Justo Realfintech Limited H1 profit falls 72% as revenue slips

Justo Realfintech reported consolidated profit after tax of Rs 1.69 crore for the half year ended September 30, 2026, down 72% from Rs 5.99 crore a year earlier. Revenue from operations declined to Rs 33.57 crore and operating activities used Rs 13.82 crore in cash during the six-month period.

Why did Justo Realfintech’s H1 profit fall?

Justo Realfintech’s H1 profit fell because total expenses increased while operating revenue declined. Revenue from operations decreased 8% to Rs 33.57 crore in the half year ended September 30, 2026, from Rs 36.63 crore in the corresponding 2025 half. Other income rose to Rs 25.85 lakh from Rs 4.56 lakh, but it did not offset the reduction in operating revenue.

Total expenses rose 10% to Rs 31.61 crore from Rs 28.65 crore. Operational and other expenses increased by Rs 3.57 crore to Rs 12.44 crore, while employee benefit expenses decreased by Rs 39.62 lakh to Rs 17.91 crore. Finance costs fell by Rs 40 lakh to Rs 90.77 lakh, whereas depreciation and amortisation increased by Rs 18.50 lakh to Rs 34.88 lakh.

Profit before tax declined 72% to Rs 2.25 crore from Rs 8.03 crore. Current tax expense declined to Rs 1.07 crore from Rs 2.04 crore, while deferred tax was a credit of Rs 53.63 lakh, compared with a credit of Rs 32,000 a year earlier. These items resulted in reported profit after tax of Rs 1.69 crore for the September 2026 half.

How did the September 2026 half compare with the preceding half?

Justo Realfintech reported lower revenue and profit in the September 2026 half than in the half year ended March 31, 2026. Revenue from operations was Rs 33.57 crore, compared with Rs 55.15 crore in the preceding six months, while total revenue was Rs 33.83 crore against Rs 56.15 crore. The filing presents both as reported half-year periods and does not annualise them.

Profit after tax fell to Rs 1.69 crore from Rs 13.22 crore in the preceding half, and profit before tax fell to Rs 2.25 crore from Rs 18.06 crore. Operational and other expenses declined to Rs 12.44 crore from Rs 17.35 crore between the two halves, but this reduction was smaller than the Rs 21.58 crore decrease in revenue from operations.

For the full year ended March 31, 2026, Justo Realfintech reported revenue from operations of Rs 91.78 crore, total expenses of Rs 66.74 crore and profit after tax of Rs 19.21 crore. The September 2026 half produced Rs 33.57 crore of operating revenue and Rs 1.69 crore of profit after tax, with the filing providing no forecast for the remaining half of the financial year.

What caused Justo Realfintech’s operating cash outflow?

Justo Realfintech used Rs 13.82 crore in operating activities in the half year ended September 30, 2026, primarily because working-capital movements absorbed cash. The consolidated cash-flow statement records cash used in operations of Rs 12.18 crore and net income tax paid of Rs 1.64 crore. This cash result differed from the Rs 1.69 crore profit after tax because operating cash was affected by balance-sheet movements.

The aggregate working-capital change was an outflow of Rs 15.41 crore. The largest disclosed item was a Rs 10.91 crore increase in trade receivables, followed by a Rs 1.67 crore decrease in trade payables and a Rs 36.51 lakh decrease in provisions. The filing does not provide a September 2025 consolidated cash-flow statement, so it does not permit a direct year-on-year comparison of the operating cash figure.

Cash and cash equivalents increased to Rs 26.26 crore at September 30, 2026 from Rs 23.19 crore at March 31, 2026. The cash-flow statement reported Rs 7.50 crore of net cash from financing activities, including Rs 5.35 crore of proceeds from short-term borrowings and Rs 3.09 crore of proceeds from long-term borrowings. The reported net increase in cash and cash equivalents was Rs 3.07 crore.

How did Justo Realfintech’s receivables and borrowings change?

Justo Realfintech’s trade receivables rose by Rs 11.11 crore to Rs 97.47 crore at September 30, 2026, from Rs 86.36 crore at March 31, 2026. The balance-sheet movement occurred alongside the Rs 10.91 crore receivables-related outflow recorded in the consolidated cash-flow statement. Current assets increased to Rs 142.36 crore from Rs 139.29 crore over the same period.

Short-term borrowings increased by Rs 5.36 crore to Rs 20.31 crore, while long-term borrowings rose to Rs 3.32 crore from Rs 27.29 lakh. Total current liabilities were Rs 34.29 crore at September 30, 2026, compared with Rs 34.34 crore at March 31, 2026. Other current liabilities fell to Rs 9.64 crore from Rs 12.94 crore, and trade payables due to others declined to Rs 1.21 crore from Rs 2.51 crore.

Total assets increased to Rs 166.54 crore from Rs 161.98 crore. Intangible assets under development rose to Rs 9.19 crore from Rs 8.16 crore, while property, plant and equipment declined to Rs 2.68 crore from Rs 2.94 crore. The filing identifies real estate mandate business as Justo Realfintech’s main activity and states that it has no other reportable business segment.

What did the auditor’s review report say about the results?

Justo Realfintech received an unmodified review conclusion from S M M P & Company on its consolidated unaudited results for the half year ended September 30, 2026. The auditor said nothing had come to its attention that caused it to believe the statement did not disclose required information or contained a material misstatement. The review was conducted under Standard on Review Engagements 2410.

The auditor noted that the interim information for three subsidiaries had not been reviewed by their auditors and was certified by management. Before consolidation adjustments, those subsidiaries had combined assets of Rs 12.32 crore, revenue of Rs 1.04 crore and a net loss after tax of Rs 1.66 crore for April 1, 2026 to September 30, 2026. The auditor said management represented that these entities were not material to the group and did not modify its conclusion.

The entities listed were Justo Infotech Labs Private Limited, Chestertons India Private Limited and Chestertons Development Private Limited. The first two were identified as wholly owned subsidiaries, while Chestertons Development Private Limited was identified as a step-down subsidiary. The board approved the consolidated results on November 13, 2026.

Conclusion

Justo Realfintech’s September 2026 half-year results show that the earnings decline was larger than the 8% reduction in operating revenue. Profit after tax fell 72% to Rs 1.69 crore as total expenses increased 10%, and the Rs 13.82 crore operating cash outflow was driven by a Rs 15.41 crore working-capital use.

The next disclosure should show whether the Rs 97.47 crore receivables balance converts into operating cash and how financing changes after short-term borrowings increased to Rs 20.31 crore. The filing does not disclose an earnings target or operating forecast, leaving receivables collection and cash generation as unresolved matters for subsequent results.