Indian Card Clothing profit lifted by Baner property sale

The Indian Card Clothing Company Limited posted consolidated net profit of Rs 4.29 crore for the quarter ended 30 September 2026, as a Rs 6.85 crore gain on the sale of its Baner, Pune investment property outweighed a Rs 2.05 crore loss before exceptional items. Its Card Clothing segment loss widened year on year.

What lifted Indian Card Clothing's September-quarter profit?

Indian Card Clothing's September-quarter profit was lifted by a one-time property-sale gain rather than its operating result. Profit before tax was Rs 4.80 crore after the company recorded Rs 6.85 crore of exceptional income from the Baner investment-property sale; before exceptional items, it reported a Rs 2.05 crore loss.

Indian Card Clothing completed the Baner, Pune property sale during the quarter for total consideration of Rs 13.20 crore. The Rs 6.85 crore gain was absent in both the preceding June 2026 quarter and the September 2025 quarter. Net profit was Rs 4.29 crore, compared with Rs 4.56 crore in June 2026 and Rs 5.41 crore a year earlier, while tax expense was Rs 0.51 crore.

Revenue from operations rose from Rs 9.78 crore in June 2026 and Rs 10.73 crore a year earlier to Rs 13.14 crore. Total income nonetheless declined year on year to Rs 15.24 crore from Rs 22.11 crore because other income fell to Rs 2.10 crore from Rs 11.38 crore. Total expenses increased to Rs 17.29 crore from Rs 15.48 crore a year earlier.

How did Indian Card Clothing's Card Clothing business perform?

Indian Card Clothing's Card Clothing segment recorded a Rs 2.48 crore loss before interest and tax in the September 2026 quarter, compared with a Rs 2.37 crore loss in the September 2025 quarter. The loss widened by Rs 0.11 crore year on year even as segment revenue rose to Rs 13.71 crore from Rs 11.09 crore.

The segment loss was narrower than the Rs 3.12 crore loss in the June 2026 quarter, when segment revenue was Rs 9.92 crore. For the half year ended 30 September 2026, Card Clothing revenue increased to Rs 23.63 crore from Rs 20.85 crore a year earlier, while the loss widened to Rs 5.60 crore from Rs 5.33 crore.

Management said the carding business continues to face headwinds in the Indian textile industry because of global geopolitical disturbances and a global economic slowdown. Management expects a textile-industry recovery by the end of financial year 2026-27, but the results contain no numerical revenue, margin or profit target.

Card Clothing segment assets stood at Rs 64.69 crore on 30 September 2026, compared with Rs 58.86 crore at 31 March 2026. Segment liabilities rose to Rs 20.60 crore from Rs 17.14 crore over the same period, according to the consolidated segment disclosure.

What changed in Indian Card Clothing's Realty segment?

Indian Card Clothing's Realty segment generated Rs 0.88 crore of profit before interest and tax in the September quarter, down from Rs 9.25 crore a year earlier. Segment revenue was Rs 1.53 crore, compared with Rs 11.01 crore in the September 2025 quarter and Rs 9.91 crore in the June 2026 quarter.

For the half year ended 30 September 2026, Realty revenue fell to Rs 11.44 crore from Rs 18.07 crore a year earlier, while segment profit declined to Rs 9.99 crore from Rs 15.39 crore. The Baner transaction was reported separately as an exceptional item, rather than within segment profit before interest and tax, separating it from the operating segment result.

Realty segment assets increased to Rs 320.35 crore at 30 September 2026 from Rs 306.83 crore at 31 March 2026. Segment liabilities rose to Rs 8.28 crore from Rs 2.53 crore over the same period. The filing provides the Baner property's Rs 13.20 crore sale consideration and Rs 6.85 crore gain, but no further schedule explaining the asset movement.

What do Indian Card Clothing's half-year cash flows and balance sheet show?

Indian Card Clothing reported half-year profit before tax of Rs 10.43 crore but used Rs 6.60 crore in operating activities for the six months ended 30 September 2026. The cash-flow statement deducts the Rs 6.85 crore exceptional property-sale gain and shows an operating loss before working-capital changes of Rs 5.25 crore.

Working-capital movements included increases of Rs 1.58 crore in trade receivables, Rs 1.62 crore in inventories and Rs 1.78 crore in other current assets and bank balances. These movements were partly offset by a Rs 3.48 crore increase in trade payables. Operating cash outflow was Rs 8.02 crore in the comparable half year ended 30 September 2025.

Indian Card Clothing received Rs 12.69 crore from the investment-property sale and spent Rs 3.33 crore on property, plant, equipment and intangible assets during the half year. It also purchased investments worth Rs 175.98 crore and sold investments worth Rs 157.67 crore, based on the consolidated cash-flow statement.

Total assets were Rs 385.90 crore at 30 September 2026, up from Rs 366.56 crore at 31 March 2026. Total equity was Rs 351.91 crore and total liabilities were Rs 33.99 crore at the September reporting date. The board approved the unaudited consolidated results on 3 November 2026 after audit committee review, and the statutory auditor performed a limited review.

Conclusion

Indian Card Clothing's September-quarter outcome combined higher Card Clothing revenue with a wider year-on-year segment loss, lower Realty revenue and a property-sale gain that converted a pre-exceptional loss into Rs 4.29 crore of net profit. The Rs 6.85 crore exceptional gain exceeded the Rs 2.05 crore loss before exceptional items, making the Baner sale central to reported earnings.

The disclosed point to watch is management's expectation of a textile-industry recovery by the end of financial year 2026-27. Subsequent results can show whether the Card Clothing half-year loss of Rs 5.60 crore narrows and whether operating cash flow improves from the Rs 6.60 crore outflow recorded in the six months ended 30 September 2026.