Mamata Machinery revenue falls 23%, posts Rs 1.0539 crore loss

Mamata Machinery Limited reported a consolidated loss of Rs 1.0539 crore for the quarter ended September 30, 2026, reversing a Rs 4.5303 crore profit a year earlier, after revenue from operations fell 23% year-on-year to Rs 41.0456 crore from Rs 53.3708 crore. The quarterly pre-tax result changed to a Rs 1.3745 crore loss from a Rs 6.3286 crore profit.

Why did Mamata Machinery post a quarterly loss?

Mamata Machinery posted a quarterly loss because total income of Rs 42.0700 crore was below total expenses of Rs 43.4445 crore in the quarter ended September 30, 2026. In the year-earlier quarter, total income was Rs 54.1691 crore and expenses were Rs 47.8405 crore, producing a Rs 6.3286 crore pre-tax profit.

Revenue declined by Rs 12.3252 crore year-on-year, whereas expenses declined by Rs 4.3960 crore. Raw-material and component consumption fell to Rs 25.0067 crore from Rs 25.9308 crore, but employee-benefit expense increased to Rs 11.7991 crore from Rs 11.5216 crore, finance costs rose to Rs 35.68 lakh from Rs 22.99 lakh, and depreciation and amortisation increased to Rs 1.1930 crore from Rs 1.0151 crore.

Mamata Machinery recorded a Rs 32.06 lakh tax credit in the September 2026 quarter, comprising a Rs 52.46 lakh deferred-tax credit partly offset by Rs 20.40 lakh of current tax. The credit reduced the post-tax loss from the Rs 1.3745 crore pre-tax loss to Rs 1.0539 crore, while basic and diluted earnings per share were both negative Rs 0.43, against positive Rs 1.84 a year earlier.

How did Mamata Machinery perform in the first half?

Mamata Machinery reported a consolidated loss of Rs 4.5196 crore for the half year ended September 30, 2026, compared with a Rs 7.1765 crore profit in the corresponding 2025 period. Revenue from operations declined to Rs 77.3215 crore from Rs 92.0344 crore, while total income fell to Rs 80.1209 crore from Rs 94.3278 crore.

The first-half pre-tax result changed to a Rs 5.5829 crore loss from a Rs 9.9826 crore profit because total expenses increased to Rs 85.7038 crore from Rs 84.3452 crore despite lower revenue. Employee-benefit expense rose to Rs 23.4342 crore from Rs 21.9993 crore, other expenses increased to Rs 28.4552 crore from Rs 24.1909 crore, and depreciation and amortisation rose to Rs 2.2654 crore from Rs 1.8327 crore.

Changes in inventories of finished goods and work in progress reduced first-half expenses by Rs 11.5340 crore, compared with a Rs 16.2030 crore reduction in the prior-year period. That benefit was Rs 4.6690 crore lower year-on-year, alongside the decline in revenue and increases in several operating-cost categories.

Mamata Machinery’s September quarter improved sequentially from the June 2026 quarter but remained loss-making. Revenue increased to Rs 41.0456 crore from Rs 36.2759 crore, while the net loss narrowed to Rs 1.0539 crore from Rs 3.4657 crore and the pre-tax loss narrowed to Rs 1.3745 crore from Rs 4.2085 crore.

What changed in Mamata Machinery’s balance sheet?

Mamata Machinery’s inventories increased to Rs 92.4782 crore at September 30, 2026 from Rs 73.1143 crore at March 31, 2026. Trade receivables fell to Rs 18.9973 crore from Rs 40.5124 crore, while cash and cash equivalents rose to Rs 26.3456 crore from Rs 12.1966 crore.

Bank balances other than cash equivalents increased to Rs 28.5000 crore from Rs 11.0000 crore, while other current financial assets declined to Rs 7.0530 crore from Rs 45.4806 crore. Other current assets rose to Rs 25.7166 crore from Rs 15.4051 crore during the same six-month period in which Mamata Machinery reported a Rs 4.5196 crore net loss.

