Swasth Foodtech returns to H1 profit as revenue falls in September

Swasth Foodtech India Limited reported a Rs 7.27 lakh profit for the half year ended September 30, 2026, compared with a Rs 2.61 crore loss a year earlier, as total expenses fell below revenue despite a 4.29% decline in revenue from operations to Rs 95.45 crore. The company also reported Rs 1.45 crore of operating cash outflow.

Why did Swasth Foodtech return to profit in the September half year?

Swasth Foodtech returned to profit because total expenses of Rs 95.42 crore were marginally below total revenue of Rs 95.51 crore in the half year ended September 30, 2026. That produced profit before tax of Rs 8.82 lakh, compared with a loss before tax of Rs 3.15 crore in the corresponding half year ended September 30, 2025. A deferred-tax charge of Rs 1.55 lakh reduced the reported profit to Rs 7.27 lakh.

The September 2026 result was also below the immediately preceding half year ended March 31, 2026, when Swasth Foodtech reported Rs 1.22 crore of profit after tax and Rs 1.49 crore of profit before tax. Revenue from operations in that March 2026 half year was Rs 111.01 crore, compared with Rs 95.45 crore in the latest period. The filing therefore shows a move from a year-earlier loss to profit, but a lower profit than in the preceding six months.

The reported basic and diluted earnings per share were 12 paise for the September 2026 half year, against a loss per share of Rs 4.46 in the September 2025 half year. Earnings per share were Rs 2.08 for the March 2026 half year. Swasth Foodtech states that its half-yearly earnings per share are not annualised.

How did Swasth Foodtech’s revenue and costs change?

Swasth Foodtech’s revenue from operations fell to Rs 95.45 crore in the half year ended September 30, 2026 from Rs 99.73 crore a year earlier, a decline of 4.29% based on the reported figures. Other income declined to Rs 5.94 lakh from Rs 17.54 lakh, taking total revenue to Rs 95.51 crore from Rs 99.91 crore in the corresponding prior-year period.

Material consumption was Rs 92.59 crore in the September 2026 half year, while purchases of traded goods were Rs 4.30 crore. Changes in finished goods, work in progress and stock in trade reduced expenses by Rs 4.43 crore, compared with a Rs 3.73 crore reduction in the September 2025 half year. The combination of these line items and other costs brought total expenses down by Rs 7.64 crore year on year.

Employee-benefit expense rose to Rs 41.99 lakh from Rs 26.38 lakh a year earlier, while depreciation and amortisation increased to Rs 39.46 lakh from Rs 36.73 lakh. Finance costs fell to Rs 85.66 lakh from Rs 1.12 crore in the September 2025 half year, although they were above Rs 64.25 lakh in the March 2026 half year. Other expenses declined to Rs 1.29 crore from Rs 1.65 crore a year earlier.

Why was Swasth Foodtech’s operating cash flow negative?

Swasth Foodtech used Rs 1.45 crore in operating activities during the half year ended September 30, 2026 despite reporting Rs 8.82 lakh of pre-tax profit. The cash-flow statement records Rs 1.30 crore of operating profit before working-capital changes, but these changes turned cash generation from operations into an outflow of Rs 1.38 crore. Taxes paid of Rs 6.62 lakh resulted in the final operating-cash outflow.

The largest reported working-capital movement was a Rs 6.47 crore decrease in trade payables. This was partly offset by a Rs 1.68 crore reduction in trade receivables, a Rs 1.05 crore reduction in short-term loans and advances, and an Rs 89.05 lakh reduction in inventories. For comparison, operating activities generated Rs 27.45 lakh of cash in the full year ended March 31, 2026.

Investing activities used Rs 57.12 lakh during the September 2026 half year, including Rs 58.38 lakh spent on property, plant and equipment. Financing activities generated Rs 2.21 crore, reflecting a Rs 92.83 lakh increase in short-term borrowings and a Rs 2.14 crore increase in long-term borrowings, partly offset by Rs 85.10 lakh of finance costs. Cash and cash equivalents consequently increased to Rs 1.54 crore at September 30, 2026 from Rs 1.35 crore at March 31, 2026.

How did Swasth Foodtech’s borrowings and working capital change?

Swasth Foodtech’s total borrowings rose to Rs 22.92 crore at September 30, 2026 from Rs 19.86 crore at March 31, 2026. Long-term borrowings increased to Rs 3.67 crore from Rs 1.53 crore, while short-term borrowings rose to Rs 19.25 crore from Rs 18.32 crore. The Rs 3.06 crore increase in total borrowings corresponds with the financing cash inflow reported for the half year.

Trade payables declined across both disclosed creditor categories. Amounts due to micro and small enterprises fell to Rs 1.39 crore from Rs 5.56 crore, while dues to other creditors declined to Rs 2.10 crore from Rs 4.40 crore. Other current liabilities increased to Rs 59.34 lakh from Rs 44.26 lakh over the same period.

Inventories decreased to Rs 29.72 crore at September 30, 2026 from Rs 30.61 crore at March 31, 2026, and trade receivables declined to Rs 2.27 crore from Rs 3.95 crore. Property, plant and equipment fell to Rs 11.01 crore from Rs 11.40 crore, while capital work in progress rose to Rs 60.88 lakh from Rs 2.72 lakh. Total assets were Rs 47.89 crore, compared with Rs 51.06 crore six months earlier.

What is Swasth Foodtech’s remaining IPO fund utilisation plan?

Swasth Foodtech had utilised Rs 13.43 crore of the Rs 14.92 crore raised through its initial public offering, or IPO, by September 30, 2026. The IPO involved 15,87,600 equity shares issued at Rs 94 each and the company listed on the BSE platform on February 28, 2025. The filing reports Rs 1.49 crore of proceeds remained unutilised at the September 2026 reporting date.

Of the remaining balance, Rs 1.24 crore was allocated to setting up a packing line at the existing manufacturing unit and Rs 25.37 lakh was allocated to issue-related expenses. The utilisation certificate says management expects the remaining Rs 1.24 crore for the packing line to be used in future years. The Rs 7.50 crore working-capital allocation and Rs 2.20 crore general corporate-purpose allocation had both been fully utilised by September 30, 2026.

Conclusion

Swasth Foodtech’s September 2026 half-year results show a return to profit after the Rs 2.61 crore loss recorded a year earlier, with total expenses declining more than total revenue. However, the Rs 7.27 lakh profit was lower than the Rs 1.22 crore reported in the March 2026 half year, while operating activities used Rs 1.45 crore of cash and total borrowings rose to Rs 22.92 crore.

The next disclosed item to watch is the use of Rs 1.24 crore of unutilised IPO proceeds assigned to a packing line at Swasth Foodtech’s existing manufacturing unit. Management states that this balance will be utilised in future years, while subsequent results will show whether operating cash flow changes after the September 2026 working-capital movements.