Solve Plastic posts Rs 1.22 crore first-half loss in 2026

Solve Plastic Products Limited reported a Rs 1.22 crore loss for the half year ended September 30, 2026, reversing from a Rs 41.82 lakh profit a year earlier, as total expenses of Rs 26.60 crore exceeded total income of Rs 25.54 crore and operating activities used Rs 4 crore of cash.

Why did Solve Plastic post a first-half loss?

Solve Plastic posted a first-half loss because its Rs 26.60 crore of total expenses exceeded Rs 25.54 crore of total income in the half year ended September 30, 2026. The result was a pre-tax loss of Rs 1.07 crore, compared with a pre-tax profit of Rs 65.55 lakh in the corresponding half year ended September 30, 2025. A deferred-tax charge of Rs 16.07 lakh took the reported loss to Rs 1.22 crore.

The company had reported a Rs 41.82 lakh profit in the September 2025 half year, making the September 2026 outcome a reversal of Rs 1.64 crore year on year. Basic and diluted loss per share were both Rs 2.80, against earnings per share of Rs 0.96 in the prior-year half. Reserves and surplus declined to Rs 4.82 crore at September 30, 2026, from Rs 6.05 crore at March 31, 2026, while paid-up share capital remained Rs 4.36 crore.

How did Solve Plastic's costs change from last year?

Solve Plastic's expenses increased by Rs 5.01 crore year on year, exceeding the Rs 3.32 crore increase in total income. Cost of materials consumed rose to Rs 19 crore from Rs 13.12 crore, an increase of Rs 5.88 crore and the largest disclosed expense movement. The rise in material costs was larger than the increase in total income, contributing to the pre-tax loss.

Some cost lines declined, but did not offset the increase in materials consumed. Employee benefits expense fell to Rs 2.44 crore from Rs 2.98 crore, other expenses declined to Rs 4.27 crore from Rs 4.67 crore, and depreciation and amortisation fell to Rs 40.66 lakh from Rs 46.81 lakh. Other income also declined to Rs 14.46 lakh from Rs 42.12 lakh during the two half-year periods.

Solve Plastic's September 2026 result was also weaker than its immediately preceding half year ended March 31, 2026. It reported total income of Rs 23.87 crore and total expenses of Rs 23.93 crore in that period, resulting in a pre-tax loss of Rs 5.81 lakh but a profit after tax of Rs 1.89 lakh. The September pre-tax shortfall widened to Rs 1.07 crore as the gap between expenses and income increased.

What happened to Solve Plastic's operating cash flow?

Solve Plastic recorded an operating cash outflow of Rs 4 crore in the half year ended September 30, 2026, compared with an inflow of Rs 1.93 crore in the corresponding 2025 half year. Operating profit before working-capital changes fell to Rs 12.74 lakh from Rs 1.73 crore. The cash-flow statement shows a Rs 3.43 crore decrease in current liabilities, against a Rs 2.92 crore increase a year earlier.

Loans and advances used Rs 5.15 lakh of cash, current assets used Rs 12.66 lakh, and non-current liabilities declined by Rs 52.09 lakh in the September 2026 half year. These movements followed the company’s Rs 1.07 crore pre-tax loss and were reflected in the cash generated from operating activities figure of negative Rs 4 crore. The filing says the cash-flow statement was prepared under the indirect method prescribed by Accounting Standard 3, Cash Flow Statements.

Investing activities used Rs 83.21 lakh, including Rs 84.05 lakh for acquisition of fixed assets, while financing activities provided Rs 1.93 crore. The financing section reports Rs 2.63 crore from acceptance or increase of borrowings and interest paid of Rs 69.60 lakh. Net cash and cash equivalents declined by Rs 2.90 crore during the period, compared with an increase of Rs 1.55 lakh in the prior-year half.

How much cash did Solve Plastic report at September 2026?

