Southern Magnesium reports Rs 53.15 lakh first-half loss

Southern Magnesium and Chemicals Limited reported a Rs 53.15 lakh loss before tax for the half year ended September 30, 2026, although revenue from operations rose to Rs 60.34 lakh from Rs 23.26 lakh a year earlier. Total income declined to Rs 92.28 lakh and the company recorded a Rs 39.89 lakh post-tax loss.

Why did Southern Magnesium report a first-half loss?

Southern Magnesium reported a first-half loss because its Rs 92.28 lakh total income did not cover Rs 145.43 lakh of expenses for the six months ended September 30, 2026. Revenue from operations was Rs 60.34 lakh and other income was Rs 31.94 lakh, resulting in a Rs 53.15 lakh loss before tax. This compares with a Rs 14.50 lakh profit before tax in the half year ended September 30, 2025.

The reported loss after tax was Rs 39.89 lakh for the 2026 first half, against a Rs 11.33 lakh profit after tax in the corresponding prior-year period. Southern Magnesium recorded a deferred-tax credit of Rs 13.26 lakh during the latest half year. The audit committee reviewed the results and the board approved them on November 6, 2026; the statutory auditor issued an unqualified limited-review report.

How did Southern Magnesium's revenue and income change?

Southern Magnesium's revenue from operations increased by Rs 37.08 lakh year on year, but total income fell by Rs 118.49 lakh as other income declined. Revenue rose from Rs 23.26 lakh in the half year ended September 30, 2025 to Rs 60.34 lakh in the latest half year. Other income fell to Rs 31.94 lakh from Rs 187.51 lakh, changing the composition of reported income.

Southern Magnesium identifies magnesium as its single operating segment under Indian Accounting Standard 108, which governs operating-segment reporting. The Rs 156.57 lakh fall in other income was larger than the Rs 37.08 lakh increase in operating revenue. As a result, total income was Rs 92.28 lakh in the 2026 half year, compared with Rs 210.77 lakh in the previous-year period.

What changed on Southern Magnesium's balance sheet?

Southern Magnesium's total assets increased to Rs 18.39 crore at September 30, 2026 from Rs 18.00 crore at March 31, 2026, while total equity declined to Rs 12.65 crore from Rs 13.05 crore. Other equity declined to Rs 9.65 crore from Rs 10.05 crore, alongside the Rs 39.89 lakh half-year loss. Equity share capital was unchanged at Rs 3.00 crore.

Current assets rose to Rs 12.06 crore from Rs 11.79 crore in the six months to September 30, 2026. Inventories declined to Rs 7.99 crore from Rs 8.15 crore, while trade receivables fell to Rs 18.86 lakh from Rs 33.49 lakh. Cash and cash equivalents increased to Rs 11.58 lakh from Rs 1.35 lakh, while other bank balances remained Rs 3.05 crore at both reporting dates.

Southern Magnesium's current liabilities increased to Rs 5.74 crore from Rs 4.95 crore, led by borrowings that rose by Rs 50.87 lakh to Rs 5.18 crore. The company reported no non-current liabilities at September 30, 2026. Other current liabilities were Rs 38.70 lakh, compared with Rs 8.96 lakh at March 31, 2026, while other financial liabilities were Rs 17.79 lakh versus Rs 19.50 lakh.

How did Southern Magnesium fund its cash movements?

Southern Magnesium used Rs 53.90 lakh in operating activities during the half year ended September 30, 2026, compared with Rs 54.81 lakh used in the corresponding 2025 half year. The cash-flow statement began with a Rs 53.15 lakh pre-tax loss, adjusted for Rs 0.90 lakh of depreciation and amortisation, Rs 31.94 lakh of interest income and Rs 19.18 lakh of finance cost. Net taxes paid were Rs 3.49 lakh.

Southern Magnesium generated Rs 32.44 lakh from investing activities, comprising interest received, and generated Rs 31.69 lakh from financing activities. Financing cash flow included Rs 50.87 lakh of net proceeds from short-term loans and borrowings, partly offset by Rs 19.18 lakh of interest paid. The half-year cash-flow statement reported no purchase of property, plant, equipment or intangible assets.

Southern Magnesium ended September 30, 2026 with Rs 11.58 lakh of cash and cash equivalents, up from Rs 1.35 lakh at the beginning of the financial year. The closing balance comprised Rs 0.53 lakh of cash in hand and Rs 11.05 lakh in current accounts. The reported increase in cash followed financing inflows and interest receipts despite the Rs 53.90 lakh operating cash outflow.

Conclusion

Southern Magnesium's half-year figures show that higher operating revenue did not offset the lower other income and reported cost base in the six months ended September 30, 2026. Revenue increased to Rs 60.34 lakh, but total income fell to Rs 92.28 lakh from Rs 210.77 lakh, moving the company from a Rs 14.50 lakh pre-tax profit to a Rs 53.15 lakh pre-tax loss. Borrowings increased to Rs 5.18 crore while equity declined to Rs 12.65 crore.

The next disclosed date to watch is February 4, 2027, when the Securities and Exchange Board of India's special window for re-lodgement of eligible physical share-transfer deeds is scheduled to close. Southern Magnesium said securities transferred through this process will be issued only in dematerialised form and will be subject to a one-year lock-in from the registration date.