Relicab Cable writes off Rs 42.28 lakh inventory after theft

Relicab Cable Manufacturing Limited recorded a Rs 42.28 lakh exceptional loss for stolen inventory in the quarter and half year ended September 30, 2026, after reducing its carrying value to nil. Relicab Cable filed a First Information Report with police and lodged an insurance claim, but both matters remained pending when the auditor reported on November 13, 2026.

What did Relicab Cable disclose about the inventory theft?

Relicab Cable disclosed that it identified inventory theft aggregating Rs 42.28 lakh during the quarter and half year ended September 30, 2026. The company wrote down the carrying value of the affected inventory to nil and recognised the loss as an exceptional item in its statement of profit and loss.

The filing does not identify the category of stolen stock, its location, the date of the theft or the quantity involved. It does show that the entire Rs 42.28 lakh carrying value was charged in the September 2026 quarter rather than deferred until the outcome of recovery action or insurance settlement.

Jain Jagawat Kamdar & Co highlighted the matter in an emphasis-of-matter paragraph in its limited review report dated November 13, 2026. The auditor referred to the Rs 42.28 lakh inventory loss, the related police complaint and the pending insurance claim, while stating that its review conclusion was not modified in respect of the matter.

The exceptional-item presentation separates the theft charge from Relicab Cable’s regular material, employee, finance and other expenses. For the quarter ended September 30, 2026, the company reported total expenses of Rs 25.39 crore before the separate Rs 42.28 lakh exceptional loss.

How did the theft charge affect Relicab Cable's quarterly profit?

Relicab Cable reported profit before exceptional items and tax of Rs 1.07 crore for the quarter ended September 30, 2026, which fell to profit before tax of Rs 64.64 lakh after the Rs 42.28 lakh theft-related charge. The difference between those two reported measures equals the exceptional item booked during the quarter.

Profit after tax was Rs 36.68 lakh in the September 2026 quarter, compared with Rs 42.29 lakh in the preceding quarter ended June 30, 2026. The latest quarterly profit after tax was above Rs 29.80 lakh reported in the quarter ended September 30, 2025, despite the separately disclosed theft loss.

Relicab Cable recorded current tax expense of Rs 27.98 lakh and deferred tax credit of Rs 0.22 lakh for the September 2026 quarter. These tax entries followed the Rs 64.64 lakh profit-before-tax figure, while the financial-results statement reported no extraordinary item for the period.

For the half year ended September 30, 2026, profit before tax was Rs 1.20 crore, compared with Rs 1.08 crore in the corresponding half year of 2025. However, profit after tax was Rs 78.97 lakh, below Rs 84.08 lakh a year earlier, and the entire Rs 42.28 lakh exceptional item was recognised in the latest half year.

What recovery action has Relicab Cable taken?

Relicab Cable said it initiated legal and recovery actions by filing a First Information Report with police authorities and lodging a claim with its insurance company. The company did not disclose the claim amount, the name of the insurer, the expected settlement date or any amount recovered by September 30, 2026.

The auditor’s November 13, 2026 report said the police complaint and insurance claim were pending settlement. That status means the September 2026 financial results include the full Rs 42.28 lakh inventory write-down, without a disclosed insurance settlement offsetting the loss in the reported period.

The company reported other income of Rs 29.53 lakh in the September 2026 quarter, against Rs 16.52 lakh in the June 2026 quarter and Rs 19.67 lakh in the September 2025 quarter. The filing does not identify any portion of this other income as insurance proceeds relating to the inventory theft.

The disclosure also does not state the insurance policy limit, deductible or management’s estimate of the amount that may be recoverable. Any later recovery would therefore depend on the unresolved police process and the insurer’s claim assessment, neither of which had a reported conclusion as of November 13, 2026.

What do Relicab Cable's September results show beyond the theft?

Relicab Cable reported revenue from operations of Rs 26.16 crore for the quarter ended September 30, 2026, compared with Rs 17.19 crore in the June 2026 quarter and Rs 13.65 crore in the September 2025 quarter. Total revenue, including Rs 29.53 lakh of other income, was Rs 26.45 crore in the latest quarter.

Cost of materials consumed was Rs 22.31 crore in the September 2026 quarter, making it the largest listed expense. Employee-benefit expense was Rs 84.90 lakh, finance cost was Rs 73.90 lakh and depreciation and amortisation expense was Rs 20.68 lakh, before the exceptional item reduced profit before tax to Rs 64.64 lakh.

Inventories stood at Rs 19.19 crore on September 30, 2026, compared with Rs 19.26 crore on March 31, 2026. The Rs 7.34 lakh decrease in the reported inventory balance cannot be attributed solely to the theft because the filing also reports production, sales and other inventory movements during the half year.

Trade receivables increased to Rs 20.40 crore on September 30, 2026 from Rs 17.41 crore on March 31, 2026. Cash and cash equivalents were Rs 3.38 lakh, while bank balances other than cash and cash equivalents were Rs 3.30 crore at the September reporting date.

How did cash flow and borrowings change in the half year?

Relicab Cable used Rs 91.39 lakh in operating activities during the half year ended September 30, 2026, compared with Rs 1.06 crore generated from operating activities in the corresponding 2025 half year. Cash generated from operations was negative Rs 78.98 lakh before direct taxes paid of Rs 12.40 lakh in the latest half year.

The company reported a Rs 3.00 crore increase in trade and other receivables as a working-capital use during the latest half year, compared with an increase of Rs 5.13 crore in the prior-year period. Inventory movement contributed Rs 7.34 lakh during the latest half year, whereas inventories used Rs 90.19 lakh in the corresponding 2025 period.

Net cash used in investing activities was Rs 1.81 crore in the half year ended September 30, 2026, including Rs 1.91 crore spent on fixed assets. Net cash from financing activities was Rs 2.50 crore, reflecting net loans borrowed of Rs 4.01 crore and interest paid of Rs 1.51 crore.

Long-term borrowings were Rs 18.78 crore at September 30, 2026, up from Rs 14.63 crore at March 31, 2026. The cash-flow statement reported cash and bank balances of Rs 3.34 crore at the September half-year close, compared with Rs 3.56 crore at the beginning of the period.

Conclusion

The September 2026 results record Relicab Cable’s Rs 42.28 lakh inventory theft as a full exceptional loss before the outcome of its recovery process. The charge reduced quarterly profit before tax from Rs 1.07 crore before exceptional items to Rs 64.64 lakh, while revenue from operations increased to Rs 26.16 crore from Rs 13.65 crore a year earlier.

The next disclosed matter to watch is settlement of the First Information Report and insurance claim, both pending in the auditor’s November 13, 2026 report. Relicab Cable has not disclosed a claim value, recovery target or settlement schedule, leaving any potential recovery unresolved in the reported financial statements.