Organic Coatings Limited September loss widens despite doubled revenue

Organic Coatings reported a Rs 89.74 lakh net loss for the quarter ended 30 September 2026, widening from Rs 59.75 lakh a year earlier despite revenue from operations more than doubling to Rs 12.03 crore. Total expenses rose to Rs 12.95 crore, exceeding total income of Rs 12.05 crore for the quarter.

Why did Organic Coatings report a wider September-quarter loss?

Organic Coatings reported a Rs 89.74 lakh loss after tax for the quarter ended 30 September 2026, compared with a Rs 59.75 lakh loss in the quarter ended 30 September 2025. The loss also increased from Rs 36.08 lakh in the immediately preceding quarter ended 30 June 2026. The filing reported neither exceptional items nor tax expense for the September 2026 quarter.

Organic Coatings' total income was Rs 12.05 crore in the September 2026 quarter, while total expenses were Rs 12.95 crore, resulting in a pre-tax loss of Rs 89.74 lakh. In the year-earlier quarter, total income was Rs 5.56 crore and expenses were Rs 6.16 crore, producing a Rs 59.75 lakh loss. The company manufactures printing inks and allied products, but the filing does not provide product-level profit figures or explain the quarterly loss.

How much did Organic Coatings' revenue grow in September 2026?

Organic Coatings' revenue from operations rose to Rs 12.03 crore in the quarter ended 30 September 2026 from Rs 5.53 crore a year earlier and Rs 11.22 crore in the June 2026 quarter. This was an increase of about 117% year on year and about 7% from the preceding quarter. Other income was Rs 2.47 lakh, compared with Rs 2.81 lakh in the September 2025 quarter.

Organic Coatings generated Rs 23.25 crore of revenue from operations in the half year ended 30 September 2026, compared with Rs 12.61 crore in the corresponding 2025 period. Total income for the six months increased to Rs 23.29 crore from Rs 12.65 crore. The company said it has no different segments, so it did not provide a revenue split by printing inks, allied products, customer type or geography.

Which costs increased at Organic Coatings during the quarter?

Organic Coatings' cost of materials consumed increased to Rs 10.37 crore in the September 2026 quarter from Rs 3.57 crore a year earlier and Rs 8.52 crore in the June 2026 quarter. Materials were the largest disclosed expense line. Total expenses increased by Rs 6.79 crore year on year, against a Rs 6.49 crore rise in revenue from operations.

Other expenses rose to Rs 2.52 crore from Rs 1.53 crore in the September 2025 quarter, although they declined from Rs 2.60 crore in the preceding quarter. Employee benefits expense increased to Rs 47.10 lakh from Rs 35.39 lakh a year earlier. Finance costs were Rs 18.87 lakh, above Rs 18.26 lakh a year earlier, while depreciation and amortisation fell to Rs 21.87 lakh from Rs 22.66 lakh.

What do Organic Coatings' half-year results show?

Organic Coatings narrowed its loss to Rs 1.26 crore for the half year ended 30 September 2026 from Rs 1.45 crore in the corresponding period of 2025. The improvement for the six-month period occurred even though the September-quarter loss widened year on year, because the June 2026 quarterly loss was Rs 36.08 lakh. Basic and diluted loss per share was Rs 1.26, compared with Rs 1.45 a year earlier.

Organic Coatings recorded total expenses of Rs 24.54 crore during the first half, compared with total income of Rs 23.29 crore. Material costs rose to Rs 18.89 crore from Rs 9.38 crore, while other expenses increased to Rs 5.12 crore from Rs 3.19 crore. Employee benefits expense was Rs 96.79 lakh versus Rs 70.01 lakh, while finance costs declined to Rs 36.49 lakh from Rs 37.95 lakh.

How did Organic Coatings' cash and working capital change?

Organic Coatings' cash and cash equivalents fell to Rs 6.49 lakh at 30 September 2026 from Rs 97.30 lakh at 31 March 2026. Net cash used in operating activities was Rs 2.8488 crore in the half year ended 30 September 2026, compared with Rs 1.2399 crore generated from operations in the corresponding prior-year period. Financing activities generated Rs 2.0549 crore, largely reflecting higher current borrowings.

Organic Coatings' trade receivables increased to Rs 14.36 crore at 30 September 2026 from Rs 8.05 crore at 31 March 2026, while inventories rose to Rs 7.36 crore from Rs 5.35 crore. Trade payables increased to Rs 17.43 crore from Rs 11.97 crore and current borrowings rose to Rs 9.44 crore from Rs 6.89 crore. The cash-flow statement recorded a Rs 6.4082 crore use of cash from higher trade receivables during the half year.

What does Organic Coatings' balance sheet show?

Organic Coatings reported total assets of Rs 31.59 crore at 30 September 2026, up from Rs 24.28 crore at 31 March 2026, while total liabilities increased to Rs 32.82 crore from Rs 24.26 crore. Current assets were Rs 22.37 crore and current liabilities were Rs 28.36 crore at the September reporting date. Property, plant and equipment stood at Rs 8.75 crore, compared with Rs 9.07 crore at the preceding financial year-end.

Organic Coatings reported negative total equity of Rs 1.24 crore at 30 September 2026, compared with positive equity of Rs 2.27 lakh at 31 March 2026. Equity share capital was unchanged at Rs 9.97 crore, while other equity was negative Rs 11.21 crore versus negative Rs 9.95 crore. Soman Uday & Co.'s limited review report dated 5 November 2026 said nothing had come to its attention indicating that the unaudited results contained a material misstatement.

Conclusion

Organic Coatings' September-quarter revenue increased from Rs 5.53 crore to Rs 12.03 crore, but expenses rose above income and the quarterly loss widened to Rs 89.74 lakh. The half-year comparison was more favourable, with the loss narrowing to Rs 1.26 crore from Rs 1.45 crore, although higher receivables, inventories, payables and borrowings coincided with lower cash.

The filing discloses no earnings target, operating plan or scheduled financial event beyond the results announcement approved on 5 November 2026. The next set of results will therefore be relevant for changes in the Rs 14.36 crore receivables balance, Rs 7.36 crore inventories, Rs 6.49 lakh cash balance and the relationship between revenue growth and expenses.