RRIL subsidiaries generated Rs 10.53 crore H1 profit

RRIL Limited’s two subsidiaries reported combined profit after tax of Rs 10.53 crore for the half year ended September 30, 2026, equal to about 95.9% of RRIL’s consolidated profit after tax of Rs 10.97 crore. The auditor disclosed subsidiary profits of Rs 4.20 crore and Rs 6.33 crore.

How much profit did RRIL subsidiaries report?

RRIL’s subsidiaries reported aggregate profit after tax of Rs 10.53 crore for the half year ended September 30, 2026. The independent auditor disclosed Rs 4.20 crore of profit after tax and total comprehensive income for one subsidiary, and Rs 6.33 crore for another subsidiary. The combined result was Rs 44.75 lakh below RRIL’s consolidated profit after tax of Rs 10.97 crore.

The auditor’s report names Raj Rajendra Industries Limited and Sumati Spintex Private Limited as RRIL subsidiaries, but it does not match the Rs 4.20 crore and Rs 6.33 crore figures to either entity. It also does not provide a reconciliation between the two disclosed subsidiary profits and the consolidated result for the six months ended September 30, 2026.

The combined subsidiary profit equalled about 95.9% of RRIL’s Rs 10.97 crore consolidated profit after tax. This is a comparison of the auditor’s disclosed subsidiary profit-after-tax figures with the group’s reported consolidated profit after tax, rather than a separate attribution of group earnings to each subsidiary.

What did RRIL report in its consolidated results?

RRIL reported consolidated profit after tax of Rs 10.97 crore for the half year ended September 30, 2026, compared with Rs 3.99 crore in the half year ended September 30, 2025. Profit before tax rose to Rs 13.58 crore from Rs 5.62 crore, while tax expense was Rs 2.60 crore in the latest half year.

Consolidated revenue from operations increased to Rs 147.13 crore from Rs 67.24 crore, and total revenue rose to Rs 152.71 crore from Rs 52.96 crore. Total expenses were Rs 139.13 crore for the half year ended September 30, 2026, compared with Rs 57.29 crore a year earlier.

The year-on-year figures do not represent an unchanged consolidation perimeter. RRIL said it acquired an additional 25% equity interest in Sumati Spintex Private Limited on July 22, 2026, raising its holding to 75% and making the company a subsidiary. RRIL also said Sumati Spintex Private Limited was not included in the previous quarter and previous year financial results.

How do subsidiary revenues compare with RRIL group revenue?

The auditor disclosed combined subsidiary total revenue of Rs 151.55 crore for the half year ended September 30, 2026. One subsidiary reported total revenue of Rs 65.73 crore and the other reported Rs 85.81 crore, against RRIL’s consolidated total revenue of Rs 152.71 crore for the same period.

The Rs 1.16 crore difference between combined disclosed subsidiary revenue and consolidated total revenue means the figures should not be treated as directly additive without further detail. The auditor described the subsidiary figures as total revenue, while RRIL separately reported Rs 147.13 crore of revenue from operations and Rs 5.57 crore of other income in its consolidated statement.

Combined subsidiary revenue exceeded RRIL’s consolidated revenue from operations by Rs 4.42 crore. The filing does not split each subsidiary’s disclosed total revenue between operating revenue and other income, and it does not provide a revenue reconciliation between the subsidiary disclosures and the consolidated statement.

RRIL’s results also identify textile and real estate as its operating segments under Indian Accounting Standard 108, or Ind AS 108. However, the supplied consolidated segment table does not set out readable half-year segment values, so the filing does not support assigning the Rs 10.53 crore combined subsidiary profit to either textile or real estate.

What review work covered the subsidiary results?

RRIL’s statutory auditor, Subramaniam Bengali & Associates, issued an unmodified limited-review conclusion on the consolidated results for the quarter and half year ended September 30, 2026. The auditor said nothing had come to its attention to indicate that the consolidated statement had not disclosed required information or contained a material misstatement.

The auditor stated that a limited review is narrower in scope than an audit and provides moderate assurance. RRIL’s consolidated results were reviewed and recommended by the Audit Committee and approved by the board on November 14, 2026, under Regulation 33 of the Securities and Exchange Board of India listing regulations.

For the subsidiary reporting Rs 4.20 crore of half-year profit after tax, the auditor said interim financial information had been reviewed by that subsidiary’s independent auditor. RRIL’s auditor based its conclusion on the other auditor’s report and its stated review procedures for the subsidiary’s amounts and disclosures.

For the subsidiary reporting Rs 6.33 crore of half-year profit after tax, the auditor said the interim financial information had not been reviewed by another auditor and had been furnished by management. The auditor said its conclusion was not modified in respect of reliance on the other auditor’s work and management-certified financial information.

Conclusion

RRIL’s half-year consolidated profit of Rs 10.97 crore was close to the Rs 10.53 crore combined profit after tax disclosed for its two subsidiaries. The comparison indicates that subsidiary businesses accounted for most of the group’s reported earnings for the period, although the filing does not identify the profit of each named subsidiary or reconcile the Rs 44.75 lakh difference.

The next reported results will show the continuing effect of RRIL’s July 22, 2026 acquisition of the additional 25% stake in Sumati Spintex Private Limited, which took its holding to 75%. Investors can also watch for whether RRIL provides a fuller subsidiary-level reconciliation, given that earlier comparative figures excluded Sumati Spintex Private Limited.