International Conveyors posts Q2 loss after FVTPL valuation losses

International Conveyors Limited posted a consolidated loss after tax of Rs 68 lakh for the quarter ended September 30, 2026, as negative other income of Rs 20.78 crore outweighed revenue from operations of Rs 82.42 crore. International Conveyors said unrealised fair-value losses on financial assets measured at fair value through profit or loss, or FVTPL, primarily caused the negative other-income result.

What caused International Conveyors' Q2 loss?

International Conveyors' Q2 loss was primarily caused by unrealised mark-to-market, or MTM, fair-valuation losses on FVTPL financial assets. The company said in its results notes that these losses, recognised under Indian Accounting Standard 109, were the primary reason other income was negative Rs 20.78 crore in the quarter ended September 30, 2026.

The other-income line changed sharply from positive Rs 147.05 crore in the preceding June 2026 quarter to negative Rs 20.78 crore in the September quarter. That movement outweighed the increase in revenue, taking consolidated profit before tax from Rs 151.85 crore in June to a loss before tax of Rs 86 lakh in September. No exceptional item was reported in either quarter.

International Conveyors consequently reported a consolidated loss after tax of Rs 68 lakh for the September quarter, compared with profit after tax of Rs 119.82 crore in June 2026 and a loss after tax of Rs 17.36 crore a year earlier. The September-quarter tax line included current tax of Rs 6.27 crore and a deferred-tax credit of Rs 6.44 crore, resulting in a net tax credit of Rs 17 lakh.

How much did International Conveyors' operating revenue grow?

International Conveyors' consolidated revenue from operations rose to Rs 82.42 crore in the September 2026 quarter, from Rs 35.32 crore in the June 2026 quarter and Rs 45.30 crore in the September 2025 quarter. The sequential increase was Rs 47.10 crore, but it did not compensate for the Rs 167.83 crore sequential deterioration in other income.

Conveyor belts supplied the largest share of consolidated segment revenue at Rs 69.66 crore in the September quarter. Trading goods contributed Rs 12.01 crore, wind energy contributed Rs 69 lakh and unallocated revenue was Rs 11 lakh. Segment revenue totalled Rs 82.47 crore before eliminating inter-segment revenue of Rs 5 lakh, reconciling to reported revenue from operations of Rs 82.42 crore.

The filing identifies conveyor belts, wind energy, trading goods and investment as reportable segments. It also states that segment results include interest income and other income attributable to the respective segments, while investment-segment results include finance costs relating to that segment. The company did not quantify the FVTPL valuation loss by individual segment in the results note.

Which costs changed in International Conveyors' September quarter?

International Conveyors' consolidated total expenses increased to Rs 62.50 crore in the September quarter, from Rs 30.52 crore in June 2026 and Rs 37.52 crore a year earlier. Revenue exceeded total expenses by Rs 19.92 crore before the negative other-income line, showing why the Rs 20.78 crore valuation-related charge was decisive to the reported loss.

Cost of materials consumed was Rs 27.11 crore, compared with Rs 26.18 crore in June. Employee-benefit expense rose to Rs 3.06 crore from Rs 2.86 crore, while finance costs increased to Rs 2.71 crore from Rs 1.87 crore. Other expenses declined to Rs 12.04 crore from Rs 14.05 crore over the same sequential comparison.

Changes in inventories represented an expense of Rs 5.22 crore in the September quarter, compared with a reduction of Rs 28.24 crore in the June quarter. Depreciation and amortisation were unchanged at Rs 46 lakh in both quarters. While these cost movements affected the expense base, International Conveyors specifically attributed negative other income primarily to unrealised FVTPL fair-value losses.

How did International Conveyors' standalone and half-year results compare?

International Conveyors' standalone operation reported a loss after tax of Rs 11.20 crore in the September quarter, compared with the consolidated loss after tax of Rs 68 lakh. Standalone revenue from operations was Rs 76.78 crore, while standalone other income was negative Rs 20.86 crore and loss before tax was Rs 11.40 crore.

The standalone tax result comprised a current-tax charge of Rs 6.24 crore and a deferred-tax credit of Rs 6.44 crore. That produced a net tax credit of Rs 20 lakh. Consolidation reduced the reported loss relative to the standalone outcome, with consolidated revenue exceeding standalone revenue by Rs 5.64 crore in the September quarter.

For the half year ended September 30, 2026, International Conveyors reported consolidated profit after tax of Rs 119.13 crore, compared with Rs 34.71 crore for the half year ended September 30, 2025. Consolidated revenue from operations rose to Rs 117.74 crore from Rs 80.76 crore, while total income increased to Rs 244.01 crore from Rs 114.33 crore.

The half-year profit was largely shaped by the June-quarter profit after tax of Rs 119.82 crore, when other income was Rs 147.05 crore. Consolidated basic earnings per share were negative Rs 0.11 in the September quarter, compared with Rs 18.79 in June; the filing states that quarterly earnings per share are not annualised.

What did International Conveyors' board and auditors report?

International Conveyors' board approved the unaudited standalone and consolidated results on November 13, 2026, following review by the audit committee. The statutory auditors performed a limited review for the quarter and half year ended September 30, 2026, rather than a full audit, and their review conclusion did not identify a material misstatement.

The consolidated auditor's report said two subsidiaries' interim financial results had not been reviewed by their auditors. Those subsidiaries had combined assets of Rs 21 lakh at September 30, 2026, revenue of Rs 31 lakh for the quarter and Rs 1.43 crore for the half year, and losses after tax of Rs 32 lakh and Rs 39 lakh respectively.

Management told the auditors that the two unreviewed subsidiaries were not material to the consolidated business, and the audit conclusion was not modified on that matter. International Conveyors listed four subsidiaries: International Belting Limited, Conveyors Holdings Pte Limited, International Conveyors America Limited, INC, and International Conveyors Australia PTY LTD.

Conclusion

International Conveyors delivered higher September-quarter operating revenue of Rs 82.42 crore, led by Rs 69.66 crore of conveyor-belt segment revenue, but reported a Rs 68 lakh consolidated loss after a Rs 20.78 crore negative other-income result. The comparison with June, when profit after tax was Rs 119.82 crore, shows that FVTPL valuation movements rather than revenue alone determined the period's earnings outcome.

The key disclosed unresolved matter to watch is the next movement in unrealised MTM fair-value losses on FVTPL financial assets under Indian Accounting Standard 109. International Conveyors did not provide an earnings target, operational guidance, investment plan or scheduled resolution for those valuation movements in the September 2026 results.