International Conveyors Q2 loss as MTM losses cut income

International Conveyors Limited posted a standalone loss after tax of Rs 11.20 crore for the quarter ended September 30, 2026, as unrealised mark-to-market losses made other income negative Rs 20.86 crore despite Rs 76.78 crore of revenue from operations. The company said the valuation losses arose on financial assets measured through profit or loss.

Why did International Conveyors report a Q2 loss?

International Conveyors reported a Q2 loss because negative other income reduced total income below expenses. Revenue from operations reached Rs 76.78 crore in the September 2026 quarter, but other income was negative Rs 20.86 crore, leaving total income at Rs 55.92 crore against total expenses of Rs 67.32 crore. This produced a loss before tax of Rs 11.40 crore.

The company said negative other income arose primarily from unrealised mark-to-market, or MTM, fair-value losses on financial assets classified as Fair Value Through Profit or Loss, or FVTPL, under Indian Accounting Standard 109. A net tax credit reduced the loss after tax to Rs 11.20 crore. Basic earnings per share were negative Rs 0.19 for the quarter ended September 30, 2026.

How did International Conveyors' operating revenue change in Q2?

International Conveyors increased standalone revenue from operations to Rs 76.78 crore in Q2 from Rs 37.80 crore in the June 2026 quarter and Rs 39.68 crore in the September 2025 quarter. The Rs 38.98 crore sequential rise in revenue did not determine the reported result because the FVTPL valuation movement was recorded through profit or loss.

Conveyor belts were the largest standalone revenue segment, generating Rs 64.02 crore in Q2 compared with Rs 35.49 crore in Q1. Trading goods contributed Rs 12.01 crore, wind energy contributed Rs 0.69 crore and unallocated revenue was Rs 0.11 crore. Inter-segment revenue of Rs 0.05 crore was eliminated to arrive at reported revenue from operations of Rs 76.78 crore.

The year-on-year comparison also shows the role of other income. In the quarter ended September 30, 2025, revenue from operations was Rs 39.68 crore but negative other income of Rs 32.66 crore left total income at Rs 7.02 crore. In the latest Q2, higher operating revenue lifted total income to Rs 55.92 crore, although it remained below Rs 67.32 crore of expenses.

What do International Conveyors' half-year results show?

International Conveyors recorded standalone profit after tax of Rs 119.02 crore for the half year ended September 30, 2026, compared with Rs 33.45 crore for the half year ended September 30, 2025. The six-month outcome was driven substantially by the June 2026 quarter, when other income was Rs 146.97 crore and profit before tax was Rs 152.22 crore.

For the half year, revenue from operations rose to Rs 114.58 crore from Rs 73.21 crore a year earlier, while other income increased to Rs 126.11 crore from Rs 33.41 crore. Total income therefore rose to Rs 240.69 crore from Rs 106.62 crore, while expenses increased to Rs 89.87 crore from Rs 63.45 crore. Profit before tax was Rs 150.82 crore, compared with Rs 43.17 crore in the earlier half year.

The quarterly progression was uneven: International Conveyors moved from a Rs 152.22 crore profit before tax in the June 2026 quarter to an Rs 11.40 crore loss before tax in the September 2026 quarter. The filing does not provide an earnings forecast or target, but it identifies fair-value movements on FVTPL financial assets as the reason other income turned negative in Q2.

How did International Conveyors' consolidated Q2 result compare?

International Conveyors reported a consolidated loss after tax of Rs 0.68 crore for Q2, smaller than the standalone loss after tax of Rs 11.20 crore. Consolidated revenue from operations was Rs 82.42 crore, Rs 5.64 crore above standalone revenue, while consolidated other income was negative Rs 20.81 crore and total expenses were Rs 62.50 crore.

The group recorded a consolidated loss before tax of Rs 0.86 crore for the quarter ended September 30, 2026. Its four subsidiaries were International Belting Limited in India, International Conveyors America Limited, INC in the United States, Conveyor Holdings Pte Limited in Singapore, and International Conveyors Australia Pty Limited in Australia. The filing states that International Conveyors has no associate or joint venture.

The auditors' consolidated review noted that two subsidiaries had unreviewed interim results supplied by management. Those entities had combined assets of Rs 21 lakh at September 30, 2026, Q2 revenue of Rs 31 lakh and a Q2 loss after tax of Rs 32 lakh. Management represented that these subsidiaries were not material to the group, and the auditors did not modify their conclusion on that matter.

What does the MTM disclosure mean for International Conveyors' results?

International Conveyors' MTM disclosure means that changes in the fair value of specified financial assets can affect reported profit or loss before the assets are sold. In Q2, the company linked negative other income of Rs 20.86 crore primarily to unrealised fair-value losses, even as operating revenue rose to Rs 76.78 crore.

The segment statement separates the operational and investment effects. Conveyor belts reported segment profit before tax and interest of Rs 24.07 crore in Q2, while the investment segment recorded a loss of Rs 22.67 crore. The company notes that segment results include interest income and other income belonging to each segment, and that the investment segment also includes related finance cost.

Standalone current investments stood at Rs 421.68 crore on September 30, 2026, up from Rs 276.59 crore on March 31, 2026. Standalone total assets increased to Rs 771.30 crore from Rs 566.09 crore over the same period. These balance-sheet figures provide context for why fair-value changes in financial assets can materially affect quarterly other income.

Conclusion

International Conveyors' September-quarter standalone loss occurred despite a sharp rise in operating revenue because unrealised FVTPL valuation losses pushed other income to negative Rs 20.86 crore. Conveyor belts generated Rs 64.02 crore of segment revenue and Rs 24.07 crore of segment profit before tax and interest, but the Rs 22.67 crore investment-segment loss weighed on the overall result.

The unresolved issue disclosed in the filing is the scale and direction of future fair-value movements on financial assets, after standalone current investments rose to Rs 421.68 crore at September 30, 2026. The next reported results will indicate whether valuation changes again outweigh operating gains, and whether revenue momentum in conveyor belts continues after its increase from Rs 35.49 crore in Q1 to Rs 64.02 crore in Q2.