Mamata Machinery’s non-current borrowings declined to Rs 6.2165 crore from Rs 6.7749 crore, while current borrowings increased to Rs 1.2143 crore from Rs 1.1652 crore. Non-current lease liabilities were Rs 2.5173 crore at September 30, 2026, versus no reported balance at March 31, 2026, and current lease liabilities rose to Rs 64.60 lakh from Rs 39.30 lakh.

Equity share capital was unchanged at Rs 24.6078 crore, while other equity declined to Rs 154.5594 crore from Rs 160.4622 crore. Trade payables due to micro and small enterprises increased to Rs 25.7187 crore from Rs 7.4362 crore, whereas payables to other creditors declined to Rs 15.3576 crore from Rs 18.1730 crore.

What does Mamata Machinery’s cash flow show?

Mamata Machinery generated Rs 6.6913 crore of net cash from operating activities in the half year ended September 30, 2026, despite a Rs 5.1125 crore operating loss before working-capital changes. A Rs 21.3154 crore decline in trade receivables and a Rs 15.4671 crore increase in trade payables supported cash generation.

Inventories absorbed Rs 19.3640 crore of operating cash, changes in current assets absorbed Rs 5.4630 crore, and income taxes paid were Rs 4.8485 crore. The reported positive operating cash flow therefore reflected the disclosed working-capital movements as well as operating performance.

Investing activities generated Rs 10.1427 crore, including a Rs 8.0457 crore decrease in bank deposits and Rs 2.2353 crore of interest received. Purchases of property, plant and equipment were Rs 27.59 lakh, while proceeds from their disposal were Rs 12.48 lakh.

Financing activities used Rs 2.8206 crore, including Rs 1.2304 crore of dividend payments, Rs 65.39 lakh of rent paid, Rs 50.93 lakh of long-term borrowing repayments and Rs 42.70 lakh of interest paid. Cash and cash equivalents rose by Rs 14.0134 crore before a Rs 13.56 lakh foreign-exchange translation gain, closing at Rs 26.3456 crore.

What are Mamata Machinery’s flood and subsidiary disclosures?

Mamata Machinery reported one operating segment, machineries, and its consolidated results include wholly owned subsidiary Mamata Enterprises, Inc. The subsidiary reported Rs 14.3741 crore of revenue and a Rs 77.53 lakh loss for the quarter ended September 30, 2026, with total assets of Rs 41.3201 crore at that date.

For the half year ended September 30, 2026, Mamata Enterprises reported revenue of Rs 23.1212 crore, a loss of Rs 2.9521 crore and a net cash outflow of Rs 3.1874 crore. Its interim financial information was reviewed by another auditor, and the consolidated auditor based its conclusion on that auditor’s report and its own procedures.

Mamata Machinery disclosed that heavy rainfall caused flooding at its production facilities and temporarily suspended operations before the September 30, 2026 reporting date. Management said it is technically assessing affected assets, their damage and estimated losses, while the final financial impact and insurance-claim amount cannot yet be determined with reasonable certainty.

The consolidated auditors issued an unmodified limited-review conclusion for the September 2026 quarter and half year, while drawing attention to the flood disclosure. A limited review provides less assurance than an audit, and the auditor did not modify its conclusion in relation to the flood matter.

Conclusion

Mamata Machinery’s first-half loss reflected lower revenue, a smaller inventory-related expense benefit and higher expenses in categories including employee benefits and other expenses. The balance sheet showed higher inventories, lower receivables and increased cash, while operating cash flow was positive because of working-capital movements despite the pre-tax loss.

The disclosed issue to watch is management’s ongoing technical assessment of flood-related damage and the final insurance claim, whose amount and financial effect remain unresolved. Subsequent results will also show whether the Rs 92.4782 crore inventory balance converts into revenue after the Rs 41.0456 crore September-quarter sales level.