Race Eco Chain records Rs 24.60 crore OCI revaluation gain

Race Eco Chain Limited recorded a Rs 24.60 crore net other comprehensive income (OCI) gain in the quarter ended September 30, 2026 after selling 2,10,000 Prime Industries Limited equity shares, causing Prime Industries to cease as an associate and requiring the remaining investment to be measured at fair value.

What happened to Race Eco Chain’s Prime Industries investment?

Race Eco Chain sold 2,10,000 Prime Industries equity shares during the half year ended September 30, 2026, after which the investee ceased to be an associate. The consolidated limited-review report dates the cessation of associate status to July 1, 2026, while the standalone results note describes the sale as occurring during the reported half year.

Race Eco Chain had previously accounted for its Prime Industries holding as an investment in an associate using the equity method. Following the change in status, it reclassified the holding as other financial investments and began measuring it at fair value under Indian Accounting Standard 109, or Ind AS 109, rather than using equity-method accounting.

The filing does not disclose the sale consideration, the percentage holding before or after the sale, or the number of Prime Industries shares retained. It does state that the difference arising from the required remeasurement was recognised in OCI, separating its accounting impact from standalone profit for the September 2026 quarter.

How much OCI did the Prime Industries remeasurement create?

Race Eco Chain reported a Rs 32.88 crore net gain on fair value of investments in OCI for the quarter ended September 30, 2026. A related income-tax charge of Rs 8.27 crore reduced the resulting OCI amount to a Rs 24.60 crore gain for the quarter.

The standalone cash-flow statement also identifies a Rs 32.88 crore profit on revaluation of investment for the half year ended September 30, 2026. That amount aligns with the pre-tax fair-value gain in the standalone statement of profit and loss and OCI, while the results statement presents the related tax effect separately.

The OCI movement was concentrated in the September quarter. Race Eco Chain had reported an OCI loss of Rs 81.20 lakh in the quarter ended June 30, 2026, whereas the corresponding quarter ended September 30, 2025 had an OCI loss of Rs 3.41 crore.

For the half year ended September 30, 2026, Race Eco Chain reported OCI of Rs 23.79 crore, compared with an OCI loss of Rs 1.87 crore in the corresponding prior-year half year. The difference reflects the September-quarter remeasurement gain and its tax charge, rather than a comparable movement in reported profit.

Did the revaluation increase Race Eco Chain’s reported profit?

No. Race Eco Chain recorded the Prime Industries remeasurement in OCI rather than profit or loss, and standalone profit for the quarter ended September 30, 2026 was Rs 70.83 lakh, down from Rs 1.15 crore a year earlier.

Total comprehensive income was Rs 25.31 crore in the September 2026 quarter, compared with a total comprehensive loss of Rs 2.26 crore in the quarter ended September 30, 2025. The difference between the Rs 70.83 lakh profit figure and the Rs 25.31 crore comprehensive-income figure shows the effect of the OCI classification.

For the half year ended September 30, 2026, Race Eco Chain’s standalone profit was Rs 1.32 crore, compared with Rs 1.26 crore in the corresponding prior-year period. Total comprehensive income, however, was Rs 25.11 crore, against a total comprehensive loss of Rs 61 lakh in the earlier half year.

Profit before tax rose to Rs 94.65 lakh in the September 2026 quarter from Rs 89.76 lakh a year earlier, despite finance costs increasing to Rs 2.20 crore from Rs 1.87 crore. The fair-value remeasurement therefore changed comprehensive income much more substantially than it changed the company’s reported quarterly profit.

How did Race Eco Chain’s operating business perform?

Race Eco Chain’s revenue from operations declined to Rs 87.97 crore in the quarter ended September 30, 2026 from Rs 96.11 crore in the corresponding 2025 quarter. For the half year, revenue fell to Rs 181.14 crore from Rs 194.92 crore, a reduction of Rs 13.78 crore.

The Recycle Division remained the largest revenue segment, contributing Rs 82.76 crore in the September 2026 quarter versus Rs 92.03 crore a year earlier. Its segment result before interest and tax increased to Rs 2.42 crore from Rs 2.31 crore over the same comparison.

The Biomass Division reported September-quarter revenue of Rs 4.49 crore, up from Rs 1.25 crore in the prior-year quarter. Its segment result increased to Rs 14.82 lakh from Rs 4.33 lakh, while half-year Biomass revenue rose to Rs 10.39 crore from Rs 1.58 crore.

The Restore Division moved in the opposite direction, with quarterly revenue falling to Rs 71.34 lakh from Rs 2.83 crore. It reported a segment loss before interest and tax of Rs 26.70 lakh for the September 2026 quarter, compared with a segment profit of Rs 4.06 lakh a year earlier.

What changed on Race Eco Chain’s balance sheet?

Race Eco Chain’s standalone investments were Rs 63.03 crore at September 30, 2026, compared with Rs 21.52 crore at March 31, 2026. The filing identifies the Prime Industries reclassification and fair-value remeasurement, but does not provide a separate reconciliation between the investment balance and purchases, sales or valuation movements.

Total assets rose to Rs 224.92 crore at September 30, 2026 from Rs 172.98 crore at March 31, 2026. Other equity increased to Rs 78.32 crore from Rs 52.01 crore, while total shareholders’ funds increased to Rs 95.58 crore from Rs 69.27 crore.

Short-term borrowings increased to Rs 92.60 crore at September 30, 2026 from Rs 82.22 crore at March 31, 2026. Cash and cash equivalents declined to Rs 3.56 crore from Rs 8.17 crore over the same period, according to the standalone balance sheet.

The balance-sheet changes occurred alongside a Rs 25.11 crore total comprehensive income figure for the half year ended September 30, 2026. The filing does not include a standalone statement of changes in equity, so it does not separately allocate the rise in other equity to the Prime Industries remeasurement or other movements.

Conclusion

Race Eco Chain’s sale of 2,10,000 Prime Industries shares ended associate accounting from July 1, 2026 and moved the investment to fair-value measurement. The resulting Rs 24.60 crore net OCI gain lifted September-quarter total comprehensive income to Rs 25.31 crore, while standalone profit was Rs 70.83 lakh and revenue was Rs 87.97 crore.

The filing discloses no target, plan or scheduled transaction related to the remaining Prime Industries investment. The unresolved items to watch in subsequent disclosures are the retained stake, sale consideration, fair-value basis and the movement in the Rs 63.03 crore standalone investments balance reported at September 30, 2026.