South West Pinnacle H1 profit rises 24% as revenue grows 16%

South West Pinnacle Exploration Limited, referred to as South West Pinnacle, reported consolidated net profit of Rs 13.317 crore for the half year ended September 30, 2026, up 24% from Rs 10.7606 crore a year earlier, as revenue from operations increased 16% to Rs 119.4125 crore. The half-year advance came despite a sequential decline in September-quarter revenue and profit.

How did South West Pinnacle perform in the first half?

South West Pinnacle increased revenue from operations by Rs 16.7516 crore to Rs 119.4125 crore in the half year ended September 30, 2026, from Rs 102.6609 crore in the corresponding 2025 period. Total income rose to Rs 120.7807 crore from Rs 104.6771 crore, while profit before tax increased to Rs 16.916 crore from Rs 14.1108 crore.

Net profit rose by Rs 2.5576 crore to Rs 13.317 crore, while profit attributable to the parent’s owners was Rs 13.3172 crore. Basic earnings per share, not annualised, increased to Rs 4.28 from Rs 3.61. Other comprehensive income was Rs 6.7478 crore, against Rs 8.84 lakh a year earlier, taking total comprehensive income to Rs 20.0648 crore.

Why did South West Pinnacle’s September-quarter profit fall?

South West Pinnacle’s consolidated net profit declined to Rs 3.981 crore in the quarter ended September 30, 2026, from Rs 9.336 crore in the June 2026 quarter. Revenue from operations fell to Rs 57.7304 crore from Rs 61.6821 crore, and profit before tax decreased to Rs 5.0164 crore from Rs 11.8996 crore over the same sequential comparison.

The filing shows materials and employee costs rose while quarterly revenue declined. Cost of materials consumed increased to Rs 15.2264 crore in the September quarter from Rs 12.9254 crore in June, while employee benefits expense rose to Rs 13.1776 crore from Rs 11.2454 crore. Total expenses increased to Rs 54.5455 crore from Rs 51.5447 crore, reducing profit before joint-venture share and tax to Rs 4.1133 crore from Rs 10.5772 crore.

The September quarter was also below the year-earlier quarter, when revenue from operations was Rs 62.4447 crore and net profit was Rs 8.3574 crore. South West Pinnacle says mobilisation and demobilisation of resources, including rigs, in its drilling and exploration business can sometimes affect revenue and profitability. The company reported no exceptional items in either September 2026 or June 2026.

Which business produced South West Pinnacle’s revenue?

South West Pinnacle reported all first-half operating revenue from its drilling and exploration segment, which generated Rs 119.4125 crore in the half year ended September 30, 2026, compared with Rs 102.6609 crore a year earlier. Segment profit before the share of joint-venture profit or loss and tax increased to Rs 14.6905 crore from Rs 12.9552 crore.

Coal mining and trading recorded no segment revenue and no segment result in either first-half period. Coal segment assets stood at Rs 22.9852 crore at September 30, 2026, compared with Rs 19.3058 crore at March 31, 2026. The filing identifies Rs 22.9852 crore of intangible assets under development in the consolidated balance sheet at the half-year date.

Joint ventures contributed Rs 2.2255 crore to consolidated first-half profit before tax, compared with Rs 1.1555 crore in the previous-year half. This lifted consolidated profit before tax to Rs 16.916 crore, from the drilling and exploration result of Rs 14.6905 crore before that contribution. The consolidated results cover three subsidiaries and three joint ventures named in the filing.

What changed in South West Pinnacle’s cash flow and balance sheet?

South West Pinnacle reported operating cash inflow of Rs 16.1076 crore for the half year ended September 30, 2026, reversing an outflow of Rs 3.1622 crore in the prior-year half. The largest working-capital movement was a Rs 19.781 crore decrease in trade receivables, compared with a Rs 23.3266 crore increase a year earlier. Cash generated from operations was Rs 25.7346 crore, versus an outflow of Rs 1.9164 crore, before taxes paid.

Taxes paid were Rs 9.627 crore, while investing activities used Rs 30.3064 crore. Investing cash use included Rs 14.7795 crore for property, plant and equipment, Rs 5.3763 crore invested in fixed deposits and Rs 3.6794 crore in intangible assets under development. Financing activities provided Rs 13.7113 crore, including Rs 27.9743 crore of proceeds from share warrants and a net Rs 16.9983 crore repayment of short-term borrowings.

Consolidated trade receivables stood at Rs 96.7382 crore on September 30, 2026, down from Rs 116.5521 crore at March 31, 2026, while inventories rose to Rs 55.2899 crore from Rs 50.9393 crore. Total equity increased to Rs 251.5685 crore from Rs 203.5294 crore and current liabilities declined to Rs 73.6513 crore from Rs 105.697 crore. Cash and cash equivalents fell to Rs 80.65 lakh from Rs 1.294 crore after net cash outflow of Rs 48.75 lakh.

What is South West Pinnacle planning for its coal block?

South West Pinnacle says it is finalising the mining plan for its allocated Jharkhand coal block and expects to submit it in the near future. The company says it has completed exploration activities, submitted the geological report, and received approval for that report. The filing does not disclose a planned submission date, mine-development budget or production timetable.

The coal business remained without revenue in the half year ended September 30, 2026, while its segment assets increased by Rs 3.6794 crore from the March 31, 2026 balance. The reported Rs 22.9852 crore coal-segment asset balance matched consolidated intangible assets under development at September 30. The mining-plan submission is therefore the next disclosed procedural step in development of the block.

Conclusion

South West Pinnacle’s first-half results combined a 16% rise in operating revenue with a 24% increase in consolidated net profit, while drilling and exploration remained its only revenue-producing segment. The Rs 2.2255 crore contribution from joint ventures supported first-half profit before tax, but the September quarter showed lower revenue and substantially lower net profit than the June quarter as materials and employee expenses increased.

The next disclosed development to watch is South West Pinnacle’s expected submission of the mining plan for its Jharkhand coal block after approval of the geological report. The next results will also show whether drilling and exploration revenue recovers from the September-quarter Rs 57.7304 crore level and whether the fall in receivables, which helped produce Rs 16.1076 crore of operating cash inflow, continues.