Mac Charles standalone first-half profit reaches Rs 32.36 crore

Mac Charles (India) Limited reported standalone profit after tax of Rs 32.36 crore for the six months ended 30 September 2026, reversing a Rs 6.27 crore loss a year earlier. Revenue from operations rose to Rs 65.25 crore from Rs 45.55 crore, while finance costs fell to Rs 48.20 crore from Rs 63.29 crore.

How did Mac Charles return to first-half profit?

Mac Charles returned to profit as total income increased to Rs 101.63 crore in the six months ended 30 September 2026 while total expenses declined to Rs 69.28 crore. Profit before tax and profit after tax were both Rs 32.36 crore because the statement recorded no current or deferred tax expense, against a Rs 6.27 crore loss before and after tax in the corresponding 2025 period.

Revenue from operations increased by Rs 19.70 crore year on year to Rs 65.25 crore, while other income rose by Rs 3.30 crore to Rs 36.39 crore. Total income therefore increased by Rs 23.00 crore from Rs 78.63 crore in the six months ended 30 September 2025, exceeding the Rs 15.62 crore reduction in total expenses.

Mac Charles reported total comprehensive income of Rs 32.49 crore for the latest first half, compared with a Rs 6.30 crore comprehensive loss a year earlier. Basic and diluted earnings per share were Rs 24.70, against a loss per share of Rs 4.78, on paid-up equity share capital of Rs 13.10 crore.

What changed in Mac Charles’s September-quarter earnings?

Mac Charles remained profitable in the quarter ended 30 September 2026, reporting profit after tax of Rs 10.60 crore, versus a Rs 1.53 crore loss in the September 2025 quarter. The quarterly profit was below Rs 21.77 crore in the preceding June 2026 quarter, when the company recorded higher other income.

Revenue from operations was Rs 33.01 crore in the September 2026 quarter, up from Rs 23.75 crore a year earlier and slightly above Rs 32.23 crore in June 2026. Other income, however, declined to Rs 10.54 crore from Rs 25.84 crore quarter on quarter, taking total income down to Rs 43.56 crore from Rs 58.08 crore.

Total expenses declined to Rs 32.95 crore from Rs 38.31 crore in June 2026 and Rs 42.17 crore in September 2025. Finance costs were Rs 22.32 crore, compared with Rs 25.88 crore in June and Rs 31.87 crore a year earlier, while employee benefits expense increased to Rs 2.98 crore from Rs 2.46 crore in the June quarter.

How much did finance costs affect Mac Charles’s result?

Mac Charles reduced first-half finance costs by Rs 15.09 crore year on year to Rs 48.20 crore, making this the main expense reduction in the standalone statement. Employee benefits expense rose to Rs 5.43 crore from Rs 4.56 crore, and depreciation and amortisation increased to Rs 10.68 crore from Rs 9.95 crore, but total expenses still fell.

The cash-flow statement records Rs 34.34 crore of interest income and Rs 48.20 crore of interest expense for the six months ended 30 September 2026. It also identifies Rs 1.55 crore of profit on sale of mutual-fund investments and Rs 0.49 crore of corporate-guarantee income among the adjustments used to reconcile profit before tax to operating cash flow.

Mac Charles had disclosed a refinancing-related exceptional expense of Rs 60.72 crore in the year ended 31 March 2026. It prepaid term loans from ICICI Bank Limited and Hero Fincorp Limited after sanction and drawdown of a new State Bank of India term-loan facility; the exceptional expense comprised prepayment penalties, unamortised processing fees and unamortised notional guarantee costs.

What do Mac Charles’s balance sheet and cash flows show?

Mac Charles reported total standalone borrowings of Rs 1,068.45 crore at 30 September 2026, down from Rs 1,161.74 crore at 31 March 2026. Non-current borrowings changed marginally to Rs 1,056.72 crore from Rs 1,063.44 crore, while current borrowings fell to Rs 11.73 crore from Rs 98.30 crore.

Total assets stood at Rs 1,537.15 crore at 30 September 2026, compared with Rs 1,598.27 crore at 31 March 2026. Investment property was Rs 628.28 crore and non-current investments were Rs 619.10 crore, while total equity rose to Rs 393.39 crore from Rs 360.90 crore as other equity increased by Rs 32.49 crore.

Net cash from operating activities was Rs 62.07 crore in the six months ended 30 September 2026, compared with Rs 12.76 crore a year earlier. Net cash from investing activities was Rs 75.41 crore, while financing activities used Rs 139.84 crore, including Rs 85.84 crore of interest paid and Rs 53.89 crore of long-term borrowing repayments. Cash and cash equivalents consequently declined from Rs 3.20 crore at the start of the period to Rs 84 lakh.

What subsidiary funding and corporate actions remain relevant?

Mac Charles has an agreement to provide up to Rs 600 crore as interest-free inter-corporate deposits to wholly owned subsidiary Mac Charles Hub Projects Private Limited. The deposits are repayable five years from the agreement’s execution, and the company said that term was extended by another five years during the September 2026 quarter.

During the six months ended 30 September 2026, Mac Charles released Rs 8.14 crore and received Rs 90 crore back under that arrangement, leaving net funds released of Rs 339.17 crore at 30 September 2026. Separately, the board approved a scheme of arrangement on 13 September 2024 involving an undertaking transfer to wholly owned subsidiary Embassy Prism Ventures Limited, and the filing says Mac Charles has received a no-objection from BSE.

Mac Charles’s standalone unaudited results were reviewed by Walker Chandiok & Co LLP and approved by the board on 2 November 2026. The reviewer stated that nothing had come to its attention to indicate that the standalone statement had not disclosed the required information or contained a material misstatement.

Conclusion

Mac Charles’s first-half standalone turnaround combined a Rs 19.70 crore rise in operating revenue, a Rs 3.30 crore increase in other income and a Rs 15.09 crore reduction in finance costs. These movements converted a Rs 6.27 crore loss in the first half of 2025 into Rs 32.36 crore profit in the first half of 2026, despite higher employee and depreciation expenses.

The disclosed matters to watch are the extended inter-corporate-deposit arrangement with Mac Charles Hub Projects Private Limited, where net funding was Rs 339.17 crore, and the scheme involving Embassy Prism Ventures Limited that received a BSE no-objection. Future standalone results will also show the effect of the Rs 1,068.45 crore borrowings reported at 30 September 2026 on finance costs and repayments.