HMT half-year loss widens to Rs 86.72 crore as income falls

HMT Limited reported a consolidated loss of Rs 86.72 crore for the half year ended 30 September 2026, widening from Rs 66.85 crore a year earlier, as revenue from operations fell to Rs 45.26 crore from Rs 50.38 crore. The unaudited result covers HMT and its subsidiaries.

Why did HMT's half-year loss widen?

HMT's loss before tax from continuing operations widened by Rs 19.87 crore to Rs 86.72 crore in the half year ended 30 September 2026. The corresponding loss was Rs 66.85 crore in the half year ended 30 September 2025. The filing records no exceptional items, share of associate or joint-venture profit or loss, or tax expense in either half-year period.

Total income declined by Rs 5.41 crore to Rs 73.85 crore, while total expenses increased by Rs 14.46 crore to Rs 160.57 crore. This combination increased the gap between income and expenses to Rs 86.72 crore, compared with Rs 66.85 crore a year earlier. HMT reported no discontinued-operations profit or loss for the six months.

The loss for the period was also Rs 86.72 crore because the statement showed no tax expense. Total comprehensive loss was Rs 85.44 crore, compared with Rs 68.44 crore in the previous corresponding period, after other comprehensive income of Rs 1.28 crore. In the 2025 half year, HMT had reported other comprehensive loss of Rs 1.59 crore.

How did HMT's income and expenses change?

HMT's revenue from operations decreased by Rs 5.12 crore to Rs 45.26 crore in the latest half year, while other income declined by Rs 0.29 crore to Rs 28.59 crore. Revenue accounted for Rs 45.26 crore of total income of Rs 73.85 crore, compared with Rs 50.38 crore of total income of Rs 79.26 crore in the period ended 30 September 2025.

HMT's finance costs rose to Rs 34.19 crore from Rs 33.60 crore, while other expenses increased to Rs 67.81 crore from Rs 50.93 crore. Employee-benefit expense fell to Rs 26.52 crore from Rs 29.01 crore and material-consumption cost declined to Rs 11.46 crore from Rs 19.85 crore. Purchase of stock in trade, however, rose to Rs 9.90 crore from Rs 1.30 crore.

The basic and diluted loss per share from continuing and discontinued operations was Rs 2.44 for the six months, compared with Rs 1.88 a year earlier. Paid-up equity share capital remained Rs 355.60 crore at 30 September 2026 and 30 September 2025, with a face value of Rs 10 a share. The larger per-share loss therefore coincided with a higher reported consolidated loss and unchanged paid-up capital.

What does HMT's balance sheet show?

HMT reported negative equity attributable to equity holders of Rs 2,112.10 crore at 30 September 2026, compared with negative Rs 2,026.67 crore at 31 March 2026. Other equity became more negative at Rs 2,467.70 crore from negative Rs 2,382.27 crore, while paid-up equity share capital was unchanged at Rs 355.60 crore.

Current borrowings were Rs 1,037.20 crore at 30 September 2026, up from Rs 1,033.33 crore at 31 March 2026. Non-current financial liabilities were Rs 100.04 crore, almost unchanged from Rs 100.03 crore. Non-current provisions increased to Rs 20.91 crore from Rs 20.78 crore over the same period.

Total assets declined to Rs 503.71 crore at 30 September 2026 from Rs 535.63 crore at 31 March 2026. Inventories rose to Rs 86.28 crore from Rs 26.61 crore, while trade receivables fell to Rs 81.29 crore from Rs 93.24 crore. Cash and cash equivalents decreased to Rs 8.12 crore from Rs 26.05 crore.

How did HMT perform in the September 2026 quarter?

HMT recorded a consolidated loss of Rs 57.51 crore for the quarter ended 30 September 2026, compared with a Rs 39.08 crore loss in the quarter ended 30 September 2025. Revenue from operations was Rs 16.33 crore, down from Rs 25.83 crore a year earlier and from Rs 28.93 crore in the quarter ended 30 June 2026.

Total income in the September 2026 quarter was Rs 31.85 crore, compared with Rs 41.98 crore in the year-earlier quarter and Rs 42.30 crore in the preceding quarter. Total expenses rose to Rs 89.06 crore from Rs 81.06 crore a year earlier. The resulting quarterly loss before tax was Rs 57.51 crore, versus Rs 29.21 crore in the June 2026 quarter.

Finance costs in the September quarter were Rs 16.49 crore, compared with Rs 15.94 crore a year earlier. Other expenses rose to Rs 50.03 crore from Rs 34.04 crore. HMT reported total comprehensive loss of Rs 56.84 crore for the quarter after other comprehensive income of Rs 0.67 crore.

What did the auditor say about HMT's consolidated results?

The independent auditor reviewed HMT's consolidated unaudited results for the quarter and half year ended 30 September 2026, with the report dated 6 November 2026. The auditor said nothing had come to its attention to suggest that the statement omitted required disclosures or contained a material misstatement. It also said a review has a substantially narrower scope than an audit and does not provide audit assurance.

The consolidation includes subsidiaries HMT Machine Tools Limited, HMT (International) Limited and HMT Watches Limited, plus joint venture Sudmo BMT Process Engineers (India) Limited. The auditor said it did not independently review the three subsidiaries' financial results and relied on reports from other auditors. Its conclusion was not modified in respect of those entities or the joint venture.

The auditor's report stated that the three subsidiaries reflected total assets of Rs 503.71 crore at 30 September 2026 and total comprehensive loss of Rs 85.44 crore for the six months. It also stated that the joint venture had total assets of Rs 39 lakh and net profit of Rs 0.52 lakh for the six months ended 30 September 2026.

Conclusion

HMT's reported financial position at 30 September 2026 combined a wider half-year loss of Rs 86.72 crore, lower revenue from operations of Rs 45.26 crore and negative equity of Rs 2,112.10 crore. The loss widened as total income fell to Rs 73.85 crore and total expenses increased to Rs 160.57 crore.

The next reported result will show whether the September-quarter loss of Rs 57.51 crore, finance costs of Rs 16.49 crore and current borrowings of Rs 1,037.20 crore change. HMT's filing does not disclose a turnaround target, financing plan or scheduled corporate event after the 30 September 2026 results.