Ridhi Synthetics Limited profit falls 78% as other income declines

Ridhi Synthetics Limited reported a 78% year-on-year fall in profit after tax to Rs 7.01 lakh for the quarter ended September 30, 2026, as revenue from operations stayed at Rs 12.48 lakh and other income declined to Rs 18.57 lakh from Rs 47.43 lakh.

Why did Ridhi Synthetics’ September-quarter profit fall?

Ridhi Synthetics’ September-quarter profit fell because a decline in other income coincided with higher expenses while operating revenue was unchanged. Other income was Rs 18.57 lakh in the quarter ended September 30, 2026, compared with Rs 47.43 lakh in the corresponding 2025 quarter, while revenue from operations was Rs 12.48 lakh in both periods.

Total income consequently fell to Rs 31.05 lakh from Rs 59.91 lakh, while total expenses increased to Rs 21.70 lakh from Rs 18.76 lakh. Profit before tax declined to Rs 9.35 lakh from Rs 41.15 lakh, and the results reported no exceptional items in either September quarter.

Net tax expense was Rs 2.34 lakh in the September 2026 quarter, comprising current tax of Rs 2.47 lakh and a deferred-tax credit of Rs 0.13 lakh. In the year-earlier quarter, current tax was Rs 13.14 lakh and the deferred-tax credit was Rs 3.21 lakh; basic and diluted earnings per share were Rs 0.58, against Rs 2.60, with both quarterly figures marked as not annualised.

How did Ridhi Synthetics perform against the June quarter?

Ridhi Synthetics’ profit after tax declined from Rs 30.06 lakh in the quarter ended June 30, 2026, to Rs 7.01 lakh in the September quarter. Other income fell to Rs 18.57 lakh from Rs 45.41 lakh quarter on quarter, whereas revenue from operations remained Rs 12.48 lakh in both quarters.

Total income decreased to Rs 31.05 lakh from Rs 57.89 lakh, while total expenses rose to Rs 21.70 lakh from Rs 18.00 lakh. Employee-benefit expense eased to Rs 16.41 lakh from Rs 17.76 lakh, but other expenses were Rs 3.51 lakh against Rs 4.48 lakh and depreciation and amortisation stayed at Rs 1.78 lakh.

Profit before tax fell from Rs 39.89 lakh in the June quarter to Rs 9.35 lakh in the September quarter, while current tax decreased from Rs 10.01 lakh to Rs 2.47 lakh. Total comprehensive income was a loss of Rs 2.90 crore in September, compared with a loss of Rs 39.26 lakh in June, because other comprehensive income was negative Rs 2.97 crore.

What do Ridhi Synthetics’ half-year results show?

Ridhi Synthetics reported profit after tax of Rs 37.08 lakh for the six months ended September 30, 2026, compared with Rs 39.78 lakh for the corresponding prior-year half. The Rs 2.70 lakh decrease came despite total income increasing to Rs 88.94 lakh from Rs 86.24 lakh.

Revenue from operations for the first half rose to Rs 24.98 lakh from Rs 24.36 lakh, while other income declined to Rs 53.98 lakh from Rs 61.28 lakh. Total expenses increased to Rs 39.69 lakh from Rs 33.71 lakh, including employee-benefit expenses of Rs 28.47 lakh compared with Rs 23.11 lakh a year earlier.

Profit before tax was Rs 49.25 lakh for the six months, down from Rs 52.53 lakh. Current tax was Rs 12.48 lakh against Rs 13.14 lakh, while the deferred-tax credit was Rs 0.31 lakh against Rs 0.39 lakh; total comprehensive income was a loss of Rs 3.21 crore, versus income of Rs 3.58 crore, reflecting negative other comprehensive income of Rs 3.67 crore.

What changed in Ridhi Synthetics’ balance sheet and cash flow?

Ridhi Synthetics’ total assets were Rs 51.67 crore at September 30, 2026, down from Rs 55.26 crore at March 31, 2026. Non-current investments declined to Rs 36.16 crore from Rs 40.44 crore, while current investments rose to Rs 11.81 crore from Rs 11.08 crore and cash and cash equivalents fell to Rs 1.30 lakh from Rs 2.01 lakh.

Total equity was Rs 48.46 crore at September 30, compared with Rs 51.76 crore at the March year-end. Other equity declined to Rs 47.26 crore from Rs 50.55 crore, share capital remained Rs 1.20 crore, and the company reported no borrowings at either balance-sheet date; current liabilities increased to Rs 45.62 lakh from Rs 12.89 lakh.

Net cash from operating activities was Rs 14.18 lakh in the half year ended September 30, 2026, against net cash used of Rs 17.39 lakh in the prior-year half. Net cash used in investing activities was Rs 14.89 lakh, compared with net cash generated of Rs 15.29 lakh, after investment purchases of Rs 11.15 crore and investment sales of Rs 10.79 crore.

What did the auditor and Ridhi Synthetics disclose with the results?

Ridhi Synthetics’ statutory auditor, A R Sodha & Co., issued an unmodified review conclusion on the unaudited results dated November 13, 2026. The auditor stated that nothing had come to its attention indicating that the September 30, 2026 financial statement failed to make required disclosures or contained a material misstatement.

Ridhi Synthetics said it operates in a single business segment, meaning Indian Accounting Standard 108 operating-segment disclosures were not applicable. The board approved the unaudited quarterly and half-year results on November 13, 2026, at a meeting that began at 3:30 pm and concluded at 4:00 pm.

The filing reported no outstanding default on loans or debt securities, while the disclosure on use of issue proceeds was not applicable. For the first half of fiscal 2026-27, remuneration and expense reimbursements for key managerial personnel totalled Rs 28.27 lakh, compared with Rs 22.86 lakh in the corresponding prior-year half.

Conclusion

Ridhi Synthetics’ September-quarter earnings decline followed a reduction in other income rather than a fall in operating revenue, which remained Rs 12.48 lakh. Other income declined to Rs 18.57 lakh, total expenses increased to Rs 21.70 lakh, and profit after tax fell to Rs 7.01 lakh from Rs 31.22 lakh a year earlier.

What to watch next is whether other income changes from the September-quarter level and whether employee-benefit expenses, which were Rs 28.47 lakh in the first half, continue to rise. The filing discloses no financial target, capital plan or scheduled operational event beyond the Board’s November 13, 2026 approval of the September results.