Raghunath International Limited profit falls 86% on revenue slump

Raghunath International Limited reported standalone profit after tax of Rs 9.26 lakh for the quarter ended September 30, 2026, down 86% from Rs 68.09 lakh a year earlier, as real-estate development revenue fell 93% to Rs 6.43 lakh. Total income declined to Rs 28.71 lakh from Rs 1.1126 crore.

Why did Raghunath International’s September-quarter profit fall?

Raghunath International’s profit fell principally because real-estate development generated far less revenue and segment profit than in the September 2025 quarter. Real-estate development revenue was Rs 6.43 lakh in the quarter ended September 30, 2026, compared with Rs 90.71 lakh a year earlier. The segment’s profit before tax declined to Rs 6.43 lakh from Rs 87.07 lakh over the same periods.

The reduction in real-estate development income accounted for most of the change in total income. Raghunath International recorded total income of Rs 28.71 lakh in the latest quarter, against Rs 1.1126 crore in the prior-year quarter. Other unallocable income increased to Rs 22.28 lakh from Rs 20.55 lakh, but the Rs 1.73 lakh rise did not offset the Rs 84.28 lakh reduction in real-estate development revenue.

Total expenses declined to Rs 16.57 lakh from Rs 20.67 lakh, partly moderating the income decline. Employee benefits expense was Rs 8.05 lakh, compared with Rs 8.36 lakh a year earlier, while other expenses were Rs 8.49 lakh against Rs 8.65 lakh. Profit before tax consequently fell to Rs 12.15 lakh from Rs 90.58 lakh, and profit after tax declined by Rs 58.83 lakh to Rs 9.26 lakh.

The September-quarter earnings per share, or EPS, was Rs 0.19 on both a basic and diluted basis, compared with Rs 1.36 in the corresponding quarter of 2025. The results were unaudited and were reviewed by the audit committee before the board approved them on November 5, 2026.

How did Raghunath International perform against the June quarter?

Raghunath International’s September-quarter profit after tax was lower than the June-quarter figure despite nearly unchanged total income. Profit after tax was Rs 9.26 lakh in the three months ended September 30, 2026, versus Rs 12.18 lakh in the three months ended June 30, 2026. Total income was Rs 28.71 lakh, marginally above Rs 28.62 lakh in the preceding quarter.

The sequential decline followed an increase in expenses to Rs 16.57 lakh from Rs 13.26 lakh. Other expenses rose to Rs 8.49 lakh from Rs 5.31 lakh, while employee benefits expense increased to Rs 8.05 lakh from Rs 7.91 lakh. Profit before tax therefore decreased to Rs 12.15 lakh from Rs 15.36 lakh.

Real-estate development revenue was effectively unchanged sequentially at Rs 6.43 lakh in the September quarter and Rs 6.44 lakh in the June quarter. Other unallocable income rose slightly to Rs 22.28 lakh from Rs 22.18 lakh, while the related segment result declined to Rs 5.71 lakh from Rs 8.92 lakh. EPS decreased to Rs 0.19 from Rs 0.24 in June 2026.

What do Raghunath International’s first-half results show?

Raghunath International reported first-half profit after tax of Rs 21.44 lakh for the six months ended September 30, 2026, compared with Rs 77.83 lakh in the corresponding period of 2025. Real-estate development revenue declined to Rs 12.87 lakh from Rs 96.50 lakh, extending the lower activity reported in both the June and September quarters.

Total income for the first half was Rs 57.33 lakh, against Rs 1.3671 crore a year earlier. Total expenses declined to Rs 29.83 lakh from Rs 33.75 lakh, while profit before tax decreased to Rs 27.51 lakh from Rs 1.0295 crore. The lower expenses did not match the decline in income.

Other unallocable income rose to Rs 44.46 lakh in the first half from Rs 40.21 lakh a year earlier, and its segment result increased to Rs 14.63 lakh from Rs 10.10 lakh. Real-estate development contributed Rs 12.87 lakh of the Rs 57.33 lakh total income. The filing reported no revenue in the pan masala or trading and agency business segments for the six-month period.

What happened to Raghunath International’s cash flow and balance sheet?

Raghunath International reported net cash used in operating activities of Rs 6.16 lakh for the half year ended September 30, 2026. Operating profit before working-capital changes was Rs 27.58 lakh, but the cash-flow statement included a Rs 33.42 lakh movement in trade and other receivables and Rs 6.07 lakh of direct taxes paid.

Cash generated from operations before direct taxes was negative Rs 0.09 lakh. The cash-flow statement reported no cash flow from investing or financing activities, leaving cash and cash equivalents at Rs 16.65 lakh at September 30, 2026, down from Rs 22.81 lakh at the start of the financial year. The standalone balance sheet listed cash and cash equivalents of Rs 16.64 lakh at the reporting date.

Total assets increased to Rs 14.9057 crore at September 30, 2026, from Rs 14.634 crore at March 31, 2026. Other financial assets increased to Rs 11.4517 crore from Rs 11.1399 crore, while trade receivables rose to Rs 30.28 lakh from Rs 28.88 lakh. Equity share capital was unchanged at Rs 5.0002 crore, and other equity increased to Rs 8.0762 crore from Rs 7.8618 crore.

Real-estate development capital employed was Rs 93.11 lakh at September 30, 2026, compared with Rs 92.21 lakh at March 31, 2026. Other unallocable capital employed rose to Rs 12.1454 crore from Rs 11.94 crore. The company reported no pledged or encumbered promoter shares, while promoter-group ownership was 41.30% at September 30, 2026.

What did the limited review report identify?

Raghunath International’s auditor said its review did not identify a matter suggesting that the standalone unaudited results had failed to make the disclosures required under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The auditor conducted a limited review rather than an audit and therefore did not express an audit opinion.

The auditor also noted that the company had recognised non-current equity investments at cost, rather than at fair value through profit and loss or other comprehensive income under Indian Accounting Standard 109, or Ind AS 109. The auditor said the impact of the difference between fair value and cost, including the related deferred tax effect, was not ascertainable from the information available.

Conclusion

Raghunath International’s September-quarter decline was driven by a Rs 84.28 lakh year-on-year reduction in real-estate development revenue, which reduced total income by Rs 82.55 lakh and profit after tax by Rs 58.83 lakh. Lower expenses partly offset that movement, but profit also declined sequentially and first-half operating cash flow was negative Rs 6.16 lakh.

The next reported results will show whether real-estate development revenue, which was Rs 6.43 lakh in both the June and September 2026 quarters, changes from that level. The unresolved matter to monitor is the auditor’s observation on non-current equity investments: the financial effect of measuring them at fair value instead of cost was stated to be unascertainable.