Royal Cushion Vinyl September loss widens to Rs 6.02 crore

Royal Cushion Vinyl Products Limited reported a Rs 6.02 crore loss after tax for the quarter ended September 30, 2026, versus a restated Rs 2.58 crore loss a year earlier, as revenue from operations fell 42.5% to Rs 10.83 crore and total expenses exceeded total income by Rs 6.02 crore.

Why did Royal Cushion Vinyl's September-quarter loss widen?

Royal Cushion Vinyl's loss after tax widened by Rs 3.44 crore year on year to Rs 6.02 crore in the September 2026 quarter. Total income declined to Rs 10.95 crore from Rs 19.75 crore in the restated September 2025 quarter, while total expenses fell by Rs 5.36 crore to Rs 16.97 crore. This left a pre-tax loss of Rs 6.02 crore, against Rs 2.58 crore a year earlier.

Revenue from operations fell to Rs 10.83 crore from Rs 18.84 crore, a decline of 42.5%. Other income also fell to Rs 12.46 lakh from Rs 91.11 lakh, taking the total-income decline to 44.5%. Royal Cushion Vinyl reported no exceptional items in either the September 2026 quarter or the corresponding restated quarter.

The cost base remained above income despite lower spending. Materials consumed were Rs 9.82 crore, employee-benefits expense was Rs 1.68 crore, finance costs were Rs 1.56 crore and other expenses were Rs 3.95 crore. Total expenses also included depreciation and amortisation of Rs 26.68 lakh and a Rs 30.84 lakh reduction from changes in inventories of finished goods, stock in trade and work in progress.

How did Royal Cushion Vinyl perform against the June quarter?

Royal Cushion Vinyl's operating revenue rose sequentially to Rs 10.83 crore in the September 2026 quarter from Rs 8.25 crore in the June 2026 quarter. However, the loss after tax increased to Rs 6.02 crore from Rs 5.13 crore because total expenses increased by Rs 3.46 crore, more than the Rs 2.57 crore increase in total income.

Materials consumed rose by Rs 2.61 crore sequentially to Rs 9.82 crore, while other expenses increased by Rs 60.35 lakh to Rs 3.95 crore. Employee-benefits expense rose by Rs 9.29 lakh to Rs 1.68 crore. Finance costs declined by Rs 15.73 lakh to Rs 1.56 crore, but that reduction did not offset the increase in other costs.

Other income was Rs 12.46 lakh in the September quarter, marginally below Rs 12.96 lakh in the June quarter and below Rs 91.11 lakh a year earlier. The filing states that other income in the current year included no government grant or write-back of unclaimed liabilities, while the previous year included Rs 9.10 crore from those items. That disclosed difference helps explain why total income declined more sharply than operating revenue year on year.

What do Royal Cushion Vinyl's half-year results and balance sheet show?

Royal Cushion Vinyl posted a Rs 11.15 crore loss after tax for the half year ended September 30, 2026, compared with a restated Rs 3.00 crore loss in the prior-year half year. Half-year revenue from operations fell 39.3% to Rs 19.07 crore from Rs 31.44 crore, while total income declined 46.5% to Rs 19.33 crore from Rs 36.13 crore.

Total expenses for the six months fell 22.1% to Rs 30.48 crore from Rs 39.13 crore, which was less than the Rs 16.80 crore fall in total income. Materials consumed fell by Rs 6.20 crore to Rs 17.03 crore, finance costs declined by Rs 49.56 lakh to Rs 3.28 crore, and other expenses decreased by Rs 2.21 crore to Rs 7.29 crore. Basic and diluted loss per equity share was Rs 3.05, compared with Rs 0.82 in the restated prior-year half.

Total equity was negative Rs 22.60 crore at September 30, 2026, compared with negative Rs 11.44 crore at March 31, 2026. Other equity was negative Rs 63.30 crore, against negative Rs 52.14 crore at the financial year-end. Total liabilities increased to Rs 100.63 crore from Rs 89.57 crore, including Rs 48.85 crore of non-current liabilities and Rs 51.78 crore of current liabilities.

Non-current borrowings declined to Rs 28.82 crore from Rs 30.92 crore, while current borrowings increased to Rs 20.28 crore from Rs 20.18 crore. Non-current liabilities included Rs 10.00 crore of deposits and advances at September 30, against nil at March 31. Trade payables due to micro, small and medium enterprises rose to Rs 13.18 crore from Rs 11.68 crore.

How do the amalgamations and going-concern disclosures affect comparisons?

Royal Cushion Vinyl restated comparative periods after Royal Spinwell and Developers Private Limited amalgamated with it, with the scheme becoming effective on August 30, 2026. The National Company Law Tribunal, Mumbai Bench, sanctioned the scheme on July 28, 2026, and the appointed date was October 1, 2021. Royal Cushion Vinyl applied the pooling-of-interests method under Indian Accounting Standard 103 for common-control business combinations.

The restatement changed the June 2026 loss after tax to Rs 5.13 crore from Rs 5.13 crore reported previously, and the September 2025 loss after tax to Rs 2.58 crore from Rs 2.58 crore. It also changed other equity at March 31, 2026 to negative Rs 52.14 crore from negative Rs 73.14 crore. The reported September-quarter comparisons therefore use restated figures rather than the originally published amounts.

Management said the going-concern basis was appropriate because of a high-value order book, expected conversion of unbilled revenue into billed revenue and realisation, and stepped-up recovery of billed dues. The filing does not quantify the order book, unbilled revenue or expected collections. It also states that promoters have provided a comfort letter for continued support when required.

Royal Cushion Vinyl has a separate proposed amalgamation with Natroyal Industries Private Limited, with an appointed date of April 1, 2024. The company said it received BSE Limited's no-objection letter and filed an application with the National Company Law Tribunal. The next hearing is scheduled for January 6, 2027, and the scheme remains subject to shareholder, creditor, regulatory and other stated approvals.

Conclusion

Royal Cushion Vinyl's September-quarter revenue recovered from the June quarter but remained 42.5% below the restated year-earlier level. The decline in income was larger than the reduction in costs, producing a Rs 6.02 crore quarterly loss and a Rs 11.15 crore first-half loss. At September 30, total equity was negative Rs 22.60 crore while total liabilities were Rs 100.63 crore.

The next disclosed event is the January 6, 2027 National Company Law Tribunal hearing on the Natroyal Industries Private Limited scheme. Management's stated operating watchpoints are execution of its order book, conversion of unbilled revenue into billed revenue and realisation, and collection of billed dues; the filing does not provide targets or timelines for these measures.