Prakash Industries Q2 profit lower by Rs 5 lakh under Ind AS

Prakash Industries Limited reported profit after tax of Rs 65.37 crore for the quarter ended September 30, 2026, but its reviewer said profit and total comprehensive income would each have been Rs 5 lakh lower had deferred tax been accounted for under Ind AS 12, Income Taxes.

Why would Prakash Industries’ Q2 profit be Rs 5 lakh lower?

Prakash Industries would have reported Rs 5 lakh less net profit for the September 2026 quarter if it had recognised the deferred-tax liability through profit or loss under Indian Accounting Standard 12, or Ind AS 12. The independent review report said Prakash Industries adjusted the Rs 5 lakh deferred-tax liability against its securities premium account under a court order instead.

The reviewer made the same observation for the six months ended September 30, 2026, when Rs 1.70 crore of deferred-tax liability was adjusted against securities premium. It said net profit and total comprehensive income for that half year would each have been lower by Rs 1.70 crore under Ind AS 12. The report was issued on November 12, 2026 following a limited review conducted under Standard on Review Engagements 2410.

The filing identifies the matter as an accounting treatment issue involving the location of the deferred-tax adjustment. Prakash Industries’ September 30, 2026 balance sheet reported deferred-tax liabilities of Rs 96.72 crore, compared with Rs 95.02 crore at March 31, 2026. Its financial-results notes separately recorded the Rs 5 lakh quarterly and Rs 1.70 crore half-year deferred-tax adjustments against the securities premium account.

How do Prakash Industries’ reported and adjusted earnings compare?

Prakash Industries reported September-quarter profit after tax of Rs 65.37 crore, which would be Rs 65.32 crore after the reviewer’s stated Rs 5 lakh effect. Reported total comprehensive income was Rs 63.21 crore, including a Rs 2.16 crore remeasurement loss on defined-benefit plans, and would be Rs 63.16 crore after the same effect.

For the half year ended September 30, 2026, Prakash Industries reported profit after tax of Rs 136.64 crore and total comprehensive income of Rs 132.33 crore. Applying the reviewer’s stated Rs 1.70 crore effect gives implied figures of Rs 134.94 crore and Rs 130.63 crore, respectively. The reported half-year comprehensive income included a Rs 4.31 crore remeasurement loss on defined-benefit plans.

The reviewer said its conclusion was subject to this deferred-tax observation. Apart from that matter, it said nothing had come to its attention that caused it to believe the results had not disclosed information required under Regulation 33 of the Securities and Exchange Board of India listing regulations, or that they contained a material misstatement.

What changed in Prakash Industries’ tax treatment during the half year?

Prakash Industries said it opted for the new tax regime under the Income Tax Act, 2025, effective April 1, 2026, and that the Section 80-IA tax exemption was consequently no longer available. It said current tax and deferred tax were calculated accordingly. The September-quarter statement showed current minimum alternate tax, or MAT, of Rs 18.24 crore, while the half-year current MAT charge was Rs 39.71 crore.

Reported profit after tax rose to Rs 65.37 crore in the quarter ended September 30, 2026 from Rs 61.57 crore in the corresponding quarter a year earlier, an increase of Rs 3.80 crore. In contrast, half-year profit after tax fell by Rs 16.33 crore to Rs 136.64 crore from Rs 152.97 crore in the corresponding six months of 2025, before the reviewer’s stated Ind AS 12 effect.

The quarterly result also showed profit after tax of Rs 71.27 crore for the quarter ended June 30, 2026, compared with Rs 65.37 crore in the September quarter. The September-quarter current MAT charge of Rs 18.24 crore was lower than Rs 21.47 crore in the preceding June quarter, while reported profit after tax also declined by Rs 5.90 crore between the two quarters.

What do Prakash Industries’ operating figures show for Q2?

Prakash Industries reported revenue from operations of Rs 896.12 crore for the quarter ended September 30, 2026, compared with Rs 723.16 crore a year earlier, an increase of Rs 172.96 crore. Total income, including Rs 7.20 crore of other income, was Rs 903.32 crore, while profit before tax was Rs 83.61 crore compared with Rs 61.57 crore in the corresponding 2025 quarter.

Revenue from operations declined from Rs 1,032 crore in the quarter ended June 30, 2026 to Rs 896.12 crore in the September quarter. Finance costs were Rs 21.92 crore in the September quarter, compared with Rs 10.34 crore a year earlier, and other expenses rose to Rs 179.07 crore from Rs 119.76 crore in the corresponding prior-year quarter.

For the half year ended September 30, 2026, revenue from operations increased to Rs 1,928.12 crore from Rs 1,760.24 crore in the prior-year period. Profit before tax increased to Rs 176.35 crore from Rs 152.97 crore. Prakash Industries operates in one reportable segment, Iron & Steel, under Ind AS 108, Operating Segments, so the filing does not provide separate financial results by product line or division.

What is Prakash Industries targeting at its coal mine?

Prakash Industries said its Bhaskarpara Coal Mine extracted about 2.81 lakh metric tonnes of coal during the September 2026 quarter. Management said the mine is likely to achieve coal extraction of 1.2 million tonnes in financial year 2027, compared with 1 million tonnes achieved in the preceding financial year.

The financial-results release also described September-quarter net sales of Rs 896 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 149 crore. It said these represented year-on-year growth of 24% and 30%, respectively, from net sales of Rs 723 crore and EBITDA of Rs 114 crore in the corresponding quarter of the prior financial year.

Management’s coal-extraction target is forward-looking. Prakash Industries’ release stated that actual results, financial condition and performance may differ materially from forward-looking statements because of known and unknown risks, uncertainties and other factors.

Conclusion

The reviewer’s observation means Prakash Industries’ reported Rs 65.37 crore September-quarter profit after tax and Rs 63.21 crore total comprehensive income would each have been Rs 5 lakh lower if the deferred-tax liability had been accounted for under Ind AS 12. For the half year, the stated effect was Rs 1.70 crore against reported profit after tax of Rs 136.64 crore.

Readers can next watch whether Prakash Industries continues to adjust deferred-tax liabilities against securities premium under the court order and how the tax-regime change effective April 1, 2026 affects current and deferred tax charges. Management has also set a financial year 2027 coal-extraction target of 1.2 million tonnes after extracting about 2.81 lakh metric tonnes during the September quarter.