Sugal Earthen Spaces first-half profit falls 80% on loss

Sugal Earthen Spaces Ventures Limited (Sugal Earthen Spaces) reported an 80% year-on-year fall in consolidated net profit to Rs 67.39 lakh for the half year ended September 30, 2026, from Rs 3.35 crore a year earlier, as its real-estate business moved to a Rs 16.39 lakh loss before tax from a Rs 3.28 crore profit.

Why did Sugal Earthen Spaces' first-half profit fall?

Sugal Earthen Spaces' first-half profit fell because total income declined faster than total expenses during the half year ended September 30, 2026. Total income decreased to Rs 8.01 crore from Rs 12.56 crore in the corresponding 2025 period, while profit before tax fell to Rs 93.39 lakh from Rs 4.41 crore. Current tax expense also declined, to Rs 26 lakh from Rs 1.06 crore.

The income decline was concentrated in the operating result rather than other income. Revenue from operations fell to Rs 7.54 crore from Rs 12.04 crore, while other income was Rs 46.86 lakh against Rs 51.55 lakh. Total expenses decreased to Rs 7.08 crore from Rs 8.14 crore, but that reduction did not match the Rs 4.55 crore fall in total income.

Sugal Earthen Spaces' basic and diluted earnings per share from continuing operations declined to Rs 1.08 for the half year ended September 30, 2026, from Rs 5.36 a year earlier. Paid-up equity share capital was unchanged at Rs 6.25 crore in both periods, meaning the lower per-share earnings reflected the decline in reported profit rather than a change in the stated share capital.

How did Sugal Earthen Spaces' two segments perform?

Sugal Earthen Spaces' real-estate segment was the main driver of the first-half earnings decline, while stock broking produced a relatively similar operating result. Real-estate revenue fell to Rs 6.39 crore in the half year ended September 30, 2026 from Rs 10.92 crore a year earlier. Stock-broking revenue was Rs 1.62 crore, compared with Rs 1.63 crore in the corresponding prior-year period.

The real-estate segment reported a Rs 13.06 lakh loss before interest and taxes, reversing a Rs 3.31 crore profit before interest and taxes in the prior-year half. Following Rs 3.33 lakh of interest expense attributed to real estate, the segment recorded a Rs 16.39 lakh loss before tax, compared with a Rs 3.28 crore profit before tax in the half year ended September 30, 2025.

Stock broking reported a segment result before interest and taxes of Rs 1.10 crore, marginally below Rs 1.13 crore a year earlier. Its expenses rose to Rs 51.86 lakh from Rs 49.96 lakh, despite revenue changing by only Rs 1.62 lakh. The segment therefore supplied the larger part of the group's segment result of Rs 96.72 lakh before interest and taxes in the latest half year.

What changed in Sugal Earthen Spaces' September quarter?

Sugal Earthen Spaces made a consolidated net profit of Rs 48.40 lakh in the quarter ended September 30, 2026, compared with Rs 18.99 lakh in the June 2026 quarter and Rs 1.31 crore in the September 2025 quarter. Total income reached Rs 6.18 crore, broadly unchanged from Rs 6.17 crore a year earlier but above Rs 1.83 crore in the preceding quarter.

The September-quarter profit before tax was Rs 65.40 lakh, versus Rs 27.99 lakh in June and Rs 1.72 crore a year earlier. Real-estate revenue rose sequentially to Rs 5.42 crore from Rs 27.45 lakh in June, but its result before interest and taxes was Rs 13.35 lakh, below Rs 1.16 crore in the September 2025 quarter. Stock broking's result was Rs 53.86 lakh, compared with Rs 58.20 lakh a year earlier.

Land purchase and development cost was Rs 5.95 crore in the September 2026 quarter, compared with Rs 2.49 crore in the September 2025 quarter. The inventory movement was a Rs 1.20 crore reduction in the latest quarter, against a Rs 1.30 crore increase a year earlier, while other expenses rose to Rs 27.17 lakh from Rs 14.13 lakh.

What do Sugal Earthen Spaces' balance-sheet figures show?

Sugal Earthen Spaces' consolidated total assets rose to Rs 41.61 crore at September 30, 2026 from Rs 32.93 crore at March 31, 2026. Real-estate segment assets increased to Rs 35.08 crore from Rs 28.60 crore, while stock-broking assets rose to Rs 6.53 crore from Rs 4.33 crore. Inventories increased to Rs 8.83 crore from Rs 7.23 crore over the same period.

Total segment liabilities were Rs 10.35 crore at September 30, 2026, compared with Rs 3.01 crore at March 31, 2026. Real-estate liabilities accounted for Rs 8.51 crore, up from Rs 1.32 crore, while stock-broking liabilities were Rs 1.84 crore against Rs 1.69 crore. Total equity increased to Rs 31.26 crore from Rs 29.92 crore, and cash and cash equivalents stood at Rs 79.93 lakh compared with Rs 35 lakh at the start of the financial year.

The consolidated statement includes Sugal Earthen Spaces LLP and SGVS Developers LLP as associates. Sugal Earthen Spaces retired as a partner from Sugal Earthen Spaces Developers LLP and Solidus Developers LLP on August 5, 2026, and the filing says the financials of those two former subsidiary limited liability partnerships were not considered in the consolidated financial statement.

Conclusion

Sugal Earthen Spaces' first-half decline reflected a sharp reversal in real-estate profitability: segment profit before interest and taxes changed from Rs 3.31 crore in the half year ended September 30, 2025 to a Rs 13.06 lakh loss in the latest period. Stock broking remained comparatively steady, with its segment result moving from Rs 1.13 crore to Rs 1.10 crore, but could not offset the real-estate change.

The next results will show whether the September-quarter recovery in real-estate revenue to Rs 5.42 crore can translate into a larger segment result. The filing also says deferred-tax provision will be made at year-end, while the August 5, 2026 exit from two limited liability partnerships leaves their future effect outside the reported consolidated financial statements.