Shree Hari Chemicals H1 profit rises to Rs 20.9752 crore

Shree Hari Chemicals Export Limited reported standalone net profit of Rs 20.9752 crore for the half year ended September 30, 2026, compared with Rs 1.8747 crore a year earlier, as revenue from operations rose to Rs 134.1492 crore from Rs 98.804 crore. Profit before tax reached Rs 27.9955 crore, against Rs 2.5868 crore.

How did Shree Hari Chemicals perform in the half year?

Shree Hari Chemicals increased standalone total income to Rs 135.8074 crore in the half year ended September 30, 2026, from Rs 99.5764 crore in the half year ended September 30, 2025. Revenue from operations accounted for Rs 134.1492 crore of the latest total, while other income was Rs 1.6582 crore, compared with Rs 77.24 lakh in the prior-year period.

Profit before tax rose to Rs 27.9955 crore from Rs 2.5868 crore, while net profit increased to Rs 20.9752 crore from Rs 1.8747 crore. Total tax expense was Rs 7.0203 crore, compared with Rs 71.21 lakh a year earlier. The standalone results reported no exceptional or extraordinary items in either half-year period.

Revenue from operations increased by Rs 35.3452 crore year on year, while profit before tax increased by Rs 25.4087 crore. Total expenses rose to Rs 107.8118 crore from Rs 96.9896 crore, an increase of Rs 10.8222 crore that was lower than the increase in total income.

What changed in Shree Hari Chemicals' expenses and tax charge?

Shree Hari Chemicals reported cost of materials consumed of Rs 68.3128 crore in the half year ended September 30, 2026, compared with Rs 42.3411 crore in the prior-year half. Changes in inventories of finished goods, work-in-progress and stock-in-trade were Rs 9.7453 crore, against Rs 8.213 crore, while employee-benefit expenses were Rs 1.0808 crore, compared with Rs 1.0623 crore.

Finance costs increased to Rs 1.5215 crore from Rs 1.1028 crore, and depreciation and amortisation rose to Rs 2.3741 crore from Rs 1.7063 crore. Other expenses were Rs 23.741 crore, compared with Rs 17.0627 crore. These expense movements occurred alongside the Rs 36.231 crore rise in total income.

The Rs 7.0203 crore tax expense reflected current tax, deferred tax and adjustment items presented in the results. Shree Hari Chemicals also said its evaluation of the new labour code resulted in an incremental employee-benefit provision of Rs 31.61 lakh, charged to the profit and loss statement for actuarial gratuity and leave-encashment provisions.

What does Shree Hari Chemicals' cash flow show?

Shree Hari Chemicals generated Rs 16.9946 crore from operating activities after tax in the half year ended September 30, 2026, compared with an outflow of Rs 53.14 lakh in the corresponding 2025 period. Cash flow from operating activities before tax payments was Rs 17.5941 crore, versus a negative Rs 39.39 lakh, while net taxes paid were Rs 59.95 lakh, compared with Rs 13.75 lakh.

Working-capital movements used part of the operating cash generated. Trade receivables increased by Rs 23.1443 crore, against a decrease of Rs 10.849 crore in the prior-year half. Other current assets increased by Rs 5.7942 crore and inventories by Rs 2.4052 crore, while trade payables increased by Rs 16.562 crore and current liabilities including lease liabilities increased by Rs 1.0627 crore.

Investing activities used Rs 13.4136 crore, compared with an outflow of Rs 5.7389 crore a year earlier. Loans and advances given accounted for Rs 10.76 crore, while purchases of fixed assets, right-of-use assets and capital work-in-progress used Rs 1.9543 crore. Financing activities had a net cash outflow of Rs 90.51 lakh, against an inflow of Rs 7.5081 crore in the prior-year period, which included Rs 8.1791 crore of proceeds from convertible debentures.

How did Shree Hari Chemicals' balance sheet change by September?

Shree Hari Chemicals' standalone total assets increased to Rs 142.739 crore at September 30, 2026, from Rs 102.4283 crore at March 31, 2026. Current assets rose to Rs 86.9744 crore from Rs 43.7582 crore, including trade receivables of Rs 47.52 crore, inventories of Rs 15.1646 crore and loans of Rs 10.76 crore.

Cash and cash equivalents increased to Rs 3.2296 crore at September 30 from Rs 55.37 lakh at March 31. Other current assets were Rs 6.9558 crore, compared with Rs 1.1615 crore, while other financial assets declined to Rs 2.3587 crore from Rs 4.7264 crore. These movements correspond with the receivable, inventory, loan and other-current-asset cash-flow movements reported for the half year.

Equity increased to Rs 65.3772 crore from Rs 44.402 crore, comprising share capital of Rs 6.3129 crore and other equity of Rs 59.0643 crore. Current borrowings were Rs 26.0628 crore, compared with Rs 25.6339 crore at March 31, while trade payables other than dues to micro and small enterprises rose to Rs 34.9196 crore from Rs 24.5243 crore.

What was the effect of Shree Hari Chemicals' CCD conversion?

Shree Hari Chemicals converted 7,74,946 zero-coupon compulsorily convertible debentures, or CCDs, into an equal number of equity shares on April 3, 2026. The company had allotted 18,66,580 CCDs on November 15, 2024, according to the notes to its standalone financial statements.

The conversion coincided with paid-up equity share capital increasing to Rs 6.3129 crore at September 30, 2026, from Rs 5.5379 crore at March 31, 2026. The filing does not state a further conversion timetable for the CCDs that were not converted on April 3.

The standalone results were reviewed by the audit committee and approved by the board on November 6, 2026. The independent auditor's limited review stated that nothing had come to its attention to indicate that the standalone financial results had not disclosed the information required under the applicable listing regulations.

Conclusion

Shree Hari Chemicals' half-year standalone result combined a Rs 35.3452 crore increase in revenue from operations with net profit of Rs 20.9752 crore and operating cash generation after tax of Rs 16.9946 crore. The balance sheet also showed higher receivables, inventories, loans and trade payables at September 30, 2026 than at the March year-end.

The next disclosure can show whether operating cash generation continues as trade receivables of Rs 47.52 crore, loans of Rs 10.76 crore and other current assets of Rs 6.9558 crore develop. Investors can also monitor any action on the CCDs, after 7,74,946 of the 18,66,580 instruments allotted in November 2024 were converted in April 2026.