim is Rs 15.9739 crore plus interest. Appeals by both parties against a Bombay High Court single-bench decision remain pending before the High Court's division bench, and management stated that it expects no further liability.

Conclusion

Hindoostan Mills' Rs 74.41 lakh September-quarter net loss was lower than the Rs 1.4769 crore loss a year earlier because discontinued textiles generated a Rs 47.50 lakh profit. The improvement did not offset the continuing Engineering Division's Rs 1.2191 crore pre-tax loss, following a decline in net sales and income to Rs 2.0871 crore.

The next reported results will show whether the Engineering Division can change the half-year pattern, in which net sales and income fell to Rs 4.0769 crore from Rs 6.8436 crore. Investors can also monitor the unresolved Rs 1.2773 crore textile-policy subsidy and the pending High Court appeals concerning the Rs 15.9739 crore property-development claim.