PBM Polytex posts Rs 5.80 crore first-half profit before tax

PBM Polytex Limited (PBM Polytex) reported standalone profit before tax of Rs 5.80 crore for the half year ended September 30, 2026, reversing a Rs 2.83 crore loss a year earlier. Net cash from operating activities was Rs 24.75 crore, supported mainly by a Rs 20.95 crore net working-capital inflow.

What did PBM Polytex report for the first half?

PBM Polytex reported standalone profit before tax of Rs 5.80 crore for the half year ended September 30, 2026, compared with a Rs 2.83 crore loss before tax in the corresponding 2025 period. Profit after tax was Rs 5.20 crore, against a Rs 2.13 crore loss a year earlier, while basic and diluted earnings per share changed to Rs 7.56 from negative Rs 3.10.

The September 2026 quarter contributed Rs 3.49 crore of standalone profit before tax, compared with Rs 3.31 crore in the preceding June quarter. The company’s Board approved the unaudited standalone and consolidated results on November 14, 2026, after review by its Audit Committee.

How did PBM Polytex move from loss to profit?

PBM Polytex’s reported pre-tax outcome improved by Rs 8.63 crore year on year, changing from a Rs 2.83 crore first-half loss to Rs 5.80 crore of profit. The standalone statement does not show exceptional items for either first-half period, so the filing does not attribute the movement to separately disclosed exceptional gains or charges.

PBM Polytex reports manufacturing of cotton yarn as its sole reportable business segment under Indian Accounting Standard 108, or Ind AS 108, on operating segments. The filing therefore does not provide separate revenue, margin or profit data by yarn product, customer category or geography for the half year ended September 30, 2026.

Total comprehensive income was Rs 5.22 crore in the 2026 first half, compared with a total comprehensive loss of Rs 1.34 crore in the year-earlier half. Other comprehensive income was Rs 4.03 lakh, versus a loss of Rs 32.60 lakh, and included remeasurements of the defined-benefit obligation and associated tax effects.

What generated PBM Polytex’s operating cash flow?

PBM Polytex generated Rs 24.75 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 29.10 crore in the corresponding 2025 period. The cash inflow exceeded the Rs 5.80 crore profit before tax because the cash-flow statement records Rs 20.95 crore of net cash generated through working-capital changes.

Inventory changes supplied Rs 22.43 crore of cash, while changes in trade and other receivables added Rs 2.51 crore. Changes in trade and other payables used Rs 4.10 crore. Net working-capital cash generation was lower than the prior-year Rs 31.13 crore, despite the shift in pre-tax earnings from a loss to a profit.

Operating profit before working-capital changes was Rs 7.92 crore, compared with an operating loss of Rs 1.93 crore in the previous first half. The reconciliation included Rs 1.82 crore of depreciation and amortisation, Rs 25.34 lakh of interest and other borrowing cost, and a Rs 1.52 crore fair-value effect on investments. Direct taxes paid, net of refunds, were Rs 7.55 lakh.

How did PBM Polytex use cash during the half year?

PBM Polytex reported net cash used in investing activities of Rs 35.89 crore for the half year ended September 30, 2026, compared with Rs 34.54 crore used a year earlier. The cash-flow statement includes a Rs 34.25 crore movement described as proceeds from sale or redemption of investments, recorded as an outflow in the presented statement, alongside Rs 2.08 crore spent on property, plant, equipment and intangible assets.

Proceeds from sale or disposal of property, plant and equipment were Rs 27.35 lakh, up from Rs 10.13 lakh in the comparable 2025 half. Movement in other bank balances contributed Rs 15.13 lakh, compared with Rs 2,000 a year earlier. The reported investing outflow exceeded operating cash generation and contributed to the decline in cash balances during the period.

Financing activities generated Rs 25.31 lakh, compared with Rs 2.96 crore in the prior-year half. Net short-term borrowings increased by Rs 56.18 lakh, while interest and other borrowing costs paid were Rs 24.36 lakh, lease-liability payments were Rs 16.47 lakh, and dividend paid was Rs 4,000.

What was PBM Polytex’s cash position and review status?

PBM Polytex closed September 30, 2026 with cash and cash equivalents of Rs 1.98 crore, down from Rs 8.83 crore at the beginning of the half year. The company reported a net decrease of Rs 6.85 crore during the period, whereas cash and cash equivalents increased by Rs 2.48 crore in the corresponding 2025 half. The September 2025 closing balance was Rs 29.31 lakh.

Mahendra N. Shah & Co. issued a limited review report on the standalone results dated November 14, 2026. The auditor said nothing had come to its attention that caused it to believe the statement had not made the disclosures required under listing regulations or contained a material misstatement. The report states that a review provides moderate assurance and has a smaller scope than an audit.

The consolidated review includes Eurotex Industries and Exports Limited as an associate. The auditor noted that Eurotex’s Kolhapur manufacturing plants have been discontinued since March 25, 2019, and their closure was announced on March 30, 2022. Eurotex management has stated that it plans to develop available land after settling lender-bank dues through borrowing from promoter-group companies.

Conclusion

PBM Polytex’s standalone first-half result shows a reported reversal from a Rs 2.83 crore pre-tax loss to Rs 5.80 crore profit, with profit after tax reaching Rs 5.20 crore. Operating cash flow of Rs 24.75 crore remained materially above profit before tax, although it was lower than the previous year because net working-capital generation declined to Rs 20.95 crore from Rs 31.13 crore.

The next results will indicate whether PBM Polytex can maintain profitability in its cotton-yarn business after September 30, 2026 and whether inventory, receivables and payables continue to produce substantial cash effects. The filing also identifies Eurotex management’s plan to develop available land as a future matter to watch for the associate company.