Sandesh posts Rs 2.092 crore Q2 loss on valuation hit

The Sandesh Limited posted a consolidated loss attributable to owners of Rs 2.092 crore for the quarter ended September 30, 2026, after a Rs 20.9751 crore fair-value loss on equity shares and mutual funds outweighed Rs 16.2502 crore of segment profit before interest and tax.

Why did Sandesh report a September-quarter consolidated loss?

Sandesh reported a quarterly loss because a Rs 20.9751 crore net loss on investments measured at fair value through profit or loss, or FVTPL, was recognised in other expenses. This contrasted with a Rs 85.5945 crore FVTPL gain recognised in other income in the quarter ended June 30, 2026. The September-quarter loss before tax was Rs 0.3413 crore, against profit before tax of Rs 110.0397 crore in June and Rs 7.1953 crore in the quarter ended September 30, 2025.

Total income was Rs 149.4072 crore in the September 2026 quarter, compared with Rs 82.0959 crore a year earlier and Rs 550.4008 crore in June 2026. Total expenses were Rs 149.7485 crore, up from Rs 74.9005 crore a year earlier but below Rs 440.3611 crore in June. Other income fell to Rs 5.3087 crore from Rs 92.3472 crore sequentially as the June-period valuation gain was not repeated.

How did Sandesh's operating segments perform in the quarter?

Sandesh's media segment reported profit before interest and tax of Rs 15.1993 crore in the September 2026 quarter, down from Rs 20.9521 crore a year earlier but up from Rs 14.2970 crore in June. Media revenue was Rs 71.1191 crore, compared with Rs 77.0325 crore in the September 2025 quarter and Rs 65.6194 crore in the preceding quarter.

The trading-in-commodities segment generated revenue of Rs 73.1822 crore and profit before interest and tax of Rs 1.0509 crore in the September quarter. That compared with Rs 394.1441 crore of revenue and Rs 5.6911 crore of segment profit in June. Media and commodities together produced Rs 16.2502 crore of segment profit, versus Rs 19.9881 crore in June and Rs 21.8945 crore a year earlier.

Sandesh recorded unallocated net expense of Rs 16.5436 crore in the September quarter, compared with unallocated net income of Rs 90.0871 crore in June and unallocated net expense of Rs 14.5648 crore a year earlier. Interest expense was Rs 0.0479 crore, versus Rs 0.0355 crore in June. These unallocated items reduced the positive segment result to the Rs 0.3413 crore consolidated loss before tax.

What changed in Sandesh's first-half earnings and balance sheet?

Sandesh reported profit before tax of Rs 109.6984 crore for the half year ended September 30, 2026, compared with Rs 78.6579 crore for the corresponding 2025 half year. The 2026 first-half result included a Rs 64.6194 crore net gain on FVTPL equity shares and mutual funds, compared with a Rs 30.9616 crore gain a year earlier. The September-quarter loss therefore followed a June-period gain that supported the half-year outcome.

At September 30, 2026, total assets were Rs 1,611.1487 crore, compared with Rs 1,526.6407 crore at March 31, 2026. Current investments rose to Rs 874.0195 crore from Rs 590.9343 crore, while non-current investments increased to Rs 434.4655 crore from Rs 412.7529 crore. Inventories declined to Rs 73.1022 crore from Rs 254.2754 crore, and cash and cash equivalents fell to Rs 10.8322 crore from Rs 20.4616 crore.

How did Sandesh's first-half cash flow change?

Sandesh generated net operating cash flow of Rs 354.5338 crore in the half year ended September 30, 2026, compared with Rs 25.5230 crore in the corresponding 2025 period. Operating profit before working-capital changes was Rs 167.2112 crore, while the cash-flow statement recorded Rs 181.7732 crore from inventories and Rs 140.0500 crore from trade and other receivables.

Investing activities used Rs 350.7011 crore, compared with Rs 32.0484 crore in the prior-year half year. Net investments accounted for Rs 370.0507 crore of the 2026 investing outflow, while purchases of property, plant and equipment were Rs 7.2027 crore. Dividends paid were Rs 3.7847 crore and finance costs paid were Rs 0.0834 crore, resulting in a Rs 10.0354 crore decrease in cash and cash equivalents.

The closing cash and cash-equivalents balance was Rs 10.8322 crore at September 30, 2026, compared with an opening balance of Rs 20.4676 crore. Net cash generated from operations broadly funded the Rs 350.7011 crore investing outflow, but investing and financing cash uses together exceeded operating inflows. The filing does not provide a breakdown of the individual investments underlying the net investment cash outflow.

What is Sandesh's plan for Sandesh Digital Private Limited?

Sandesh's board approved a scheme to amalgamate Sandesh Digital Private Limited, its wholly owned subsidiary, into Sandesh on August 5, 2026. The proposed appointed date is April 1, 2026, subject to required regulatory approvals. Sandesh said it subsequently filed an application before the National Company Law Tribunal, or NCLT.

The September 2026 consolidated results include the financial results of Sandesh Digital Private Limited. Sandesh's audit committee reviewed and recommended the results, and the board approved them on November 3, 2026. Statutory auditor Manubhai & Shah LLP issued a limited-review conclusion without qualification, stating that nothing had come to its attention to indicate a material misstatement under the applicable listing requirements.

Conclusion

Sandesh's September-quarter loss shows that the reported consolidated outcome was driven by investment valuation movements rather than by segment losses. Media and commodities delivered Rs 16.2502 crore of combined segment profit before interest and tax, but the Rs 20.9751 crore FVTPL investment loss and Rs 16.5436 crore of unallocated net expense resulted in a loss before tax of Rs 0.3413 crore and a loss attributable to owners of Rs 2.092 crore.

The disclosed event to watch next is the NCLT process for the proposed merger of Sandesh Digital Private Limited into Sandesh, which has an appointed date of April 1, 2026 but remains subject to regulatory approvals. Future results will also continue to include the effect of FVTPL movements, after current and non-current investments together stood at Rs 1,308.4850 crore at September 30, 2026.