Solve Plastic reported cash and cash equivalents of Rs 8.14 lakh at September 30, 2026, down from Rs 2.99 crore at March 31, 2026. This closing balance is shown in both the statement of assets and liabilities and the main cash-flow statement. The company started the half year with Rs 2.99 crore of cash and cash equivalents before the reported Rs 2.90 crore reduction.

The cash-flow note contains a differing printed total. It lists Rs 74,000 of cash on hand and Rs 7.39 lakh of bank balances, but prints total cash and cash equivalents of Rs 6.14 lakh, while the main statement prints Rs 8.14 lakh. The filing does not explain the difference between the printed component-table total and the closing balance elsewhere in the results.

Cash was not the only current-asset change during the six months. Inventories decreased to Rs 8.10 crore from Rs 8.51 crore, and trade receivables declined to Rs 3.94 crore from Rs 4.35 crore. Short-term loans and advances, however, rose to Rs 3.22 crore from Rs 2.30 crore, while other current assets increased to Rs 24.64 lakh from Rs 22.94 lakh.

How did Solve Plastic's borrowings and balance sheet change?

Solve Plastic's long-term borrowings increased to Rs 7.05 crore at September 30, 2026, from Rs 1.97 crore at March 31, 2026, while short-term borrowings fell to Rs 6.91 crore from Rs 9.36 crore. Finance costs were Rs 73.21 lakh in the September 2026 half year, compared with Rs 51.48 lakh in the half year ended March 31, 2026. The balance-sheet figures show changes in both long-term and short-term borrowing balances.

Total assets declined to Rs 27 crore from Rs 29.45 crore over the six months. Property, plant and equipment rose to Rs 8.84 crore from Rs 5.54 crore, while capital work in progress fell to Rs 22.43 lakh from Rs 3.08 crore. Deferred-tax assets declined to Rs 1.72 crore from Rs 1.88 crore during the same period.

Trade payables to creditors other than micro and small enterprises fell to Rs 2.25 crore from Rs 4.62 crore, while payables to micro and small enterprises declined to Rs 39.76 lakh from Rs 74.56 lakh. Other current liabilities declined to Rs 42.86 lakh from Rs 1.14 crore. These reported reductions are consistent with the cash-flow statement’s aggregate Rs 3.43 crore decrease in current liabilities.

What did Solve Plastic disclose about the review and IPO funds?

Solve Plastic said its board approved the unaudited standalone financial statements for the half year ended September 30, 2026 at its November 13, 2026 meeting. The independent auditor issued a limited-review conclusion on the same date, stating that nothing had come to its attention to suggest the results were materially misstated under applicable accounting standards and Securities and Exchange Board of India listing requirements.

The auditor said its work was a review conducted under Standard on Review Engagements 2410, which provides moderate assurance and is not an audit opinion. It noted that the comparative half-year figures for September 2025 and March 2026 were unaudited. The audited year ended March 31, 2026 had received an unmodified audit opinion dated May 29, 2026.

The board also said there were no deviations in utilisation of initial public offering funds. Its review of related-party transactions was deferred for consideration through a separate meeting or circular resolution. The filing does not provide a date for that review or disclose further details of the matters to be considered.

Conclusion

Solve Plastic’s September 2026 half-year results show a reversal from a Rs 41.82 lakh profit to a Rs 1.22 crore loss, with materials consumed rising by Rs 5.88 crore year on year and total expenses increasing faster than total income. Cash flow also reversed, from a Rs 1.93 crore operating inflow to a Rs 4 crore outflow, leaving reported cash and cash equivalents at Rs 8.14 lakh.

The next reported developments to watch are whether operating cash flow changes after the Rs 3.43 crore reduction in current liabilities, how the Rs 7.05 crore long-term borrowing balance develops, and when the board completes its deferred review of related-party transactions. The filing also leaves unresolved the difference between the Rs 8.14 lakh closing cash balance and the Rs 6.14 lakh total printed in the cash-components note.