Madhusudan Masala revenue doubles as cash outflow widens

Madhusudan Masala Limited reported consolidated revenue from operations of Rs 97.665 crore for the quarter ended September 30, 2026, from Rs 45.1275 crore a year earlier, and net profit of Rs 6.4187 crore from Rs 3.491 crore. Madhusudan Masala’s half-year operating cash outflow was Rs 19.4592 crore as inventories and other loans and advances used cash.

How did Madhusudan Masala perform in the September 2026 quarter?

Madhusudan Masala’s consolidated revenue from operations more than doubled year on year to Rs 97.665 crore in the quarter ended September 30, 2026, compared with Rs 45.1275 crore in the quarter ended September 30, 2025. Other income declined to Rs 19.23 lakh from Rs 51.65 lakh, resulting in total income of Rs 97.8578 crore, against Rs 45.644 crore a year earlier.

Net profit rose to Rs 6.4187 crore from Rs 3.491 crore, while profit before tax increased to Rs 8.5481 crore from Rs 4.6981 crore. Current tax expense was Rs 2.1685 crore, compared with Rs 1.1762 crore in the prior-year quarter, and deferred tax was a credit of Rs 3.90 lakh. The results recorded no exceptional or extraordinary items in either quarter.

The September-quarter revenue was marginally below Rs 98.2845 crore in the quarter ended June 30, 2026, while net profit was also below Rs 6.5029 crore in that preceding quarter. Basic earnings per share were Rs 2.02 in the September quarter, compared with Rs 2.41 a year earlier and Rs 4.22 in the June quarter. Madhusudan Masala said quarterly earnings per share are not annualised.

What costs changed as Madhusudan Masala’s revenue rose?

Madhusudan Masala reported materials consumed of Rs 51.5392 crore in the September 2026 quarter, compared with Rs 47.9221 crore a year earlier, while purchases of stock-in-trade increased to Rs 23.3437 crore from Rs 2.9016 crore. The change in inventories was an expense of Rs 7.7413 crore, against a negative Rs 15.7857 crore in the September 2025 quarter.

Employee-benefit expense increased to Rs 2.3554 crore from Rs 1.1558 crore and finance costs rose to Rs 1.8169 crore from Rs 1.7419 crore. Depreciation and amortisation were Rs 64.26 lakh, compared with Rs 62 lakh, while other expenses fell to Rs 1.8706 crore from Rs 2.3901 crore. Total expenses therefore increased to Rs 89.3097 crore from Rs 40.9459 crore.

For the half year ended September 30, 2026, revenue from operations was Rs 195.95 crore, compared with Rs 118.2176 crore in the half year ended September 30, 2025. Half-year profit before tax rose to Rs 17.2772 crore from Rs 10.2502 crore, and net profit increased to Rs 12.9215 crore from Rs 7.6577 crore. The filing says Madhusudan Masala has no separate reportable business or geographical segment and conducts all operations in India.

Why was Madhusudan Masala’s operating cash flow negative?

Madhusudan Masala recorded net cash used in operating activities of Rs 19.4592 crore for the half year ended September 30, 2026, after operating profit before working-capital changes of Rs 22.3326 crore. Working-capital movements led to net cash used in operations of Rs 38.6682 crore before direct taxes paid, despite the reported half-year profit before tax of Rs 17.2772 crore.

The largest uses were a Rs 25.7905 crore increase in inventories and a Rs 22.1218 crore increase in other loans and advances receivable. A Rs 10.0668 crore decrease in trade receivables supplied cash, but did not offset those two movements. Direct taxes paid totalled Rs 3.1236 crore, bringing the operating cash outflow to Rs 19.4592 crore.

Investing activities generated Rs 1.1531 crore during the half year, after capital expenditure on fixed assets and capital advances of Rs 5.7734 crore and a Rs 6.8403 crore movement in long-term loans and advances. Financing activities provided Rs 18.0252 crore, including Rs 12.1495 crore from net increase in share capital and Rs 7.5265 crore from increased short-term borrowings. Cash and cash equivalents fell to Rs 49.02 lakh on September 30 from Rs 77.11 lakh on March 31.

What does Madhusudan Masala’s balance sheet show?

Madhusudan Masala’s inventories stood at Rs 140.257 crore on September 30, 2026, compared with Rs 114.4665 crore on March 31, 2026. Short-term loans and advances increased to Rs 36.3466 crore from Rs 11.1011 crore, while trade receivables declined to Rs 50.1748 crore from Rs 60.2416 crore. These changes correspond with the inventory and advances movements in the half-year cash-flow statement.

Current assets rose to Rs 227.2686 crore from Rs 186.765 crore, while current liabilities increased to Rs 96.45 crore from Rs 85.5498 crore. Short-term borrowings were Rs 78.9829 crore, up from Rs 71.4564 crore, and long-term borrowings were Rs 13.7001 crore, against Rs 11.501 crore. Shareholders’ funds increased to Rs 147.7306 crore from Rs 122.6594 crore.

Capital work in progress increased to Rs 7.7226 crore from Rs 2.033 crore, while property, plant and equipment declined to Rs 14.3745 crore from Rs 15.5822 crore. The interest-service coverage ratio was 6.06 in the September 2026 quarter, compared with 4.05 in the year-earlier quarter. The consolidated results include wholly owned subsidiary Vitagreen Products Private Limited, acquired on July 26, 2024.

What did Madhusudan Masala decide after the results?

Madhusudan Masala’s board approved the unaudited standalone and consolidated financial results on October 30, 2026, following audit committee review. Sarvesh Gohil & Associates issued a limited-review report on the consolidated results and said nothing had come to its attention to indicate that required disclosures were not made or that the statement contained a material misstatement.

The board also approved a proposed migration from the NSE Emerge platform to the main boards of the National Stock Exchange of India Limited and BSE Limited. The proposal requires approval from members, the two exchanges and other authorities. Madhusudan Masala also approved a postal-ballot notice and calendar of events, appointed National Securities Depository Limited as remote e-voting agency, and named SCS and Co LLP as scrutiniser for the e-voting process.

Conclusion

Madhusudan Masala’s September-quarter results combined year-on-year increases in revenue, profit before tax and net profit with a modest sequential decline from the June 2026 quarter. For the half year, revenue reached Rs 195.95 crore and net profit reached Rs 12.9215 crore, but operating cash flow was negative because inventory and other loans and advances absorbed Rs 47.9123 crore combined.

The next disclosed event is the postal-ballot process for the proposed move from NSE Emerge to the main boards of NSE and BSE, which remains subject to shareholder, exchange and other approvals. Subsequent results will also show whether inventories of Rs 140.257 crore and short-term loans and advances of Rs 36.3466 crore continue to absorb operating cash.