Rexpro Enterprises Limited H1 revenue falls 44% to Rs 25.14 crore

Rexpro Enterprises Limited reported consolidated revenue from operations of Rs 25.14 crore for the half year ended September 30, 2026, a 44% decline from Rs 45.12 crore a year earlier, while profit from continuing operations fell 49% to Rs 93.98 lakh from Rs 1.86 crore.

How did Rexpro’s H1 revenue and profit change?

Rexpro’s consolidated revenue from operations declined by Rs 19.98 crore year on year to Rs 25.14 crore in the half year ended September 30, 2026. Other income decreased to Rs 1.28 crore from Rs 1.41 crore, bringing total income down to Rs 26.42 crore from Rs 46.53 crore in the half year ended September 30, 2025.

Profit before tax fell to Rs 1.31 crore in H1 2026 from Rs 2.39 crore in H1 2025. The statement recorded current income tax of Rs 52.71 lakh and a deferred-tax credit of Rs 14.28 lakh, resulting in profit after tax before minority interest of Rs 92.83 lakh, compared with Rs 1.75 crore a year earlier.

Rexpro reported profit from continuing operations of Rs 93.98 lakh for H1 2026, against Rs 1.86 crore in H1 2025. Basic and diluted earnings per share were each Rs 0.84, down from Rs 2.19, while the filing identified furniture manufacturing in India as the group’s only business and geographical segment.

What changed in Rexpro’s H1 cost base?

Rexpro’s total expenses decreased by Rs 9.03 crore to Rs 25.11 crore in H1 2026, but this reduction was smaller than the Rs 19.98 crore fall in operating revenue. Cost of materials consumed declined to Rs 12.99 crore from Rs 30.20 crore, while the inventory-change line produced a credit of Rs 3.98 crore compared with a credit of Rs 1.19 crore a year earlier.

Several costs increased despite lower revenue. Direct expenses rose to Rs 8.64 crore from Rs 7.89 crore, employee-benefit expense increased to Rs 3.22 crore from Rs 2.82 crore, and finance cost rose to Rs 70.38 lakh from Rs 38.14 lakh. Depreciation and amortisation reached Rs 1.30 crore from Rs 40.80 lakh, whereas other expenses declined to Rs 2.37 crore from Rs 3.63 crore.

Rexpro’s September 2026 half also had lower revenue than the immediately preceding March 2026 half, when revenue from operations was Rs 28.57 crore. However, profit before tax improved from Rs 50.47 lakh in that March half to Rs 1.31 crore in the September half; the filing describes the March 2026 half-year figures as balancing figures derived from the audited full-year result and management-certified September 2025 half-year figures.

Why did Rexpro report an operating cash outflow?

Rexpro used Rs 2.89 crore in operating activities in H1 2026 despite reporting profit before tax of Rs 1.31 crore. Operating profit before working-capital changes was Rs 2.04 crore after depreciation and amortisation of Rs 1.30 crore, interest income of Rs 1.27 crore and finance costs of Rs 70.38 lakh.

Working-capital movements used Rs 4.66 crore of cash during the September 2026 half. Trade receivables increased by Rs 3.09 crore, inventories increased by Rs 3.61 crore and short-term loans and advances rose by Rs 80.82 lakh, partly offset by a Rs 1.48 crore increase in trade payables and Rs 79.40 lakh from other-liability movements.

Rexpro paid net taxes of Rs 27.24 lakh in H1 2026, after which net operating cash flow was an outflow of Rs 2.89 crore. Investing activities generated Rs 47.62 lakh, including Rs 3.05 crore of net fixed-asset purchases, Rs 1.27 crore of interest income and Rs 2.26 crore from long-term loans and advances.

Financing activities generated Rs 1.94 crore in the half, reflecting a Rs 2.65 crore net increase in borrowings and Rs 70.38 lakh of interest and finance charges. Cash and cash equivalents therefore declined by Rs 47.31 lakh to Rs 24.14 crore at September 30, 2026, from Rs 24.62 crore at March 31, 2026.

What changed in Rexpro’s balance sheet and IPO utilisation?

Rexpro’s total assets and liabilities rose to Rs 102.24 crore at September 30, 2026, from Rs 98.21 crore at March 31, 2026. Inventories increased to Rs 19.00 crore from Rs 15.30 crore and trade receivables rose to Rs 24.53 crore from Rs 21.44 crore, consistent with the operating-cash-flow movements during the half year.

Short-term borrowings increased to Rs 18.48 crore at September 30 from Rs 15.74 crore at March 31, while long-term borrowings decreased to Rs 18.53 lakh from Rs 27.40 lakh. Trade payables other than those owed to micro and small enterprises increased to Rs 13.93 crore from Rs 12.49 crore, and reserves and surplus rose to Rs 54.70 crore from Rs 52.79 crore.

Rexpro said its financial-year 2024-25 fresh issue generated gross initial public offering proceeds of Rs 47.13 crore. At September 30, 2026, Rs 29.80 crore had been utilised and Rs 17.33 crore remained pending utilisation, including Rs 13.81 crore for equipment purchases and factory renovation and Rs 3.52 crore for pursuing inorganic growth.

The consolidated limited-review report dated November 13, 2026 covered Rexpro and its subsidiaries, Progulf Warehousing Solutions Private Limited and Rex Lusso Private Limited. The auditor stated that nothing had come to its attention to indicate that the unaudited consolidated statement did not make the disclosures required by the listing regulations or contained a material misstatement.

Conclusion

Rexpro’s H1 2026 results show a Rs 19.98 crore year-on-year reduction in revenue from operations and a Rs 91.87 lakh decline in profit from continuing operations. The reduction in material consumption to Rs 12.99 crore was accompanied by higher direct expenses, employee costs, finance costs and depreciation in several reported lines, while operating activities used Rs 2.89 crore of cash.

The next disclosed matters to watch are use of the Rs 17.33 crore of pending IPO proceeds, particularly Rs 13.81 crore allocated to equipment and factory renovation and Rs 3.52 crore for inorganic growth. Rexpro also said balances under trade payables, loans and advances, and other current liabilities remain subject to confirmation and reconciliation, with any consequent adjustment to be accounted for when that process is completed.