Holmarc first-half profit reaches Rs 1.1622 crore as revenue rises

Holmarc Opto-Mechatronics Limited reported net profit of Rs 1.1622 crore for the half year ended 30 September 2026, up from Rs 25.37 lakh a year earlier, as revenue from operations increased 36.2% to Rs 22.0489 crore. The unaudited standalone results received an unmodified limited-review conclusion from the statutory auditor.

How did Holmarc’s first-half earnings change?

Holmarc’s net profit after tax rose by Rs 90.85 lakh year on year to Rs 1.1622 crore in the half year ended 30 September 2026, from Rs 25.37 lakh in the corresponding 2025 period. Basic and diluted earnings per share rose to Rs 1.16 from Rs 0.25, based on 1,00,50,000 equity shares.

Revenue from operations rose by Rs 5.8669 crore to Rs 22.0489 crore, compared with Rs 16.182 crore in the prior-year half. Total revenue, including other income, increased to Rs 22.251 crore from Rs 16.4059 crore, while other income declined to Rs 20.21 lakh from Rs 22.41 lakh. The reported top-line increase therefore came from operations rather than other income.

Profit before tax reached Rs 1.4264 crore, compared with Rs 21.78 lakh a year earlier. The tax charge was Rs 26.42 lakh, versus a tax credit of Rs 3.59 lakh in the previous corresponding half. The 2026 tax figure comprised current tax of Rs 35 lakh, partly offset by a Rs 8.58 lakh tax adjustment relating to the previous year.

What changed in Holmarc’s costs and sequential performance?

Holmarc’s total expenses increased to Rs 20.8246 crore in the September 2026 half from Rs 16.1881 crore a year before, an increase of Rs 4.6365 crore. That increase was below the Rs 5.8451 crore rise in total revenue, resulting in profit before tax of Rs 1.4264 crore compared with Rs 21.78 lakh in the prior-year period.

Employee benefit expenses were the largest reported cost at Rs 11.026 crore, up from Rs 9.796 crore. Material consumed increased to Rs 6.1738 crore from Rs 4.295 crore, and other expenses rose to Rs 4.3705 crore from Rs 2.7506 crore. Changes in inventories represented a negative expense of Rs 1.5151 crore, compared with a negative Rs 1.3582 crore in the earlier half.

Finance costs increased to Rs 7.93 lakh from Rs 1.08 lakh, while depreciation and amortisation was Rs 69.01 lakh, broadly unchanged from Rs 69.39 lakh. The September 2026 half also trailed the immediately preceding half ended 31 March 2026, when revenue from operations was Rs 26.0434 crore and net profit was Rs 3.8282 crore.

The comparison shows a different pattern across periods. Holmarc recorded year-on-year revenue growth of 36.2% in the September half, but revenue was Rs 3.9945 crore lower than in the March 2026 half. Net profit was Rs 2.666 crore below the Rs 3.8282 crore reported in that immediately preceding six-month period.

How did Holmarc’s balance sheet change by September 2026?

Holmarc’s total assets were Rs 44.2913 crore at 30 September 2026, compared with Rs 38.0718 crore at 31 March 2026. Shareholders’ funds increased to Rs 31.5049 crore from Rs 30.8452 crore, as reserves and surplus reached Rs 21.4549 crore from Rs 20.7952 crore. Share capital remained unchanged at Rs 10.05 crore.

Property, plant and equipment increased to Rs 15.9529 crore at 30 September from Rs 9.8261 crore at 31 March. Capital work-in-progress rose to Rs 33.97 lakh from Rs 21.45 lakh, while intangible assets increased to Rs 5.11 lakh from Rs 4.12 lakh. The balance-sheet movement accompanied Rs 3.9767 crore of fixed-asset purchases reported in the cash-flow statement.

Working-capital balances also rose during the six months. Inventories stood at Rs 8.0574 crore at 30 September 2026 against Rs 6.0201 crore at 31 March, while trade receivables were Rs 11.6143 crore compared with Rs 8.5114 crore. Together, these two balances increased by Rs 5.1402 crore.

Current liabilities increased to Rs 10.1085 crore from Rs 4.9342 crore at 31 March. Other current liabilities rose to Rs 7.3168 crore from Rs 3.2524 crore, short-term borrowings increased to Rs 1.5909 crore from Rs 8.09 lakh, and long-term borrowings rose to Rs 63.91 lakh from Rs 52.21 lakh.

What do Holmarc’s cash flows show about funding requirements?

Holmarc used Rs 2.2659 crore in operating activities in the half year ended 30 September 2026, compared with Rs 1.1804 crore used in the corresponding prior-year half. Cash generated from operations was negative Rs 1.4594 crore before tax payments, while net income tax paid was Rs 80.65 lakh.

The cash-flow statement records a Rs 3.1629 crore increase in trade receivables and a Rs 2.0373 crore increase in inventories. Those uses of cash were partly offset by a Rs 1.0892 crore increase in other current liabilities and a Rs 37.69 lakh reduction in short-term loans and advances.

Investing activities used Rs 2.1455 crore, compared with Rs 40.58 lakh in the year-earlier half. Fixed-asset purchases totalled Rs 3.9767 crore, partly offset by a Rs 1.6192 crore reduction in fixed deposits and earmarked bank balances and Rs 19.35 lakh of interest and other income.

Financing activities generated Rs 1.0452 crore, against Rs 27.83 lakh in the prior-year half. The company reported Rs 1.51 crore of short-term borrowing proceeds, Rs 11.70 lakh from long-term borrowings, finance costs of Rs 7.93 lakh and dividend payments of Rs 50.25 lakh. The dividend followed the Rs 0.50-per-share final dividend declared by shareholders on 1 September 2026.

What expansion actions has Holmarc approved?

Holmarc’s board approved a proposal on 11 November 2026 to establish a branch office in Dubai, United Arab Emirates, subject to applicable laws, rules and regulations. The company stated that the branch is intended to expand operations, strengthen its international presence and facilitate business development in the Middle East and Africa.

The board also approved a proposal to explore availing space in the Cochin Special Economic Zone in Kochi, Kerala, for business premises supporting export activities. The filing does not state an investment amount, commencement date or expected revenue contribution for either the Dubai branch proposal or the proposed Cochin Special Economic Zone premises.

Holmarc reported a single operating segment, the manufacture of scientific and engineering instruments for research, industry and education, and stated that it operates in India. Its unaudited standalone results were reviewed by the audit committee on 10 November 2026 and approved by the board on 11 November 2026.

Conclusion

Holmarc’s September 2026 half-year results show revenue from operations increasing 36.2% and net profit rising to Rs 1.1622 crore, while expenses grew by less than total revenue in absolute terms. The same filing shows that higher receivables, inventory and fixed-asset purchases absorbed cash, resulting in operating cash outflow of Rs 2.2659 crore and investing cash outflow of Rs 2.1455 crore.

The next disclosures to watch are progress on the Dubai branch proposal and the exploration of premises in the Cochin Special Economic Zone, both of which are subject to the conditions stated by the company. Future results will also show whether receivables of Rs 11.6143 crore, inventories of Rs 8.0574 crore and the higher borrowing balances change as these plans develop.