Radhe Developers posts Rs 2.3686 crore first-half loss

Radhe Developers (India) Limited posted a Rs 2.3686 crore loss for the half year ended September 30, 2026, versus a Rs 4.6641 crore profit a year earlier, after revenue from operations declined to Rs 3.06 lakh from Rs 8.6356 crore and total income reached Rs 4.79 lakh.

What did Radhe Developers report for the September 2026 half year?

Radhe Developers reported a Rs 2.3686 crore loss after tax for the half year ended September 30, 2026, compared with a Rs 4.6641 crore profit after tax in the corresponding half year of 2025. Loss before tax was Rs 2.3512 crore, against profit before tax of Rs 5.127 crore a year earlier. The latest period included deferred-tax expense of Rs 1.74 lakh, while the prior period included current tax of Rs 50 lakh and a deferred-tax credit of Rs 3.72 lakh.

The shift followed a large fall in income. Revenue from operations was Rs 3.06 lakh, compared with Rs 8.6356 crore, while total income declined to Rs 4.79 lakh from Rs 8.5486 crore. Total expenses fell to Rs 2.3991 crore from Rs 3.5215 crore, but still exceeded the latest half-year income by Rs 2.3512 crore.

The standalone results were unaudited, reviewed by the audit committee and approved by Radhe Developers’ board on November 6, 2026. Radhe Developers said its operations are within construction, which management considers the sole reportable segment under Indian Accounting Standard 108, or Ind AS 108. It also said consolidated financial statements were not applicable.

Why did Radhe Developers move from profit to loss?

Radhe Developers moved to a loss because total income of Rs 4.79 lakh did not cover total expenses of Rs 2.3991 crore during the September 2026 half year. Revenue from operations fell by Rs 8.605 crore from the corresponding period, a decline substantially larger than the Rs 1.1224 crore reduction in total expenses. The reported result therefore changed from a Rs 5.127 crore pre-tax profit to a Rs 2.3512 crore pre-tax loss.

The composition of expenses also changed. Cost of materials consumed rose to Rs 1.8283 crore from Rs 43.31 lakh, and purchase and project-development expenses rose to Rs 1.579 crore from Rs 1.243 crore. Changes in inventories of finished goods, stock-in-trade and work-in-progress were negative Rs 2.98 crore, compared with negative Rs 51.50 lakh in the prior half year, offsetting some of those costs in the income statement.

Employee-benefit expense was Rs 44.79 lakh, down from Rs 69.27 lakh, while other expenses declined to Rs 75.83 lakh from Rs 1.0302 crore. Finance costs increased to Rs 37.46 lakh from Rs 17.59 lakh and depreciation and amortisation rose to Rs 39.03 lakh from Rs 35.08 lakh. These line-item movements did not offset the decline in operating revenue.

How did Radhe Developers perform in the September 2026 quarter?

Radhe Developers recorded a Rs 1.1699 crore loss for the quarter ended September 30, 2026, against a Rs 78.62 lakh profit in the quarter ended September 30, 2025. Revenue from operations was Rs 3.06 lakh, down from Rs 2.4443 crore, and total income was Rs 3.06 lakh, compared with Rs 2.4973 crore. The quarter’s loss before tax was Rs 1.1641 crore.

September-quarter total expenses were Rs 1.1947 crore, versus Rs 1.725 crore a year earlier. Material costs were Rs 1.514 crore, purchase and project-development expenses were Rs 1.101 crore, and the inventory-change line was negative Rs 1.3567 crore. Employee-benefit expense was Rs 77.70 lakh, finance costs were Rs 18.23 lakh and depreciation was Rs 19.04 lakh.

The immediately preceding June 2026 quarter also reported a loss, of Rs 1.1987 crore. Radhe Developers recorded no revenue from operations in that quarter, total income of Rs 1.73 lakh and total expenses of Rs 1.2044 crore. Basic and diluted earnings per share for the six months ended September 30, 2026 were negative Rs 0.04.

What do Radhe Developers’ cash flow and balance sheet show?

Radhe Developers reported cash used in operating activities of Rs 3.1947 crore for the half year ended September 30, 2026. Its cash-flow statement showed negative cash generated from operations of Rs 3.1947 crore after working-capital movements. Inventory increased by Rs 2.98 crore in the cash-flow calculation, while current assets and short-term loans and advances decreased by Rs 41.48 lakh.

Net cash from financing activities was Rs 3.237 crore, and investing activities generated Rs 7.32 lakh from the sale of fixed assets. The financing section included Rs 2.3394 crore under net proceeds from short-term borrowings, Rs 1.2722 crore under repayment of long-term borrowings and finance cost of Rs 37.46 lakh. Cash and cash equivalents increased by Rs 11.55 lakh to Rs 38.70 lakh at September 30, 2026, from Rs 27.14 lakh at the beginning of the period.

Total assets were Rs 144.0444 crore at September 30, 2026, compared with Rs 141.115 crore at March 31, 2026. Inventories increased to Rs 55.7483 crore from Rs 52.7683 crore, while current borrowings rose to Rs 24.7213 crore from Rs 22.3819 crore. Other equity declined to Rs 12.9301 crore from Rs 15.2987 crore, while equity share capital remained Rs 54.8882 crore.

What did the reviewer say about Radhe Developers’ results?

The reviewer said no provision had been made for gratuity in Radhe Developers’ quarterly results, which was not in accordance with Ind AS 19. S Parth & Co issued the limited review report on November 6, 2026, in connection with the unaudited quarter and half-year results ended September 30, 2026.

Apart from the stated matter, the reviewer said nothing had come to its attention that caused it to believe the statement had failed to disclose required information or contained a material misstatement under the applicable listing requirements. The report explained that a review provides moderate assurance and is more limited than an audit because it relies principally on inquiries and analytical procedures.

The reviewer also stated that it had not reviewed the accompanying financial results and other financial information for the quarter ended September 30, 2026, which were presented solely on information compiled by management and approved by the board. Radhe Developers said corresponding prior-period figures had been restated or regrouped where necessary for comparability.

Conclusion

Radhe Developers’ September 2026 half-year results show a reversal from a Rs 4.6641 crore profit to a Rs 2.3686 crore loss, led by a reduction in revenue from operations to Rs 3.06 lakh. Expenses of Rs 2.3991 crore exceeded total income of Rs 4.79 lakh, while operating activities used Rs 3.1947 crore of cash.

The next disclosure can show whether Radhe Developers generates construction revenue from its Rs 55.7483 crore inventory and how its Rs 24.7213 crore of current borrowings develop. It can also show whether the gratuity provision matter identified by the reviewer under Ind AS 19 has been addressed.