Mittal Sections posts Rs 1.98 crore first-half loss as costs rise

Mittal Sections Limited reported a Rs 1.98 crore loss for the half year ended 30 September 2026, reversing a Rs 2.34 crore profit a year earlier, as total expenses reached Rs 70.92 crore and exceeded Rs 68.18 crore of total income; revenue from operations fell to Rs 67.79 crore.

Why did Mittal Sections report a first-half loss?

Mittal Sections reported a loss because its expenses exceeded total income by Rs 2.74 crore before tax in the six months ended 30 September 2026. Profit before tax was Rs 3.30 crore in the corresponding six months ended 30 September 2025, producing a Rs 6.04 crore adverse change. The company recorded no exceptional or extraordinary items in either period.

A deferred-tax credit partly reduced the pre-tax loss without restoring profitability. Mittal Sections recorded a deferred-tax credit of Rs 76.20 lakh in the latest half year, compared with total tax expense of Rs 96.64 lakh a year earlier. Loss from continuing operations was Rs 1.98 crore, while discontinued operations contributed neither profit nor loss in both half-year periods.

How did Mittal Sections' income and expenses change?

Mittal Sections' revenue from operations fell to Rs 67.79 crore from Rs 70.25 crore, while total expenses increased to Rs 70.92 crore from Rs 66.98 crore. Other income rose to Rs 38.88 lakh from Rs 3.14 lakh, but this did not offset the revenue decline and higher cost base. Total income therefore declined to Rs 68.18 crore from Rs 70.28 crore.

Finance cost increased to Rs 2.42 crore from Rs 1.00 crore in the prior-year half, employee-benefit expense rose to Rs 1.90 crore from Rs 77.15 lakh, and other expenses increased to Rs 6.01 crore from Rs 5.02 crore. Depreciation and amortisation expense also rose to Rs 54.66 lakh from Rs 41.77 lakh. These disclosed movements accompanied the Rs 3.94 crore increase in total expenses.

The September 2026 half was also below the six months ended 31 March 2026, which the filing identifies as the difference between the audited full-year result and the September 2025 half-year result. Revenue from operations was Rs 78.33 crore, total expenses were Rs 77.31 crore and profit for the period was Rs 1.12 crore in that March 2026 half. Income and the final result both declined in the latest half year.

What happened to Mittal Sections' earnings per share?

Mittal Sections reported basic and diluted earnings per share of negative Rs 1.71 for the half year ended 30 September 2026, compared with positive Rs 2.97 a year earlier. Earnings per share, or EPS, is calculated using weighted-average share capital received by the company, according to the results notes. The negative EPS followed the Rs 1.98 crore loss for the period.

Paid-up equity share capital was Rs 11.57 crore at 30 September 2026, compared with Rs 7.87 crore in the corresponding 2025 half year. The shares have a face value of Rs 10 each. Mittal Sections said it issued 37 lakh equity shares at a premium of Rs 133 a share through its initial public offer and listed on the BSE SME platform on 14 October 2025.

What did Mittal Sections disclose about cash flow and borrowings?

Mittal Sections used Rs 7.88 crore in operating activities during the half year ended 30 September 2026, after an operating loss before working-capital changes of Rs 13.62 lakh. The largest disclosed working-capital movement was a Rs 8.36 crore increase in short-term loans and advances. Inventories increased by Rs 19.59 lakh, while trade receivables reduced by Rs 2.65 lakh.

Investing activities used Rs 24.45 crore, including Rs 7.79 crore spent on fixed assets and Rs 17.05 crore of increases in long-term loans and advances. Financing activities supplied Rs 32.37 crore, led by Rs 36.21 crore of proceeds from long-term borrowings, while interest and other borrowing expenses paid were Rs 2.42 crore. Cash and cash equivalents ended at Rs 2.63 crore, compared with Rs 2.59 crore at the start of the year.

Mittal Sections separately disclosed loans and revolving facilities from banks or financial institutions of Rs 59.59 crore outstanding as of the filing date. The amount stated as in default was zero. The filing provides no repayment schedule or borrowing forecast.

What accounting and disclosure points did Mittal Sections report?

Mittal Sections said its audit committee and board approved the unaudited half-year results on 7 November 2026. Milind Nyati & Co. LLP conducted a limited review under Standard on Review Engagement 2410, rather than an audit. The results were prepared under Accounting Standard 25, Interim Financial Reporting.

Mittal Sections reported one business segment and therefore gave no segment-wise information under Accounting Standard 17, Segment Reporting. Management assessed the effect of Labour Codes effective from 21 November 2025 on employee-benefit obligations, including gratuity and leave, and said the impact on the September 2026 half-year results was not material. The filing also stated that one investor complaint was received or pending as of 7 November 2026.

Conclusion

Mittal Sections moved from a Rs 2.34 crore profit to a Rs 1.98 crore loss in the half year ended 30 September 2026 as revenue declined by Rs 2.46 crore and total expenses rose by Rs 3.94 crore. Higher finance cost, employee-benefit expense and other expenses coincided with the decline in operating revenue, while a deferred-tax credit narrowed but did not eliminate the pre-tax loss.

The next results will show whether the Rs 7.88 crore operating cash outflow and Rs 24.45 crore investing outflow change, and whether long-term borrowings continue after the Rs 36.21 crore inflow in the latest half year. Mittal Sections gave no earnings target or operating forecast in this filing, while one investor complaint remained received or pending as of 7 November 2026.