Madhavbaug half-year revenue rises 17%, group posts loss

Vaidya Sane Ayurved Laboratories Limited, which is listed as Madhavbaug, reported a consolidated loss of Rs 21.80 lakh for the half year ended September 30, 2026, against a Rs 4.84 crore profit a year earlier, as total expenses rose to Rs 60.79 crore despite revenue from operations increasing 17.5% to Rs 58.69 crore.

What did Madhavbaug report for the September 2026 half year?

Madhavbaug reported total income of Rs 60.61 crore for the half year ended September 30, 2026, compared with Rs 50.90 crore in the corresponding 2025 period. Revenue from operations rose from Rs 49.94 crore to Rs 58.69 crore, while other income increased from Rs 95.14 lakh to Rs 1.93 crore.

Total expenses increased to Rs 60.79 crore from Rs 44.43 crore a year earlier, leaving a pre-tax loss of Rs 18.28 lakh. In the half year ended September 30, 2025, Madhavbaug had reported a pre-tax profit of Rs 6.47 crore. After the reported tax items, minority interest and share of loss in an associate, the group recorded a Rs 21.80 lakh loss, compared with a Rs 4.84 crore profit.

Madhavbaug reported basic earnings per share of negative Rs 0.21 for the September 2026 half year, against Rs 4.56 a year earlier. Diluted earnings per share were negative Rs 0.19, compared with Rs 2.10 in the prior-year period. The figures show that the increase in income did not cover the rise in group costs.

Why did Madhavbaug move from profit to loss?

Madhavbaug moved to a loss because total expenses increased by Rs 16.36 crore year on year, exceeding the Rs 9.72 crore rise in total income. Other expenses were Rs 34.67 crore, up from Rs 23.44 crore, representing the largest absolute increase among the disclosed expense categories.

Employee benefits expense rose to Rs 12.69 crore from Rs 9.59 crore, and cost of materials consumed increased to Rs 9.98 crore from Rs 8.29 crore. Depreciation and amortisation increased to Rs 3.14 crore from Rs 3.00 crore, while finance costs rose to Rs 31.37 lakh from Rs 10.46 lakh. These movements took the group from a pre-tax profit to a pre-tax loss.

The September 2026 performance also changed from the immediately preceding half year ended March 31, 2026, when Madhavbaug reported total income of Rs 58.38 crore and profit after tax of Rs 3.25 crore. Other expenses increased from Rs 30.95 crore in that preceding half year to Rs 34.67 crore, while employee benefits expense rose from Rs 8.58 crore to Rs 12.69 crore.

How did Madhavbaug’s hospital and product activities perform?

Madhavbaug’s hospital activity reported revenue of Rs 12.77 crore for the half year ended September 30, 2026, down from Rs 12.90 crore a year earlier. Its reported operating profit was Rs 4.79 crore, compared with Rs 6.48 crore in the corresponding prior-year half year, and segment assets stood at Rs 25.83 crore.

Sale-of-product activity generated Rs 43.21 crore of revenue, up from Rs 33.93 crore in the September 2025 half year. The segment report recorded operating profit of Rs 20.55 crore for this activity, compared with Rs 19.12 crore a year earlier. The report also showed Rs 26.62 crore of common or unallocable corporate expenses, up from Rs 23.15 crore.

Madhavbaug reported Rs 2.71 crore of common or unallocable revenue and Rs 1.93 crore of other segment revenue for the September 2026 half year. The segment disclosure separates hospital and product activity from corporate items, but does not give a further management explanation for the increase in corporate expenses.

What changed in Madhavbaug’s cash flow and balance sheet?

Madhavbaug generated net cash from operating activities of Rs 7.04 crore during the September 2026 half year, compared with Rs 5.60 crore in the corresponding 2025 period. The cash flow statement recorded a Rs 6.50 crore increase in trade receivables and a Rs 1.69 crore increase in inventories, partly offset by a Rs 6.95 crore increase in trade payables and a Rs 4.75 crore increase in other liabilities.

Investing activities used Rs 15.89 crore of cash, compared with Rs 1.98 crore a year earlier. The reported outflows included Rs 14.24 crore for property, plant, equipment and intangible assets, Rs 12.98 crore for non-current investments and Rs 9.56 crore for current investments. Long-term loans realised added Rs 2.79 crore, while short-term loans given used Rs 8.63 crore.

Financing activities generated Rs 10.44 crore, including Rs 11.82 crore of proceeds from short-term borrowings and Rs 1.38 crore of repayments of long-term borrowings. Cash and bank balances were Rs 2.03 crore at September 30, 2026, versus Rs 43.72 lakh at March 31, 2026. Total assets rose to Rs 127.96 crore from Rs 104.37 crore, while current liabilities rose to Rs 37.27 crore from Rs 11.88 crore.

What did the auditor say about Madhavbaug’s consolidated results?

Madhavbaug’s auditor said nothing had come to its attention that caused it to believe the consolidated statement lacked required disclosures or contained a material misstatement. The limited review covered the six months ended September 30, 2026 and was conducted under Standard on Review Engagements 2410.

The auditor said it did not itself review the interim results of five subsidiaries included in the consolidated results. Those subsidiaries had total assets of Rs 47.71 crore at September 30, 2026, revenue of Rs 60.61 crore, a combined net loss after tax of Rs 21.97 lakh and net cash inflow of Rs 1.59 crore for the six-month period, according to the review report.

The auditor also said vendor classification as micro, small and medium enterprises was based on management information and declarations from vendors and could not be independently verified. It noted that no provision had been made for interest, if applicable, on delayed supplier payments under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006. Its conclusion was not modified in respect of that matter.

Conclusion

Madhavbaug’s September 2026 consolidated half-year results show that revenue growth was accompanied by a reversal from profit to loss. Revenue from operations increased to Rs 58.69 crore, but total expenses reached Rs 60.79 crore as other expenses, employee benefits expense and material costs increased. Operating cash flow remained positive at Rs 7.04 crore, while investing activities used Rs 15.89 crore.

The next reported results will show whether the increase in other expenses to Rs 34.67 crore and employee benefits expense to Rs 12.69 crore moderates. The unresolved matters disclosed by the auditor include independent verification of vendor MSME classifications and any applicable delayed-payment interest provision, while the balance sheet also showed current liabilities of Rs 37.27 crore at September 30, 2026.