Sumit Woods Limited first-half profit rises 58% on revenue

Sumit Woods Limited reported standalone net profit of Rs 6.24 crore for the half-year ended September 30, 2026, up 58% year on year, as revenue from operations rose 55% to Rs 81.09 crore; it said percentage-of-completion accounting and real-estate seasonality can make quarterly results uneven.

How did Sumit Woods perform in the first half?

Sumit Woods increased standalone revenue from operations by Rs 28.74 crore to Rs 81.09 crore in the half-year ended September 30, 2026, from Rs 52.35 crore in the corresponding 2025 period. Total income rose to Rs 84.30 crore from Rs 55.18 crore, including other income of Rs 3.21 crore against Rs 2.83 crore a year earlier.

Profit before tax increased to Rs 8.39 crore from Rs 5.24 crore, while net profit rose to Rs 6.24 crore from Rs 3.96 crore. Current tax was Rs 2.18 crore in the 2026 half year, compared with Rs 1.26 crore a year earlier, and total comprehensive income reached Rs 6.20 crore after a Rs 3.74 lakh remeasurement loss on defined-benefit obligations.

Sumit Woods reported basic and diluted earnings per share, or EPS, of Rs 1.30 for the six months, compared with Rs 0.87 a year earlier; the filing states that EPS is not annualised. Paid-up share capital was Rs 47.86 crore at September 30, 2026, unchanged from March 31, 2026 and above Rs 45.27 crore at September 30, 2025.

Why did Sumit Woods' quarterly results vary?

Sumit Woods recorded revenue from operations of Rs 36.62 crore in the quarter ended September 30, 2026, down from Rs 44.48 crore in the June 2026 quarter but up from Rs 10.92 crore in the September 2025 quarter. Quarterly net profit was Rs 1.90 crore, compared with Rs 4.33 crore in June 2026 and Rs 55.36 lakh a year earlier.

Sumit Woods said it recognises revenue over time under Indian Accounting Standard 115, or Ind AS 115, Revenue from Contracts with Customers. Its percentage-of-completion, or POC, method uses construction costs incurred on each project to determine the extent of performance-obligation completion, connecting revenue recognition to construction progress.

The filing also says the highest revenue is recognised on project completion, when 100% of revenue is booked for apartments sold and agreement-registered after an occupancy certificate has been issued. Sumit Woods separately cited real-estate seasonality as a reason figures can fluctuate between quarters, meaning the Rs 7.86 crore sequential revenue decline is not, by itself, identified as a trend in the filing.

Construction and development expense was Rs 101.62 crore in the first half, up from Rs 21.72 crore a year earlier, while inventory changes were negative Rs 40.17 crore versus positive Rs 4.96 crore. Total expenses increased to Rs 75.91 crore from Rs 49.94 crore, whereas total income increased by Rs 29.12 crore over the same comparison.

What changed in Sumit Woods' balance sheet and cash flow?

Sumit Woods' standalone total assets rose to Rs 348.57 crore at September 30, 2026, from Rs 300.61 crore at March 31, 2026. Inventories increased to Rs 212.96 crore from Rs 172.78 crore, trade receivables rose to Rs 12.47 crore from Rs 5.84 crore, and cash and cash equivalents reached Rs 11.07 crore from Rs 2.96 crore.

The asset increase coincided with higher non-current borrowings, which rose to Rs 110.30 crore from Rs 65.21 crore over the six months. Current borrowings declined to Rs 19.38 crore from Rs 21.28 crore, while total equity increased to Rs 185.61 crore from Rs 180.37 crore and total liabilities rose to Rs 162.96 crore from Rs 120.25 crore.

Operating activities used Rs 35.58 crore of cash in the half year, with a Rs 40.17 crore inventory increase and a Rs 6.63 crore increase in trade receivables among the disclosed working-capital movements. A Rs 4.78 crore increase in trade payables partly offset those movements, while cash generated from operations before income tax was negative Rs 34.58 crore.

Financing activities generated Rs 38.10 crore, including Rs 43.19 crore of net borrowing proceeds, and investing activities generated Rs 5.59 crore. Together, these flows produced a Rs 8.12 crore net cash inflow; Sumit Woods also became a partner in Sumit Borivali Developers LLP on April 10, 2026, with a 99% profit-sharing ratio.

What exceptional items and review findings did Sumit Woods disclose?

Sumit Woods wrote off Rs 49.78 lakh of intangible work in progress after a May 21, 2026 recoverability assessment found that the related project would not be completed and was not expected to generate future economic benefits. The company recognised the amount as an expense under Ind AS 38, Intangible Assets, and Ind AS 36, Impairment of Assets, and said it did not relate to normal operating expenses.

Sumit Woods also disclosed that 175,000 convertible warrants allotted on December 11, 2024 lapsed after their holder did not remit the remaining 75% of the Rs 115 issue price by June 9, 2026. The Rs 30.31 lakh upfront amount was moved from money received against share warrants to capital reserve within other equity, with no effect on profit or loss.

SSRV & Associates issued an unmodified limited-review conclusion on the unaudited standalone results approved by Sumit Woods' board on November 4, 2026. The filing describes the business as primarily real estate, with one geographical segment and no separate reportable business segment under Ind AS 108, Operating Segments.

Conclusion

Sumit Woods delivered a Rs 28.74 crore year-on-year increase in first-half revenue from operations and a Rs 2.28 crore increase in net profit. The period also brought a Rs 40.17 crore inventory build-up, a Rs 35.58 crore operating cash outflow and an increase in non-current borrowings to Rs 110.30 crore.

The next reported period will show how POC accounting, project completion and the stated seasonal pattern affect revenue following the September 2026 quarter. The filing also leaves the balance-sheet effect of the 99% profit-sharing participation in Sumit Borivali Developers LLP, begun on April 10, 2026, as a matter to track alongside inventory and borrowings.