Resgen revenue rises 10% as September-half PAT gains 9%

Resgen Limited reported consolidated revenue from operations of Rs 41.77 crore for the six months ended 30 September 2026, up 10% from Rs 37.87 crore a year earlier, while profit after tax from continuing operations increased 9% to Rs 4.39 crore. Resgen’s board approved the unaudited results on 14 November 2026.

How did Resgen’s September-half revenue and profit change?

Resgen’s revenue from operations rose by Rs 3.90 crore year on year to Rs 41.77 crore in the six months ended 30 September 2026, compared with Rs 37.87 crore in the corresponding six months of 2025. Total income from operations was also Rs 41.77 crore, as other income was nil in the latest period, versus Rs 37.87 crore a year earlier, which included Rs 0.04 lakh of other income.

Profit before tax increased to Rs 5.97 crore from Rs 5.19 crore, a rise of 15%, but profit after tax from continuing operations increased by a smaller 9% to Rs 4.39 crore from Rs 4.03 crore. The difference reflects tax expense of Rs 1.58 crore in the latest half, including Rs 21.13 lakh of earlier tax, compared with Rs 1.15 crore a year earlier after a deferred-tax credit of Rs 28.88 lakh.

Resgen reported total comprehensive income of Rs 4.82 crore, compared with Rs 4.39 crore of profit after tax from continuing operations, because its share of profit from an associate was Rs 0.43 crore in the latest half. There was no associate-profit contribution in the corresponding 2025 period. Basic and diluted earnings per equity share, not annualised, were Rs 2.30, compared with Rs 1.92 a year earlier.

Which costs explain the gap between Resgen’s revenue and profit growth?

Resgen’s total expenses rose to Rs 35.80 crore from Rs 32.69 crore, an increase of 10% that broadly matched the revenue increase. Cost of materials consumed was the largest expense and rose 10% to Rs 34.29 crore from Rs 31.14 crore, accounting for most of the Rs 3.11 crore increase in total expenses.

Employee-benefit expense increased to Rs 49.92 lakh from Rs 35.24 lakh, while other expenses declined to Rs 1.07 crore from Rs 1.21 crore. Depreciation and amortisation fell to Rs 1.12 crore from Rs 1.40 crore, and finance costs declined to nil from Rs 20.03 lakh. Changes in inventories reduced expenses by Rs 1.18 crore, compared with a Rs 1.62 crore reduction a year earlier, meaning inventory movement provided a smaller offset than in the prior-year half.

The comparison with the immediately preceding six months ended 31 March 2026 was different. Revenue increased 26% from Rs 33.20 crore, while profit before tax declined from Rs 6.97 crore to Rs 5.97 crore. The March-half figure included Rs 1.64 crore of other income, whereas Resgen recorded no other income in the September half; excluding that item, the September-half profit before tax was higher.

What did the associate contribute to Resgen’s consolidated result?

Resgen recognised Rs 43.08 lakh as its share of profit from associate Harekrishna Rubber Industries Limited for the six months ended 30 September 2026. This lifted total comprehensive income to Rs 4.82 crore, compared with Rs 4.39 crore of profit after tax from continuing operations before the associate contribution.

The limited-review report identifies Harekrishna Rubber Industries as Resgen’s Indian associate, with a 23.40% holding. Its management-prepared interim financial information for 1 April 2026 to 30 September 2026 showed total revenue of Rs 13.43 crore, net profit after tax of Rs 1.84 crore and total assets of Rs 42.87 crore.

Jay Gupta & Associates said on 14 November 2026 that it had not reviewed the associate’s interim financial information and that its conclusion on disclosures relating to that entity was based on management-furnished information and the procedures described in its report. The auditor did not modify its conclusion on this matter, while also stating that the consolidated financial statements received a limited review rather than an audit.

What changed in Resgen’s balance sheet and cash flow?

Resgen’s total assets were Rs 82.16 crore at 30 September 2026, compared with Rs 75.12 crore at 31 March 2026. Trade receivables increased to Rs 32.55 crore from Rs 25.09 crore, while inventories edged up to Rs 24.43 crore from Rs 24.09 crore. Cash and cash equivalents declined to Rs 2.00 crore from Rs 2.14 crore over the same period.

Shareholders’ funds rose to Rs 72.61 crore from Rs 67.79 crore, reflecting reserves and surplus of Rs 51.63 crore compared with Rs 46.81 crore at the March year-end. Short-term borrowings fell to Rs 2.16 lakh from Rs 1.44 crore. Current liabilities, however, increased to Rs 9.55 crore from Rs 7.33 crore, including other current liabilities of Rs 1.34 crore versus Rs 23.36 lakh.

Cash generated from operating activities was Rs 1.89 crore in the September half. Operating profit before working-capital changes was Rs 7.09 crore, but a Rs 7.46 crore increase in trade receivables and a Rs 33.36 lakh increase in inventories contributed to Rs 5.19 crore of net working-capital outflows. Resgen spent Rs 92.08 lakh on plant and equipment and repaid Rs 1.42 crore of short-term borrowings, producing a Rs 14.23 lakh decrease in cash and cash equivalents.

Conclusion

Resgen’s six-month figures show that revenue increased 10% and profit after tax from continuing operations increased 9%, with the higher tax charge narrowing the conversion of a 15% rise in profit before tax. The Rs 43.08 lakh associate contribution increased total comprehensive income to Rs 4.82 crore, while materials remained the main cost line at Rs 34.29 crore.

The next disclosures will show whether the Rs 32.55 crore receivables balance converts into operating cash after the Rs 7.46 crore half-year working-capital outflow. They will also indicate how inventories develop from Rs 24.43 crore and whether Harekrishna Rubber Industries continues to contribute to Resgen’s consolidated income.