Nahar Capital’s half-year profit triples to Rs 94.66 crore

Nahar Capital and Financial Services Limited reported consolidated profit of Rs 94.66 crore for the half year ended 30 September 2026, up from Rs 31.87 crore a year earlier. Nahar Capital recorded Rs 83.57 crore as its share of profit from associates, compared with Rs 21.07 crore in the corresponding 2025 half year.

Why did Nahar Capital’s consolidated profit rise?

Nahar Capital’s consolidated profit rose primarily because its share of associate-company profit increased by Rs 62.50 crore year on year. Associate profit reached Rs 83.57 crore in the half year ended 30 September 2026, while total profit for the period was Rs 94.66 crore, compared with Rs 31.87 crore a year earlier.

The consolidated segment statement shows profit after tax before associate profit at Rs 11.09 crore for the 2026 half year, against Rs 10.80 crore in the prior-year period. This was a Rs 0.29 crore increase, far smaller than the movement in the associate contribution, which accounted for most of the increase in consolidated earnings.

Profit before tax rose to Rs 106.64 crore from Rs 44.08 crore, while total tax expense declined to Rs 11.98 crore from Rs 12.22 crore. The filing says deferred tax includes tax on Indian Accounting Standards, or Ind AS, adjustments of Nahar Capital and deferred tax of associates; it also says the current quarter used the new tax regime, making quarterly comparisons with earlier periods not comparable.

Which associates contributed to Nahar Capital’s profit?

Nahar Capital’s consolidated results include Nahar Poly Films Limited and Nahar Spinning Mills Limited as its two associate companies. The company said it had no subsidiary or joint venture as at 30 September 2026, and accounted for associates under the equity method under Ind AS 28.

The filing does not disclose how the Rs 83.57 crore half-year associate profit was split between Nahar Poly Films and Nahar Spinning Mills. It reports only the combined contribution, which was Rs 47.62 crore in the quarter ended 30 September 2026, against Rs 6.33 crore in the September 2025 quarter.

Associate profit was Rs 35.95 crore in the June 2026 quarter and Rs 47.62 crore in the September 2026 quarter. However, total consolidated quarterly profit declined to Rs 27.22 crore in September from Rs 67.44 crore in June, as September included tax expense of Rs 28.92 crore while June recorded a tax credit of Rs 16.94 crore.

How did Nahar Capital’s operating segments perform?

Nahar Capital’s consolidated segment revenue increased to Rs 30.39 crore for the half year ended 30 September 2026 from Rs 29.91 crore a year earlier. Investment and financial activity revenue fell to Rs 27.12 crore from Rs 28.45 crore, while real estate revenue rose to Rs 3.27 crore from Rs 1.47 crore.

Investment and financial activity reported segment profit of Rs 24.87 crore, down from Rs 26.20 crore in the prior-year half. Real estate segment profit increased to Rs 2.06 crore from Rs 0.56 crore, taking the combined segment result to Rs 26.93 crore from Rs 26.76 crore.

Finance costs were Rs 0.41 crore in both half-year periods, while other unallocated expenses rose to Rs 3.46 crore from Rs 3.33 crore. Profit before tax and before the share of associate profit was Rs 23.07 crore, compared with Rs 23.02 crore, showing that the large consolidated-profit change occurred through the associate line rather than the two operating segments.

What changed in Nahar Capital’s assets, equity and cash?

Nahar Capital’s consolidated assets stood at Rs 1,943.06 crore on 30 September 2026, compared with Rs 1,781.99 crore at 31 March 2026. Investment and financial activity assets increased to Rs 1,866.32 crore from Rs 1,704.35 crore, while real estate assets decreased to Rs 76.74 crore from Rs 77.65 crore.

Investments on the consolidated balance sheet rose to Rs 1,828.88 crore at 30 September from Rs 1,677.85 crore at 31 March. Total consolidated liabilities declined to Rs 163.24 crore from Rs 174.25 crore, while total equity rose to Rs 1,779.82 crore from Rs 1,607.74 crore.

Cash and cash equivalents were Rs 76.33 lakh at 30 September 2026, compared with Rs 17.01 lakh at the beginning of the half year. Net cash used in operating activities was Rs 49.33 crore, investing activities generated Rs 50.54 crore of net cash inflow, and financing activities used Rs 2.92 crore; investments accounted for a Rs 44.08 crore operating working-capital outflow.

How were Nahar Capital’s results reviewed?

Nahar Capital’s board approved the unaudited quarterly and half-year results on 30 October 2026 after review by its Audit Committee. The figures for the period ended 30 September 2026 were subject to limited review by the statutory auditors, rather than a full audit.

The auditors conducted the consolidated review under Standard on Review Engagements 2410, which relies primarily on inquiries and analytical procedures. Their report stated that nothing had come to their attention to suggest that the consolidated unaudited results did not make the required disclosures or contained a material misstatement.

The review report describes the assurance as moderate and says a review is substantially less extensive than an audit. Nahar Capital’s results were prepared under Ind AS 34, Interim Financial Reporting, and the company said the Board took them on record at its 30 October 2026 meeting.

Conclusion

Nahar Capital’s Rs 94.66 crore consolidated half-year profit was principally the result of a Rs 83.57 crore contribution from associates, versus Rs 21.07 crore a year earlier. Its operating segments delivered a comparatively modest change, with revenue rising to Rs 30.39 crore and profit before tax and associate profit reaching Rs 23.07 crore.

The key matter to watch in subsequent disclosures is comparability of tax outcomes, as Nahar Capital said the current quarter used the new tax regime while earlier quarters used the old regime. The September quarter also showed associate profit of Rs 47.62 crore alongside tax expense of Rs 28.92 crore, two components that materially affected the half-year result.