S Chand first-half loss widens to Rs 85.63 crore as costs rise

S Chand And Company Limited recorded a consolidated loss after tax of Rs 85.63 crore for the half year ended 30 September 2026, up from Rs 67.66 crore a year earlier, although revenue from operations rose 6.8% to Rs 162.37 crore; net cash used in operating activities increased to Rs 67.34 crore.

Why did S Chand’s first-half loss widen?

S Chand’s first-half loss widened because total expenses increased by Rs 28.56 crore, exceeding the Rs 12.66 crore increase in total income. Loss before tax rose to Rs 105.05 crore for the half year ended 30 September 2026 from Rs 89.15 crore in the corresponding period of 2025, while loss after tax increased by Rs 17.97 crore to Rs 85.63 crore.

Employee benefits expense increased to Rs 99.54 crore from Rs 90.55 crore, other expenses rose to Rs 88.45 crore from Rs 70.90 crore, and published-goods and materials-consumed cost reached Rs 60.51 crore from Rs 49.15 crore. These cost increases came alongside a Rs 10.40 crore rise in revenue from operations and a Rs 2.26 crore increase in other income.

S Chand reported a total comprehensive loss of Rs 85.60 crore for the September 2026 half year, compared with Rs 67.04 crore a year earlier. The loss attributable to equity holders of the parent was Rs 83.94 crore, while the loss attributable to non-controlling interests was Rs 1.69 crore.

How did S Chand’s revenue and quarterly result change?

S Chand’s first-half revenue from operations rose 6.8% to Rs 162.37 crore, but the September 2026 quarter generated lower revenue than both the preceding quarter and the year-earlier quarter. Revenue from operations was Rs 47.82 crore in the quarter ended 30 September 2026, against Rs 114.55 crore in the quarter ended 30 June 2026 and Rs 49.35 crore in the quarter ended 30 September 2025.

The quarterly loss after tax widened to Rs 66.90 crore in the September 2026 quarter from Rs 53.59 crore a year earlier and Rs 18.73 crore in the June 2026 quarter. Total expenses in the September quarter were Rs 138.73 crore, compared with total income of Rs 52.73 crore, producing a loss before tax of Rs 86.00 crore.

S Chand said its publishing-of-books business has historically been seasonal, with higher sales volumes in January, February and March before academic sessions begin in April. The company said revenue is generally lower in quarters that are not close to the start of the academic session, which includes the September 2026 quarter’s Rs 47.82 crore of revenue.

The group reports one operating segment, publishing of books, under Indian Accounting Standard 108, or Ind AS 108. It said it primarily operates in India, while its geographical disclosure analyses revenue and trade receivables from India and other countries.

Why did S Chand’s operating cash outflow increase?

S Chand used Rs 67.34 crore in operating activities during the half year ended 30 September 2026, compared with Rs 38.75 crore used in the prior-year half. The increase of Rs 28.59 crore followed an operating loss before working-capital changes of Rs 78.00 crore, against Rs 67.12 crore a year earlier.

Cash used in operations increased to Rs 64.55 crore from Rs 32.67 crore in the comparable 2025 period. The reported loss before tax also widened to Rs 105.05 crore from Rs 89.15 crore, while the cash-flow statement showed net cash used in financing activities of Rs 43.76 crore, compared with Rs 3.47 crore a year earlier.

Investing activities generated Rs 19.69 crore in the September 2026 half year, whereas they used Rs 20.48 crore in the prior-year period. After operating, investing and financing movements, S Chand reported cash and cash equivalents of Rs 13.04 crore at 30 September 2026, compared with Rs 33.33 crore at 30 September 2025.

What changed in S Chand’s balance sheet and tax position?

S Chand’s total assets fell to Rs 1,208.13 crore at 30 September 2026 from Rs 1,395.38 crore at 31 March 2026. Current assets declined by Rs 191.20 crore to Rs 534.45 crore, while non-current assets increased by Rs 3.95 crore to Rs 673.68 crore.

Total equity declined to Rs 951.03 crore at 30 September 2026 from Rs 1,050.75 crore at the March 2026 year end. Current liabilities fell to Rs 193.21 crore from Rs 275.92 crore, and non-current liabilities declined to Rs 63.89 crore from Rs 68.71 crore over the same period.

S Chand said it intends to opt for the lower tax regime under Section 115BAA of the Income-tax Act from financial year 2026-27, following amendments made through the Finance Act, 2026. It said deferred tax was recalculated accordingly; the half-year deferred-tax credit was Rs 16.72 crore, compared with a Rs 21.68 crore credit a year earlier.

The prior financial year included an exceptional provision of Rs 3.26 crore relating to the four Labour Codes implemented by the Government of India from 21 November 2025. S Chand classified that amount as exceptional in the year ended 31 March 2026 because it described the item as material, regulatory-driven and non-recurring.

What did S Chand’s auditor conclude on the results?

S Chand’s statutory auditor, Walker Chandiok & Co LLP, issued an unmodified limited-review conclusion dated 5 November 2026. The auditor said nothing had come to its attention that caused it to believe the September 2026 consolidated results were materially misstated or did not contain the disclosures required under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The review was not an audit opinion, as the auditor stated that a review has a substantially narrower scope than an audit. S Chand’s Audit Committee and Board reviewed, approved and took the quarterly and half-year results on record on 5 November 2026.

Walker Chandiok & Co LLP did not itself review the interim financial information of nine subsidiaries included in the consolidated statement. Those subsidiaries had total assets of Rs 343.69 crore at 30 September 2026, revenue of Rs 77.25 crore and a net loss after tax of Rs 26.63 crore for the half year; the auditor relied on review reports issued by other auditors for those entities.

Conclusion

S Chand’s September 2026 half-year result combined 6.8% revenue growth with a 26.6% wider consolidated loss, as total expenses rose 11.5% to Rs 276.25 crore. The cash-flow position also changed materially: operating cash outflow increased to Rs 67.34 crore, financing cash outflow was Rs 43.76 crore, and cash and cash equivalents stood at Rs 13.04 crore at the period end.

The next periods will be measured against S Chand’s disclosed January-to-March sales season, when book volumes are normally higher before April academic sessions. Management’s stated plan to adopt the Section 115BAA lower-tax regime from financial year 2026-27, following its deferred-tax recalculation, is another disclosed item to watch.