Neelamalai Agro H1 profit doubles on associate earnings

For the half year ended September 30, 2026, Neelamalai Agro Industries Limited reported consolidated net profit of Rs 26.90 crore, up from Rs 13.08 crore a year earlier, after recognising Rs 28.26 crore as its share of net profit from associates and a joint venture. The group recorded a Rs 19.97 lakh loss before those equity-accounted earnings and tax.

What drove Neelamalai Agro’s H1 profit increase?

Neelamalai Agro’s H1 profit increase was driven by Rs 28.26 crore of equity-accounted profit from associates and a joint venture, compared with Rs 13.81 crore in the half year ended September 30, 2025. This contribution increased by Rs 14.44 crore and was larger than the Rs 19.97 lakh loss recorded before the associate and joint-venture share and tax.

Profit before tax increased to Rs 28.06 crore in H1 2026 from Rs 13.85 crore a year earlier. Current tax was Rs 95.00 lakh and deferred tax was Rs 20.42 lakh, resulting in a total tax charge of Rs 1.15 crore and net profit of Rs 26.90 crore, against Rs 13.08 crore in H1 2025.

The quarterly figures also show that equity-accounted earnings were the largest contributor in both periods of H1. Neelamalai Agro recorded Rs 14.22 crore as its share of associate and joint-venture profit in the quarter ended September 30, 2026, and Rs 14.04 crore in the quarter ended June 30, 2026; the comparable September 2025 quarter contributed Rs 7.18 crore.

How did Neelamalai Agro’s underlying operations change?

Neelamalai Agro reported revenue from operations of Rs 13.08 crore for H1 2026, compared with Rs 11.30 crore in H1 2025. Other income rose to Rs 2.60 crore from Rs 2.16 crore, taking total income to Rs 15.68 crore, while total expenses increased to Rs 15.88 crore from Rs 13.42 crore.

The resulting Rs 19.97 lakh loss before equity-accounted income and tax compared with a Rs 4.19 lakh profit in the previous-year half. The consolidated profit growth therefore arose after the inclusion of associate and joint-venture earnings, rather than from the income-and-expense balance before those earnings.

Employee-benefit expense declined to Rs 7.35 crore from Rs 7.82 crore, while other expenditure fell to Rs 4.33 crore from Rs 4.78 crore. These reductions were offset in part by the inventory-change line, which was an expense of Rs 1.35 crore in H1 2026 compared with a Rs 1.31 crore gain in H1 2025.

Cost of materials consumed rose to Rs 1.69 crore from Rs 1.04 crore, and depreciation and amortisation increased to Rs 1.03 crore from Rs 94.41 lakh. Other income included a Rs 2.11 crore net fair-value gain on investments, compared with a Rs 1.65 crore gain in the prior-year half, while the fair-value loss on biological assets was Rs 13.18 lakh against Rs 14.51 lakh.

Which entities contribute to Neelamalai Agro’s equity earnings?

Neelamalai Agro’s consolidated financial results include AVT Natural Products Limited and Midland Corporate Advisory Services Private Limited as associates, and AVT McCormick Ingredients Private Limited as a joint venture. The filing identifies these three entities as the investments whose results are included under the equity method for the quarter and half year ended September 30, 2026.

The auditor stated that one associate contributed Rs 24.79 crore of share of net profit after tax for H1 2026, together with Rs 2.19 crore of other comprehensive income. That associate’s interim financial information was reviewed by another auditor, whose report was considered in the consolidated limited review.

A second associate contributed Rs 2.34 lakh of share of net profit after tax for H1 2026, according to the auditor’s other-matters section. Its interim financial information was not reviewed by its auditor, and the auditor relied on information certified by Neelamalai Agro’s management, stating that the amounts were not material to the holding company.

The total Rs 28.26 crore share of profit reported in the consolidated statement exceeds the two associate contributions separately disclosed by the auditor. The remaining amount is included within the joint venture’s contribution, although the filing does not provide a standalone H1 profit figure for AVT McCormick Ingredients Private Limited.

What do Neelamalai Agro’s balance sheet and cash flows show?

Neelamalai Agro’s investments accounted for using the equity method increased to Rs 287.86 crore at September 30, 2026 from Rs 261.64 crore at March 31, 2026. Total assets rose to Rs 366.29 crore from Rs 338.03 crore, while total equity increased to Rs 355.16 crore from Rs 327.26 crore over the six-month period.

Total liabilities were Rs 11.13 crore at September 30, 2026, compared with Rs 10.77 crore at March 31, 2026. Current liabilities increased to Rs 11.03 crore from Rs 10.67 crore, while non-current provisions remained Rs 9.72 lakh at both dates.

Net cash used in operating activities was Rs 2.02 crore in H1 2026, compared with Rs 83.20 lakh used in H1 2025. The cash-flow statement starts with profit before tax of Rs 28.06 crore but deducts the Rs 28.26 crore share of associate and joint-venture profit in reconciling the result to operating cash flow.

Investing activities generated Rs 3.28 crore, compared with Rs 3.50 crore in the prior-year half, including Rs 4.32 crore of dividends received from associates and the joint venture. Financing activities used Rs 1.24 crore for dividends paid, and cash and cash equivalents ended H1 at Rs 43.22 lakh, compared with Rs 41.99 lakh at the start of the financial year.

How were Neelamalai Agro’s results reviewed and qualified?

Neelamalai Agro’s consolidated financial results for the quarter and half year ended September 30, 2026 received a limited-review conclusion from PKF Sridhar & Santhanam LLP. The auditor said nothing had come to its attention indicating that the statement failed to make required disclosures or contained a material misstatement.

The limited review was not an audit, and the auditor said its procedures principally involved enquiries and analytical work, providing less assurance than an audit. Its conclusion regarding one associate relied on the report of that associate’s other auditor, while the second associate’s figures were based on management-certified interim information.

Neelamalai Agro identified plantations as its significant reportable segment and therefore did not provide separate segment reporting. It also stated that seasonal conditions mean quarterly results are not indicative of expected full-year performance.

Basic and diluted earnings per share were Rs 432.46 for H1 2026, compared with Rs 210.32 for H1 2025, and the figures were not annualised. Paid-up equity share capital was Rs 62.21 lakh at September 30, 2026, unchanged from March 31, 2026.

Conclusion

Neelamalai Agro’s Rs 26.90 crore H1 consolidated profit was principally supported by Rs 28.26 crore of equity-accounted earnings from associates and a joint venture. Revenue from operations rose by Rs 1.78 crore to Rs 13.08 crore, but total expenses of Rs 15.88 crore remained above total income of Rs 15.68 crore before the investee contribution was recognised.

The next results will show whether associate and joint-venture earnings remain near the Rs 14 crore reported in each of the first two quarters of H1, and whether the plantation business moves beyond its Rs 19.97 lakh pre-equity loss. Neelamalai Agro has cautioned that plantation-sector seasonality means quarterly figures should not be treated as an indication of full-year performance.