Madala Holdings reports Rs 6.2725 crore loss on depreciation

Madala Holdings Limited reported a standalone net loss of Rs 6.2725 crore for the quarter ended September 30, 2026, after depreciation and amortisation rose to Rs 3.735 crore. The company said it had prospectively revised the remaining useful lives of buildings proposed for demolition under its redevelopment plan.

What caused Madala Holdings' September-quarter loss?

Madala Holdings' September-quarter loss resulted from higher depreciation, a negative other-income line and higher expenses, while revenue from operations remained close to the June 2026 level. The company reported a pre-tax loss of Rs 6.9983 crore for the quarter ended September 30, 2026, compared with a pre-tax profit of Rs 2.5353 crore in the quarter ended September 30, 2025.

The company said it revised the estimated remaining useful lives of certain buildings during the year because they are proposed to be demolished as part of its redevelopment plan. It provided depreciation prospectively on the carrying value of these buildings over their revised remaining useful lives, resulting in a higher charge for the September 2026 quarter. The filing does not quantify the portion of the Rs 3.735 crore depreciation charge caused by this accounting revision.

Tax accounting reduced the post-tax loss relative to the pre-tax loss in the September quarter. Madala Holdings recorded current tax expense of Rs 0.2142 crore and deferred tax income of Rs 0.94 crore, resulting in the Rs 6.2725 crore loss for the period. Basic earnings per share were negative Rs 4.25, compared with Rs 2.32 in the June 2026 quarter and Rs 1.26 a year earlier.

How did Madala Holdings' revenue and expenses change?

Madala Holdings' revenue from operations was broadly stable sequentially at Rs 3.8385 crore in the September 2026 quarter, versus Rs 3.8603 crore in the June 2026 quarter, and was above Rs 3.389 crore a year earlier. The company reports one business segment, INFRA Business, under Indian Accounting Standard 108, which covers operating-segment reporting.

Total income turned negative Rs 0.4695 crore in the September 2026 quarter from positive Rs 8.8801 crore in the June 2026 quarter because other income/(loss) moved to negative Rs 4.308 crore from positive Rs 5.0198 crore. The filing gives no break-up of the factors behind that quarterly movement in other income/(loss).

Total expenses rose to Rs 6.5288 crore in September 2026 from Rs 5.3553 crore in June 2026 and Rs 1.715 crore in September 2025. Depreciation was almost unchanged from Rs 3.7333 crore in June but was Rs 3.3177 crore higher than the prior-year quarter. Other expenses increased to Rs 2.4239 crore from Rs 1.2742 crore sequentially.

Employee-benefit expense rose to Rs 0.2873 crore in the September quarter from Rs 0.2653 crore in June and Rs 0.2002 crore a year earlier. Finance costs were largely unchanged at Rs 0.0826 crore, compared with Rs 0.0825 crore in June 2026 and Rs 0.0821 crore in September 2025. The reported profit movement therefore coincided mainly with other income/(loss), depreciation and other expenses.

What do Madala Holdings' half-year results show?

Madala Holdings recorded a Rs 2.8412 crore loss for the half year ended September 30, 2026, compared with a profit of Rs 6.301 crore in the corresponding half year of 2025. Revenue from operations rose to Rs 7.6988 crore from Rs 6.7773 crore, but depreciation and amortisation increased to Rs 7.4683 crore from Rs 0.8371 crore.

Other income/(loss) for the six months was Rs 0.7118 crore, down from Rs 3.6793 crore in the previous corresponding period. Total expenses increased to Rs 11.8841 crore from Rs 3.0646 crore, moving the company from a pre-tax profit of Rs 7.392 crore in the 2025 half year to a pre-tax loss of Rs 3.4735 crore in the 2026 half year.

Operating cash flow remained positive despite the accounting loss. Net cash generated from operating activities was Rs 3.72 crore for the six months ended September 2026, compared with Rs 19.3481 crore for the six months ended September 2025. Under the indirect cash-flow method, the company added back the Rs 7.4683 crore depreciation and amortisation charge to its half-year pre-tax loss.

Investing activities used Rs 1.4162 crore in the 2026 half year, compared with Rs 19.1619 crore in the prior-year period. Madala Holdings reported net investment of Rs 28 crore in mutual funds and venture capital funds, partly offset by Rs 26.0893 crore of loans received back. Cash and cash equivalents increased by Rs 2.308 crore to Rs 3.4519 crore at September 30, 2026.

How did Madala Holdings' balance sheet change?

Madala Holdings' total assets were Rs 120.5336 crore at September 30, 2026, down from Rs 123.5768 crore at March 31, 2026. Non-current assets declined to Rs 29.4302 crore from Rs 62.9665 crore, while current assets increased to Rs 91.1034 crore from Rs 60.6103 crore over the same six-month period.

Property, plant and equipment decreased to Rs 6.411 crore at September 30 from Rs 8.9644 crore at March 31, while investment property decreased to Rs 13.6865 crore from Rs 18.5801 crore. Those changes occurred in the same half year in which depreciation and amortisation totalled Rs 7.4683 crore, although the filing does not allocate the charge between the two asset categories.

Current investments rose to Rs 84.3112 crore at September 30 from Rs 56.2935 crore at March 31. Other non-current financial assets fell to Rs 9.3327 crore from Rs 35.422 crore, while trade receivables decreased to Rs 1.5528 crore from Rs 1.832 crore. Cash and cash equivalents rose from Rs 1.1439 crore to Rs 3.4519 crore.

Total equity declined to Rs 110.4733 crore at September 30, 2026, from Rs 113.3146 crore at March 31, 2026. Other equity fell to Rs 95.2956 crore from Rs 98.1369 crore, alongside the Rs 2.8412 crore half-year loss, while paid-up equity share capital stayed at Rs 15.1777 crore. Total liabilities were Rs 10.06 crore, compared with Rs 10.2622 crore at March 31.

Conclusion

Madala Holdings' September-quarter result combined stable operating revenue of Rs 3.8385 crore with a Rs 3.735 crore depreciation charge, negative other income/(loss) of Rs 4.308 crore and total expenses of Rs 6.5288 crore. The half-year comparison shows revenue rose by Rs 0.9215 crore, but depreciation increased by Rs 6.6312 crore and the company moved to a Rs 2.8412 crore loss.

The next results will show whether the prospective revision in useful lives continues to affect depreciation as Madala Holdings progresses its redevelopment plan. The filing identifies buildings proposed for demolition but discloses neither a redevelopment timetable nor the future depreciation charge, leaving those matters unresolved after September 30, 2026.