Superhouse reports Rs 5.04 crore loss at six subsidiaries

Superhouse Limited disclosed that six subsidiaries whose interim results were not reviewed recorded a combined net loss after tax of Rs 5.04 crore in the half year ended September 30, 2026, before consolidation eliminations. Management told the auditor the results were not material to the Group, and the review conclusion was not modified.

What did the six unreviewed subsidiaries report?

The six unreviewed subsidiaries reported a combined net loss after tax of Rs 5.04 crore for the period from April 1, 2026 to September 30, 2026. Their loss for the quarter ended September 30, 2026 was Rs 2.00 crore, with both figures stated before consolidation eliminations.

The subsidiaries recorded revenue of Rs 51.52 crore in the first half and Rs 26.34 crore in the September 2026 quarter. They also reported total comprehensive losses of Rs 5.00 crore for the half year and Rs 1.91 crore for the quarter. Total comprehensive income includes profit or loss and items recognised in other comprehensive income.

The half-year loss includes the April to June 2026 period as well as the September quarter, so it cannot by itself show how the six subsidiaries performed in the June quarter. The auditor did not provide entity-level revenue or profit figures for these six subsidiaries, although the report listed nine subsidiaries in Superhouse's consolidated group structure.

How large were the six subsidiaries in Superhouse's disclosure?

The six subsidiaries had combined total assets of Rs 192.26 crore as at September 30, 2026. Their Rs 51.52 crore first-half revenue and Rs 5.04 crore loss were both presented before consolidation eliminations, which remove the effect of transactions and balances within a consolidated group.

Superhouse reported consolidated total income of Rs 367.84 crore for the half year ended September 30, 2026, comprising Rs 362.31 crore of revenue from operations and Rs 5.52 crore of other income. The separate disclosure of Rs 51.52 crore revenue for the six subsidiaries does not establish their contribution to the final consolidated revenue because it is before eliminations.

Consolidated profit before tax was Rs 14.11 crore in the six months to September 30, 2026, compared with Rs 5.49 crore in the corresponding period a year earlier. That group-level measure is not directly comparable with the six subsidiaries' Rs 5.04 crore net loss after tax because the measures use different profit levels and the subsidiary figure is before eliminations.

The consolidated segment statement showed Rs 322.26 crore of first-half revenue from leather and leather products and Rs 45.57 crore from textile products. It did not allocate the six subsidiaries' revenue, assets or loss between those two segments.

Why did the auditor not review the six subsidiaries?

The auditor said the consolidated unaudited results included interim financial results of six subsidiaries that had not been reviewed. According to the report, management informed Kapoor Tandon & Co. that the results of these subsidiaries were not material to the Group.

Kapoor Tandon & Co. did not modify its conclusion in respect of the six subsidiaries. The report, dated November 14, 2026, nevertheless specifically identified the unreviewed results and the management representation on materiality for the half year ended September 30, 2026.

A review under Standard on Review Engagements 2410 involves inquiries of personnel and analytical and other review procedures, according to the auditor. The firm said such a review is substantially narrower than an audit under Standards on Auditing and does not result in an audit opinion on the September 2026 interim results.

The report separately referred to one subsidiary whose results were supported by reports of other auditors, rather than being one of the six unreviewed entities. That subsidiary had assets of Rs 18.83 crore at September 30, 2026, first-half revenue of Rs 4.96 crore and first-half net profit after tax of Rs 85.37 lakh.

What do Superhouse's consolidated results show alongside this disclosure?

Superhouse's consolidated total income rose by Rs 8.02 crore to Rs 367.84 crore in the half year ended September 30, 2026 from Rs 359.82 crore a year earlier. Consolidated profit before tax increased by Rs 8.62 crore to Rs 14.11 crore, while finance cost declined to Rs 8.24 crore from Rs 11.49 crore.

For the quarter ended September 30, 2026, Superhouse reported total income of Rs 201.78 crore, compared with Rs 166.06 crore in the quarter ended June 30, 2026 and Rs 193.02 crore in the quarter ended September 30, 2025. Profit before tax was Rs 9.07 crore in the September 2026 quarter, against Rs 5.04 crore in the preceding quarter and Rs 4.99 crore a year earlier.

Leather and leather products generated Rs 322.26 crore of first-half segment revenue, up from Rs 317.13 crore in the half year ended September 30, 2025. Textile products generated Rs 45.57 crore, compared with Rs 42.68 crore a year earlier, while segment profit before finance cost and tax was Rs 21.28 crore for leather and leather products and Rs 1.06 crore for textiles.

The auditor said nothing had come to its attention that caused it to believe the consolidated statement for the period ended September 30, 2026 failed to make disclosures required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Its conclusion was not modified for either the six unreviewed subsidiaries or the separate subsidiary covered by other auditors' reports.

Conclusion

Superhouse reported higher consolidated first-half income and profit before tax for the period ended September 30, 2026, while six subsidiaries not reviewed by the auditor recorded a combined Rs 5.04 crore net loss after tax. The six entities also reported Rs 51.52 crore of revenue and Rs 192.26 crore of assets before consolidation eliminations.

The unresolved point is management's assessment that the six subsidiaries' results were not material to the Group. Future disclosures can show whether Superhouse provides entity-level information, whether the subsidiaries' revenue and losses change after the September 2026 half year, and whether management retains that materiality assessment.