Rodium Realty posts Q2 loss as inventory expense increases

Rodium Realty Limited reported a consolidated loss of Rs 30.51 lakh for the quarter ended 30 September 2026, compared with a Rs 2.20 crore profit a year earlier, as a Rs 6.72 crore expense from changes in inventories outweighed 48% revenue growth to Rs 21.34 crore.

Why did Rodium Realty report a Q2 loss despite higher revenue?

Rodium Realty moved to a Rs 30.51 lakh consolidated loss in the quarter ended 30 September 2026 because total expenses of Rs 21.85 crore exceeded total income of Rs 21.68 crore. In the corresponding quarter ended 30 September 2025, total income was Rs 14.71 crore while expenses were Rs 11.42 crore, producing profit before tax of Rs 3.30 crore and profit after tax of Rs 2.20 crore.

The principal year-on-year movement was in changes in inventories of finished goods, stock-in-trade and work-in-progress, which was an expense of Rs 6.72 crore in the September 2026 quarter against income of Rs 6.33 crore a year earlier. This shift increased the reported cost base even as cost of construction and development declined by Rs 2.76 crore to Rs 13.17 crore.

Revenue from operations rose to Rs 21.34 crore from Rs 14.38 crore, while other income increased to Rs 34.13 lakh from Rs 33.23 lakh. The increase in operating revenue was therefore not enough to offset the inventory movement and the group’s other expenses during the quarter.

Which costs changed most in Rodium Realty's September quarter?

Rodium Realty's inventory-change line moved by Rs 13.04 crore year on year, from Rs 6.33 crore of income in the September 2025 quarter to Rs 6.72 crore of expense in the September 2026 quarter. The financial statement does not separately explain the operational events behind this movement, but identifies finished goods, stock-in-trade and work-in-progress as the relevant category.

Cost of construction and development fell 17% to Rs 13.17 crore from Rs 15.93 crore. Employee benefits expense increased to Rs 43.88 lakh from Rs 16.97 lakh, while depreciation and amortisation increased to Rs 13.36 lakh from Rs 8.26 lakh. Other expenses were Rs 99.53 lakh, compared with Rs 1.00 crore a year earlier.

Finance costs declined to Rs 39.84 lakh from Rs 56.07 lakh in the year-earlier quarter. However, the pre-tax result was a Rs 17.26 lakh loss versus a Rs 3.30 crore profit; current tax of Rs 15.13 lakh, a deferred-tax credit of Rs 3.51 lakh and Rs 1.63 lakh of earlier-year tax adjustments resulted in the Rs 30.51 lakh net loss.

How did Rodium Realty perform in the first half of FY27?

Rodium Realty recorded a consolidated loss of Rs 34.05 lakh for the half year ended 30 September 2026, against a Rs 4.48 crore profit in the half year ended 30 September 2025. First-half revenue from operations rose to Rs 35.92 crore from Rs 28.90 crore, but total expenses increased to Rs 36.48 crore from Rs 22.90 crore.

The inventory category was a Rs 9.65 crore expense in the first half of FY27, compared with Rs 7.28 crore of income in the preceding-year half. Construction and development cost declined to Rs 22.32 crore from Rs 26.29 crore, but that reduction did not counter the inventory movement. Profit before tax consequently fell to Rs 17.79 lakh from Rs 6.73 crore.

The September-quarter result also weakened sequentially. Revenue rose to Rs 21.34 crore from Rs 14.58 crore in the quarter ended 30 June 2026, but the group’s loss widened from Rs 3.55 lakh to Rs 30.51 lakh. Changes in inventories increased to Rs 6.72 crore from Rs 2.93 crore over the two quarters.

What do Rodium Realty's balance sheet and cash flows show?

Rodium Realty reported total assets of Rs 190.52 crore at 30 September 2026, up from Rs 179.49 crore at 31 March 2026. Trade receivables increased to Rs 62.13 crore from Rs 39.89 crore, while inventories declined to Rs 55.35 crore from Rs 66.40 crore over the same period.

Total equity was Rs 24.57 crore at 30 September 2026, compared with Rs 25.01 crore at the March year-end. Non-current borrowings declined to Rs 38.76 crore from Rs 46.37 crore, while current borrowings increased to Rs 61.22 crore from Rs 59.84 crore. Trade payables to creditors other than micro and small enterprises increased to Rs 10.45 crore from Rs 5.50 crore.

For the half year, net cash from operating activities was Rs 7.14 crore, reversing Rs 9.77 crore used in operations a year earlier. The cash-flow statement shows a Rs 22.24 crore increase in trade receivables as a working-capital outflow, partly offset by a Rs 11.05 crore inventory reduction and a Rs 14.45 crore increase in other liabilities.

Rodium Realty ended 30 September with cash and cash equivalents of Rs 4.10 crore and current investments of Rs 4.21 crore, totalling Rs 8.30 crore in the cash-flow statement. The corresponding total at 30 September 2025 was Rs 4.74 crore, while the opening balance at 31 March 2026 was Rs 9.51 crore.

What did the review and segment disclosure say?

Rodium Realty's board approved the unaudited consolidated results on 13 November 2026 after Audit Committee review, and the limited-review report said nothing had come to the reviewers’ attention to suggest that the statement contained a material misstatement. The results were prepared under Indian Accounting Standards, or Ind AS, and the company stated that the statutory auditors expressed an unmodified opinion.

The group comprises Rodium Realty and six subsidiaries, including Rodium Housing LLP, 81 Estates LLP, Readystage LLP, Fluid Realty LLP, Xperia Realty LLP and Rodium Digital Inc. Rodium Housing LLP and Fluid Realty LLP together reported Rs 31.67 crore of revenue and Rs 52.58 lakh of profit after tax before consolidation adjustments for the quarter and half year ended 30 September 2026, according to the review report.

Rodium Realty identified construction, development and related activities as one primary operating segment under Ind AS 108. Its basic and diluted loss per share from continuing operations was Rs 0.94 for the September 2026 quarter, compared with earnings per share of Rs 6.79 a year earlier; the stated face value per share is Rs 10.

Conclusion

Rodium Realty's September 2026 quarterly filing shows that higher revenue did not translate into profit because the Rs 6.72 crore inventory-change expense replaced income recorded in the prior-year period. The same movement affected the half-year outcome, with the group reporting a loss despite a Rs 7.02 crore increase in first-half revenue.

The filing gives no revenue or profit guidance, project target or scheduled future event. Subsequent disclosures will show whether the inventory-change line remains an expense after the Rs 55.35 crore inventory balance at 30 September 2026, and whether trade receivables of Rs 62.13 crore convert into cash.