Neelamalai Agro half-year profit falls 10% despite revenue rise

Neelamalai Agro Industries Limited reported standalone profit after tax of Rs 2.96 crore for the half year ended September 30, 2026, down 10% from a year earlier, although revenue from operations increased 16% to Rs 13.08 crore and total expenses rose 18% to Rs 15.88 crore.

Why did Neelamalai Agro’s half-year profit decline?

Neelamalai Agro’s standalone profit after tax declined to Rs 2.96 crore in the half year ended September 30, 2026, from Rs 3.28 crore in the corresponding prior-year period. Profit before tax nevertheless increased to Rs 4.12 crore from Rs 4.05 crore, while total tax expense rose to Rs 1.15 crore from Rs 77.06 lakh.

The September 2026 quarter also recorded lower year-on-year profit after tax of Rs 1.67 crore, compared with Rs 2.21 crore in the September 2025 quarter. Revenue from operations increased to Rs 6.67 crore from Rs 4.87 crore, but total expenses rose to Rs 8.92 crore from Rs 6.33 crore and other income was Rs 4.72 crore.

How much did Neelamalai Agro’s operating revenue grow?

Neelamalai Agro’s revenue from operations grew 16% to Rs 13.08 crore in the half year ended September 30, 2026, from Rs 11.30 crore a year earlier. The September quarter generated Rs 6.67 crore, above Rs 6.41 crore in the preceding June 2026 quarter and Rs 4.87 crore in the September 2025 quarter.

Neelamalai Agro identifies plantations as its main operation and significant reportable segment, so it does not provide a further segment revenue split. The company also said the sector is seasonal and quarterly results are not indicative of expected full-year performance, limiting conclusions from the September-quarter revenue figure alone.

Which expenses rose faster than Neelamalai Agro’s revenue?

Neelamalai Agro’s total expenses increased 18% to Rs 15.88 crore, exceeding the 16% increase in revenue from operations. Changes in inventories of finished goods, work-in-progress and stock-in-trade became an expense of Rs 1.35 crore, compared with an income effect of Rs 1.31 crore in the prior-year half, a Rs 2.66 crore adverse swing.

Cost of materials consumed increased to Rs 1.69 crore from Rs 1.04 crore, while depreciation and amortisation rose to Rs 1.03 crore from Rs 94.41 lakh. Employee benefits expense declined to Rs 7.35 crore from Rs 7.82 crore and other expenditure fell to Rs 4.33 crore from Rs 4.78 crore, but these reductions did not offset the inventory movement and higher materials cost.

How important was other income to Neelamalai Agro’s results?

Neelamalai Agro reported other income of Rs 6.92 crore for the half year, compared with Rs 6.17 crore a year earlier, representing about 35% of total income of Rs 20.00 crore. Dividend income from an associate and joint venture was Rs 4.32 crore, up from Rs 4.01 crore in the corresponding period.

Net fair-value gains on investments were Rs 2.11 crore for the half year, compared with Rs 1.65 crore a year earlier. The September 2026 quarter recorded a fair-value loss of Rs 5.87 lakh, whereas the June 2026 quarter recorded a gain of Rs 2.17 crore, leaving the half-year figure positive.

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

Neelamalai Agro had standalone total assets of Rs 84.42 crore at September 30, 2026, compared with Rs 82.38 crore at March 31, 2026. Total equity rose to Rs 73.29 crore from Rs 71.61 crore, while total liabilities increased to Rs 11.13 crore from Rs 10.77 crore.

Current investments were Rs 35.11 crore at September 30, compared with Rs 34.31 crore at March 31, while other investments were Rs 20.15 crore against Rs 20.08 crore. Investments in associates and joint ventures were unchanged at Rs 5.99 crore, and cash and cash equivalents increased to Rs 43.22 lakh from Rs 41.99 lakh.

Operating activities used Rs 2.02 crore of cash during the half year, compared with cash use of Rs 88.20 lakh a year earlier. Investing activities generated Rs 3.28 crore against Rs 3.50 crore, while financing activities used Rs 1.24 crore, compared with Rs 1.87 crore in the prior-year half.

What did Neelamalai Agro’s board and auditor report?

Neelamalai Agro’s board approved the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026, at its November 13, 2026 meeting. The audit committee reviewed the results before board approval, and the statutory auditor conducted a limited review of the interim standalone statement.

PKF Sridhar & Santhanam LLP said nothing had come to its attention to indicate that the standalone statement lacked required disclosures or contained a material misstatement. Separately, shareholders approved a final dividend of Rs 20 per equity share of face value Rs 10 for the year ended March 31, 2026, at the August 19, 2026 annual general meeting, and Neelamalai Agro said it paid the dividend.

Conclusion

The half-year outcome shows that higher plantation revenue did not by itself determine reported earnings. The Rs 2.66 crore inventory-cost swing and higher tax charge offset the modest rise in profit before tax, while Rs 4.32 crore of associate and joint-venture dividend income remained a material contributor to total income.

The next reported periods will indicate whether seasonal plantation operations alter the cost and revenue pattern, as Neelamalai Agro has said quarterly performance does not indicate the expected full-year outcome. Investors can also monitor the direction of other income, which included Rs 2.11 crore of half-year fair-value gains on investments.