Solana Biofuels narrows Q2 loss to Rs 1.70 crore year-on-year

Solana Biofuels Limited narrowed its net loss to Rs 1.70 crore in the quarter ended September 30, 2026, from Rs 2.78 crore a year earlier, although revenue from operations fell 19% to Rs 15.13 crore. A Rs 18.58 crore credit from inventory changes, versus a Rs 2.29 lakh expense a year earlier, reduced reported costs.

How did Solana Biofuels perform in the September 2026 quarter?

Solana Biofuels reported a net loss of Rs 1.70 crore for the quarter ended September 30, 2026, compared with a Rs 2.78 crore loss in the quarter ended September 30, 2025. Loss before tax was also Rs 1.70 crore because the results show no tax expense in either quarter. Basic and diluted loss per share narrowed to Rs 0.38 from Rs 0.62.

Revenue from operations fell to Rs 15.13 crore from Rs 18.67 crore, a reduction of Rs 3.54 crore. Other income increased to Rs 6.12 lakh from Rs 5.46 lakh, taking total income to Rs 15.19 crore from Rs 18.72 crore. Total expenses declined by Rs 4.62 crore to Rs 16.89 crore, a larger fall than the reduction in total income.

What caused Solana Biofuels' lower quarterly loss?

Solana Biofuels' principal cost movement was changes in inventories of finished goods and work in progress, which produced a Rs 18.58 crore credit in the September 2026 quarter. The same line was a Rs 2.29 lakh expense in the September 2025 quarter. The resulting Rs 18.60 crore year-on-year swing lowered total reported expenses despite the decline in sales.

Cost of materials consumed increased to Rs 32.94 crore from Rs 18.31 crore, an increase of Rs 14.63 crore. Finance costs rose to Rs 87.00 lakh from Rs 67.59 lakh and other expenses increased to Rs 72.85 lakh from Rs 56.33 lakh. Employee-benefit expense fell to Rs 33.73 lakh from Rs 99.79 lakh, while depreciation and amortisation declined to Rs 58.98 lakh from Rs 92.74 lakh.

The loss improvement therefore coincided with lower revenue rather than higher sales. The results quantify the inventory movement but do not explain the operational reason for the credit. Material consumption rose in the same quarter in which the inventory line reduced expenses, making inventory accounting the main disclosed mechanism behind the narrower loss.

How did Solana Biofuels compare with the June 2026 quarter?

Solana Biofuels' net loss widened sequentially to Rs 1.70 crore in the September 2026 quarter from Rs 1.34 crore in the June 2026 quarter. Revenue from operations declined by Rs 6.22 crore from Rs 21.35 crore, while total expenses fell by Rs 5.86 crore to Rs 16.89 crore. The smaller fall in expenses than in income increased the loss by Rs 36.15 lakh.

Changes in inventories remained a credit in both quarters, rising to Rs 18.58 crore from Rs 11.83 crore in June 2026. Cost of materials consumed increased to Rs 32.94 crore from Rs 32.62 crore, finance costs rose to Rs 87.00 lakh from Rs 67.41 lakh, and other expenses increased to Rs 72.85 lakh from Rs 42.84 lakh.

For the half year ended September 30, 2026, Solana Biofuels recorded a Rs 3.04 crore net loss, compared with a Rs 6.79 crore loss in the corresponding half year of 2025. Half-year revenue from operations fell to Rs 36.47 crore from Rs 48.06 crore, while total expenses declined to Rs 39.63 crore from Rs 54.99 crore. Inventory changes were a Rs 30.41 crore credit, compared with a Rs 11.40 crore expense a year earlier.

Which Solana Biofuels segments contributed to the result?

Solana Biofuels' biofuels business remained its main reported sales segment, with revenue from sale of biofuels of Rs 14.95 crore in the September 2026 quarter, down from Rs 18.52 crore a year earlier. Internet Services revenue was Rs 23.29 lakh, up from Rs 19.84 lakh. The segment statement labels the combined Rs 15.19 crore as revenue from operations, matching total income in the profit-and-loss statement.

The Bio Diesel segment reported an earnings before interest, tax, depreciation and amortisation, or EBITDA, loss of Rs 50.62 lakh, compared with a Rs 1.16 crore loss a year earlier. Internet Services reported EBITDA of Rs 3.33 lakh, against an EBITDA loss of Rs 5.19 lakh. Total segment EBITDA loss consequently narrowed to Rs 47.29 lakh from Rs 1.21 crore.

At the earnings before interest and tax level, Bio Diesel recorded a Rs 92.13 lakh loss versus a Rs 2.08 crore loss in the September 2025 quarter. Internet Services generated earnings before interest and tax of Rs 3.13 lakh, compared with a Rs 5.83 lakh loss. Finance costs of Rs 87.00 lakh and interest and other income of Rs 6.12 lakh then contributed to the reported pre-tax loss of Rs 1.70 crore.

What changed in Solana Biofuels' balance sheet and cash flow?

Solana Biofuels' total assets increased to Rs 266.68 crore at September 30, 2026, from Rs 225.04 crore at March 31, 2026. Inventories rose to Rs 72.47 crore from Rs 33.11 crore, while capital work in progress increased to Rs 97.03 crore from Rs 87.17 crore. Trade receivables declined to Rs 10.28 crore from Rs 16.70 crore over the same period.

Total equity decreased to Rs 21.21 crore from Rs 24.24 crore, consistent with the Rs 3.04 crore half-year loss. Non-current borrowings rose to Rs 157.69 crore from Rs 152.77 crore, while current borrowings increased to Rs 33.94 crore from Rs 25.22 crore. Amounts due to creditors other than micro, small and medium enterprises rose to Rs 50.17 crore from Rs 19.30 crore.

The half-year cash-flow statement reported Rs 6.48 crore of net cash from operating activities, compared with Rs 1.38 crore of net cash used in the year ended March 31, 2026. Inventory growth used Rs 39.36 crore of cash, while trade and other payables provided Rs 30.86 crore. Purchases of property, plant and equipment used Rs 9.86 crore, and the cash-flow statement showed closing cash and cash equivalents of Rs 1.31 crore.

Conclusion

Solana Biofuels reduced its September-quarter loss year-on-year, but the result came with a Rs 3.54 crore decline in revenue from operations. The reported expense reduction was primarily associated with the Rs 18.58 crore inventory credit, while materials consumed increased by Rs 14.63 crore. Biofuels remained the dominant segment, producing Rs 14.95 crore of reported segment revenue and an EBITDA loss of Rs 50.62 lakh.

The results disclose no sales target, production plan or earnings guidance. The main unresolved matter for subsequent disclosures is the reason for the inventory movement, especially as inventories reached Rs 72.47 crore, capital work in progress was Rs 97.03 crore and total borrowings were Rs 191.63 crore at September 30, 2026.