Qualiance H1 profit falls 29% as garment revenue declines

Qualiance International Limited reported profit after tax of Rs 3.73 crore for the half year ended September 30, 2026, down 29% from Rs 5.24 crore a year earlier. Revenue from operations in its sole garment-manufacturing segment fell 19% to Rs 30.97 crore, while total income declined to Rs 32.27 crore.

Why did Qualiance’s September half-year profit fall?

Qualiance’s profit fell because total income declined year on year and tax expense increased, despite a reduction in total expenses. Profit after tax was Rs 3.73 crore for the half year ended September 30, 2026, compared with Rs 5.24 crore in the half year ended September 30, 2025. The filing did not provide management commentary on the operational reasons for the change.

Profit before tax was Rs 5.04 crore, compared with Rs 5.72 crore in the corresponding prior-year half year. Total tax expense was Rs 1.30 crore, against Rs 48.45 lakh a year earlier. The September 2025 period included a deferred-tax credit of Rs 1.52 crore, whereas the September 2026 period included a deferred-tax credit of Rs 82,000.

Qualiance reported basic and diluted earnings per share of Rs 3.63 for the September 2026 half year, compared with Rs 5.30 in the corresponding 2025 period. The company said half-year earnings per share were not annualised. Revenue declined by Rs 7.48 crore, while profit after tax declined by Rs 1.50 crore.

How did Qualiance’s garment revenue and expenses change?

Qualiance’s revenue from operations declined to Rs 30.97 crore from Rs 38.46 crore a year earlier, and the company identifies manufacturing of garments as its only reportable business segment. As a result, the filing does not provide separate product, customer or geographic revenue data to explain the movement. Revenue was also below Rs 38.42 crore in the half year ended March 31, 2026.

Other income declined to Rs 1.30 crore from Rs 1.87 crore in the September 2025 half year. Total income therefore fell to Rs 32.27 crore from Rs 40.34 crore. Against the immediately preceding half year ended March 31, 2026, total income of Rs 32.27 crore was lower than Rs 40.56 crore.

Total expenses decreased to Rs 27.23 crore from Rs 33.12 crore in the corresponding 2025 period. Cost of materials consumed rose to Rs 13.32 crore from Rs 11.71 crore, while employee-benefit expense fell to Rs 6.09 crore from Rs 8.76 crore. Finance costs declined to Rs 99.93 lakh from Rs 1.63 crore.

Changes in inventories of finished goods, work-in-progress and stock-in-trade resulted in an expense of Rs 1.86 crore, compared with Rs 5.63 crore in the prior-year half year. Other expenses declined to Rs 4.42 crore from Rs 4.83 crore, while depreciation and amortisation was Rs 52.49 lakh against Rs 54.02 lakh. Total expenses fell by Rs 5.89 crore, less than the Rs 8.06 crore decline in total income.

What did Qualiance’s balance sheet and cash flow show?

Qualiance’s balance-sheet total was Rs 99.50 crore at September 30, 2026, compared with Rs 68.98 crore at March 31, 2026. Shareholders’ funds increased to Rs 77.27 crore from Rs 34.65 crore. The September 2026 figure comprised share capital of Rs 13.45 crore and surplus of Rs 63.82 crore.

Cash and bank balances rose to Rs 37.89 crore at September 30 from Rs 78.07 lakh at March 31. The cash-flow statement recorded Rs 45.11 crore of proceeds from a share issue and Rs 5.90 crore of share-issue expenses during the period. It reported net cash flow from financing activities of Rs 37.11 crore.

Net cash flow from operating activities was Rs 8.91 crore for the period ended September 30, 2026, compared with Rs 7.89 crore for the year ended March 31, 2026, as presented in the filing. Trade receivables decreased by Rs 3.40 crore and inventories decreased by Rs 3.01 crore in the September half year. Purchases of property, plant and equipment were Rs 2.43 crore.

What review and governance actions accompanied Qualiance’s results?

Qualiance’s standalone September 2026 results received an unmodified limited-review report from statutory auditor R K Jagetiya & Co. The Audit Committee reviewed the results and the board approved them on October 30, 2026. The auditor said nothing had come to its attention suggesting that the financial statement did not make the required disclosures or contained a material misstatement.

Qualiance prepared the statements under Accounting Standards notified under the Companies Act, 2013, rather than Indian Accounting Standards. The company said its listing on the National Stock Exchange of India SME platform exempted it from compulsory adoption of Indian Accounting Standards. It also reported having no subsidiary, associate or joint venture, making consolidated financial results inapplicable.

The board appointed Siddharth Gajra as Company Secretary and Compliance Officer, effective November 1, 2026. Separately, it appointed Tushar Shridharani as Secretarial Auditor for five consecutive financial years from 2026-27 through 2030-31. Both appointments were approved at the board meeting on October 30, 2026.

Qualiance said it had regrouped, rearranged or reclassified previous-period figures where necessary to conform with the current-period classification. The September 2026 figures are standalone and unaudited, while the statutory auditor’s report dated October 30, 2026 was a limited review rather than an audit opinion.

Conclusion

Qualiance remained profitable in the half year ended September 30, 2026, but its Rs 3.73 crore profit after tax fell more sharply than revenue as garment-manufacturing revenue declined to Rs 30.97 crore. Lower employee-benefit and finance costs reduced expenses, but did not fully offset lower revenue and other income, while tax expense rose to Rs 1.30 crore.

The next disclosed event is Siddharth Gajra taking office as Company Secretary and Compliance Officer on November 1, 2026. Subsequent results will show whether Qualiance’s single garment-manufacturing segment reverses the September-half revenue decline and how its Rs 37.89 crore cash balance, share capital and borrowings develop after the reported share issue.