HMT September-quarter profit falls as other income exceeds revenue

HMT Limited reported standalone profit after tax of Rs 1.23 crore for the quarter ended September 30, 2026, down from Rs 11.81 crore in the preceding quarter, as other income of Rs 14.24 crore exceeded revenue from operations of Rs 7.50 crore. Profit was marginally higher than Rs 1.21 crore a year earlier.

Why did HMT's September-quarter profit fall despite higher operating revenue?

HMT's September-quarter profit fell sequentially because total expenses increased much faster than total income, despite a rise in revenue from operations to Rs 7.50 crore. Profit before tax and profit after tax were both Rs 1.23 crore for the quarter ended September 30, 2026, compared with Rs 11.81 crore in the quarter ended June 30, 2026. The filing reported neither exceptional items nor tax expense for the latest quarter.

Revenue from operations rose from Rs 5.23 crore in the June 2026 quarter and Rs 5.97 crore in the September 2025 quarter. This was an increase of Rs 2.27 crore sequentially and Rs 1.53 crore year on year. Total expenses, however, rose to Rs 20.51 crore from Rs 7.55 crore in June 2026, an increase of Rs 12.96 crore, while total income increased by Rs 2.38 crore to Rs 21.74 crore.

How reliant was HMT on other income in the September quarter?

HMT relied more on other income than operating revenue during the September 2026 quarter, reporting Rs 14.24 crore of other income against Rs 7.50 crore of revenue from operations. Other income equated to about 65.5% of total income of Rs 21.74 crore. The reported income mix was therefore led by the other-income line rather than the operating-revenue line.

Other income increased by Rs 0.11 crore from Rs 14.13 crore in the June 2026 quarter, but was Rs 1.03 crore below the Rs 15.27 crore reported a year earlier. Operating revenue moved in the opposite direction, increasing both sequentially and year on year. Other income remained larger than revenue from operations in all three reported quarters, including June 2026, when the two figures were Rs 14.13 crore and Rs 5.23 crore respectively.

HMT did not provide a line-by-line composition of the Rs 14.24 crore quarterly other-income figure in its standalone results. Its cash-flow statement for the half year ended September 30, 2026 recorded interest income of Rs 17.94 crore, compared with Rs 17.89 crore in the corresponding prior-year half. The cash-flow disclosure identifies interest income in the reconciliation but does not separately reconcile it with quarterly other income.

Which expense line drove HMT's sequential profit change?

HMT's other-expenses line drove most of the sequential change, rising to Rs 15.91 crore in the September 2026 quarter from Rs 3.45 crore in the June 2026 quarter. The Rs 12.46 crore increase accounted for most of the Rs 12.96 crore rise in total expenses. Other expenses were Rs 16.40 crore in the September 2025 quarter, making the latest figure Rs 0.49 crore lower year on year.

Cost of materials consumed was Rs 2.50 crore in the September quarter, compared with Rs 2.07 crore in June 2026 and Rs 1.43 crore a year earlier. Employee-benefit expense declined to Rs 1.36 crore from Rs 1.52 crore sequentially and Rs 1.53 crore a year earlier. Inventory changes were Rs 0.62 crore, depreciation and amortisation expense was Rs 0.02 crore, and finance costs were reported at zero.

The year-on-year comparison was less pronounced than the sequential movement. Total expenses increased by Rs 0.48 crore from Rs 20.03 crore in the September 2025 quarter, while total income rose by Rs 0.50 crore from Rs 21.24 crore. Profit after tax consequently increased by Rs 0.02 crore year on year, to Rs 1.23 crore from Rs 1.21 crore.

What do HMT's first-half standalone results show?

HMT reported standalone profit after tax of Rs 13.04 crore for the half year ended September 30, 2026, compared with Rs 13.35 crore in the corresponding prior-year period. The first-half result included Rs 11.81 crore of profit in the June 2026 quarter and Rs 1.23 crore in the September 2026 quarter. The half-year profit was therefore Rs 0.31 crore below the prior-year figure.

Revenue from operations for the six months rose to Rs 12.73 crore from Rs 12.12 crore in the corresponding half of 2025. Other income fell to Rs 28.37 crore from Rs 30.29 crore, causing total income to decline to Rs 41.10 crore from Rs 42.41 crore. Total expenses fell to Rs 28.06 crore from Rs 29.06 crore, but the Rs 1.31 crore income decline exceeded the Rs 1.00 crore expense reduction.

Basic and diluted earnings per share were Rs 0.37 for the half year ended September 30, 2026, compared with Rs 0.38 in the corresponding prior-year period. For the September quarter alone, basic and diluted earnings per share were Rs 0.03, unchanged from September 2025 and below Rs 0.33 in June 2026. Paid-up equity share capital remained Rs 355.60 crore, based on a face value of Rs 10 per share.

What do HMT's balance sheet and review report disclose?

HMT reported total standalone assets of Rs 1,384.32 crore as at September 30, 2026, compared with Rs 1,360.09 crore at March 31, 2026. Investments were unchanged at Rs 719.78 crore across the two dates. Loans rose to Rs 369.91 crore from Rs 364.31 crore, while cash and cash equivalents increased to Rs 5.42 crore from Rs 2.75 crore.

Inventories declined to Rs 6.62 crore at September 30, 2026, from Rs 9.62 crore at March 31, 2026, while trade receivables increased to Rs 6.13 crore from Rs 5.97 crore. Bank balances other than cash and cash equivalents were Rs 154.22 crore, compared with Rs 154.86 crore at the financial year-end. Other equity was Rs 149.12 crore at September 30, 2026, against Rs 136.07 crore at March 31, 2026.

The standalone statement is unaudited and was subjected to a limited review by MKPS & Associates LLP. The reviewer stated that nothing had come to its attention to indicate that the results failed to make the disclosures required under Securities and Exchange Board of India listing regulations. HMT also said segment information under Indian Accounting Standard 108 is disclosed in its consolidated financial statements rather than in the standalone statement.

Conclusion

HMT remained profitable in the September 2026 quarter, reporting Rs 1.23 crore of standalone profit after tax, but this was substantially below the Rs 11.81 crore reported in the June quarter. Revenue from operations improved to Rs 7.50 crore, while other income of Rs 14.24 crore remained the larger contributor to total income and other expenses rose to Rs 15.91 crore.

The unresolved point is the composition and recurrence of the Rs 14.24 crore other-income line, which HMT did not break down in the standalone quarterly statement. Readers can also assess the consolidated financial statements for operating-segment information, because HMT states that segment disclosure is provided there rather than in its standalone results.