Mish Designs revenue rises 33%, profit falls 86% in H1

Mish Designs Limited reported revenue from operations of Rs 8.05 crore for the half year ended September 30, 2026, up 33% from Rs 6.04 crore a year earlier, but standalone profit after tax fell 86% to Rs 2.38 lakh from Rs 17.06 lakh as the inventory-change line turned into a Rs 1.74 crore expense.

Why did Mish Designs profit decline despite higher H1 revenue?

Mish Designs’ profit declined because total expenses increased more than total revenue in the half year ended September 30, 2026. Total revenue rose by Rs 2.06 crore to Rs 8.10 crore from Rs 6.05 crore, while total expenses rose by Rs 2.28 crore to Rs 8.08 crore from Rs 5.80 crore, leaving profit before tax of Rs 2.38 lakh versus Rs 24.34 lakh.

The largest year-on-year movement was in changes in inventories of finished goods, work in progress and stock-in-trade. The line was a Rs 1.74 crore expense in the September 2026 half year, compared with a Rs 81.67 lakh credit in the September 2025 half year, a movement of Rs 2.56 crore. The filing does not provide management’s explanation for this movement.

Which costs changed in Mish Designs’ half-year results?

Mish Designs recorded a Rs 55.05 lakh fall in cost of materials consumed to Rs 4.19 crore from Rs 4.74 crore, but this was offset by the inventory charge and increases in employee and other expenses. Employee benefits expense rose to Rs 61.25 lakh from Rs 47.06 lakh, while other expenses increased to Rs 1.39 crore from Rs 1.23 crore.

Finance cost fell by Rs 4.25 lakh to Rs 9.68 lakh from Rs 13.93 lakh, while depreciation and amortisation was Rs 4.80 lakh against Rs 4.89 lakh. Mish Designs reported no exceptional, extraordinary or prior-period items in either half year, meaning the profit movement reflected the operating lines reported in its statement.

Mish Designs reported no current-tax, deferred-tax or short/excess income-tax provision for the September 2026 half year. Profit after tax therefore matched profit before tax at Rs 2.38 lakh. In the September 2025 half year, profit after tax was Rs 17.06 lakh compared with profit before tax of Rs 24.34 lakh.

How did Mish Designs’ balance sheet change by September 2026?

Mish Designs reported total assets of Rs 27.73 crore at September 30, 2026, compared with Rs 25.71 crore at March 31, 2026. Inventories fell by Rs 1.54 crore to Rs 12.80 crore, while trade receivables increased by Rs 1.60 crore to Rs 9.37 crore over the same period.

Short-term borrowings declined to Rs 2.90 crore at September 30 from Rs 6.91 crore at March 31. Trade payables to creditors other than micro and small enterprises increased to Rs 2.89 crore from Rs 68.66 lakh, and other current liabilities increased to Rs 2.46 crore from Rs 89.61 lakh.

Share capital increased to Rs 3.53 crore from Rs 3.18 crore, while reserves and surplus rose to Rs 15.20 crore from Rs 13.53 crore. The September balance sheet also reported Rs 22.50 lakh received against share warrants and Rs 20.33 lakh of non-current investments, neither of which appeared at March 31, 2026.

What did Mish Designs do with its preferential issue proceeds?

Mish Designs raised and utilised Rs 2.23 crore of net proceeds by September 30, 2026. Its utilisation statement allocated Rs 1.67 crore to working-capital requirements and Rs 55.63 lakh to general corporate purposes, with nil unutilised proceeds and nil deviation against those objectives.

Following shareholder approval at the extraordinary general meeting on June 5, 2026, Mish Designs allotted 263,160 equity shares and 245,615 warrants on July 28, 2026. Each instrument had a face value of Rs 10 and an issue price of Rs 57, including a Rs 47 premium; the company received Rs 1.50 crore for the equity shares.

On September 9, 2026, 87,720 warrants were converted into an equal number of equity shares after receipt of the remaining 75% of the issue price, amounting to Rs 37.5003 lakh. Mish Designs disclosed intended preferential-issue proceeds of Rs 2.90 crore, while its September 30 utilisation statement recorded Rs 2.23 crore raised and used.

What does Mish Designs’ cash flow show for the September 2026 half year?

Mish Designs generated Rs 2.40 crore of net cash from operating activities in the September 2026 half year, compared with Rs 5.19 crore of cash used in operations for the year ended March 31, 2026. The half-year operating cash figure included increases of Rs 2.22 crore in trade payables and Rs 1.56 crore in other current liabilities, alongside a Rs 1.54 crore decrease in inventory.

Trade receivables absorbed Rs 1.60 crore of cash and short-term loans and advances absorbed Rs 1.24 crore. Investing activities used Rs 21.14 lakh, including Rs 20.33 lakh invested in equity shares of I’Designs Fashions Pvt Ltd, while financing activities used Rs 1.93 crore after Rs 4.65 crore of short-term secured-borrowing repayments.

The cash-flow statement reported a Rs 25.45 lakh increase in cash and cash equivalents during the half year and closing cash of Rs 76.73 lakh. Its listed cash components and the September 30 balance sheet instead show Rs 75.87 lakh, and the filing does not explain the Rs 86,000 difference. Mish Designs also reported one business segment, so it provided no segment-wise revenue or profit split.

Conclusion

Mish Designs delivered 33% growth in revenue from operations in the half year ended September 30, 2026, but this did not translate into comparable earnings growth. The shift to a Rs 1.74 crore inventory-change expense from a Rs 81.67 lakh credit, together with higher employee and other expenses, reduced standalone profit after tax to Rs 2.38 lakh.

The next disclosed matters to watch are the stated Rs 2.90 crore preferential-issue plan relative to the Rs 2.23 crore raised and utilised by September 30, 2026, and the treatment of the outstanding warrants after 87,720 conversions on September 9. A subsequent filing may also clarify the Rs 86,000 difference between the cash-flow closing balance and the balance-sheet cash figure.