Touchwood first-half revenue falls 38% to Rs 14.02 crore

Touchwood Entertainment Limited reported consolidated revenue from operations of Rs 14.02 crore for the half year ended 30 September 2026, 38% below Rs 22.53 crore a year earlier, while profit after tax fell to Rs 1.13 crore from Rs 1.62 crore. Touchwood operated only in event-management services during the period.

What were Touchwood's first-half financial results?

Touchwood's first-half revenue from operations declined to Rs 14.02 crore from Rs 22.53 crore in the half year ended 30 September 2025, a fall of 37.8% based on the reported figures. Other income decreased to Rs 20.40 lakh from Rs 29.14 lakh, bringing total income down to Rs 14.22 crore from Rs 22.83 crore.

Total expenses fell to Rs 12.61 crore in the half year ended 30 September 2026 from Rs 20.64 crore a year earlier. Profit before tax decreased to Rs 1.61 crore from Rs 2.18 crore, while profit after tax declined to Rs 1.13 crore from Rs 1.62 crore after tax expense of Rs 48.73 lakh, compared with Rs 57.47 lakh in the prior-year period.

The decline in expenses was led by other expenses, which fell to Rs 9.60 crore from Rs 18.04 crore in the corresponding half year. Employee-benefit expense moved higher to Rs 2.23 crore from Rs 1.97 crore, while finance cost increased to Rs 17.82 lakh from Rs 15.01 lakh.

Did Touchwood's September quarter improve from June?

Touchwood's September 2026 quarter improved from the June 2026 quarter, with revenue from operations rising to Rs 10.06 crore from Rs 3.96 crore. Profit before tax rose to Rs 1.11 crore from Rs 50.05 lakh, and profit after tax increased to Rs 75.41 lakh from Rs 37.30 lakh.

The September quarter also exceeded the prior-year September quarter on revenue and profit. Revenue of Rs 10.06 crore was 78.5% above Rs 5.63 crore in the quarter ended 30 September 2025, while profit after tax of Rs 75.41 lakh was more than double Rs 37.20 lakh a year earlier.

The September quarter accounted for about 72% of Touchwood's Rs 14.02 crore first-half revenue, indicating that the June quarter's Rs 3.96 crore revenue was the principal reason the half-year result remained below the prior-year Rs 22.53 crore. September-quarter total expenses were Rs 9.02 crore, compared with Rs 3.59 crore in June and Rs 5.25 crore a year earlier.

Other expenses increased to Rs 7.46 crore in the September quarter from Rs 2.14 crore in the June quarter, broadly following the increase in quarterly revenue. Employee-benefit expense was Rs 1.14 crore in September, compared with Rs 1.09 crore in June, and finance cost rose to Rs 12.10 lakh from Rs 5.71 lakh.

Which business generated Touchwood's revenue?

Touchwood generated all Rs 14.02 crore of first-half consolidated revenue from event-management services in the half year ended 30 September 2026. The company said it conducted no business in trading activities or construction services during the period.

Event-management services also supplied all quarterly revenue disclosed in the segment statement: Rs 10.06 crore in the September 2026 quarter and Rs 3.96 crore in the June 2026 quarter. The corresponding September 2025 quarter recorded Rs 5.63 crore, while the first half of that year generated Rs 22.53 crore.

The single-segment disclosure means there was no revenue from trading or construction services to offset the lower first-half event-management revenue. Touchwood's first-half profit before tax of Rs 1.61 crore was therefore reported alongside a revenue base that was Rs 8.52 crore lower year on year.

What changed in Touchwood's assets, cash and subsidiary funding?

Touchwood's total consolidated assets increased to Rs 63.57 crore at 30 September 2026 from Rs 57.43 crore at 31 March 2026. Total equity rose to Rs 45.87 crore from Rs 44.74 crore, while non-current financial assets classified as loans increased to Rs 12.64 crore from Rs 11.47 lakh.

Cash and cash equivalents declined to Rs 2.49 crore at 30 September 2026 from Rs 17.11 crore at 31 March 2026. The half-year cash-flow statement recorded net cash used in operating activities of Rs 13.07 crore and net cash used in investing activities of Rs 4.68 crore, partly offset by Rs 3.13 crore of net cash from financing activities.

During the previous reporting period, Touchwood incorporated a Delhi subsidiary in which it holds 70% equity for real-estate and related businesses. The company said it advanced a loan to the subsidiary, which paid a substantial earnest money deposit to Delhi Metro Rail Corporation for a plot intended for a commercial project in Delhi.

A related-party disclosure records Rs 1.79 crore of loans and advances to Touchtown Ventures Private Limited, classified as an unsecured security deposit at 30 September 2026. The disclosure does not state the loan's interest rate or tenure, saying those terms are as per the agreement.

What did the auditor say about Touchwood's results?

Touchwood's audit committee and board approved the unaudited consolidated results for the quarter and half year ended 30 September 2026 on 13 November 2026. VSD & Associates issued a limited-review conclusion stating that nothing had come to its attention to suggest the results were materially misstated or failed to make required disclosures.

The auditor said it did not review interim financial information for two subsidiaries, relying instead on reports from other auditors and management-provided information. Those subsidiaries recorded nil revenue and a loss after tax of Rs 4.63 lakh for the half year ended 30 September 2026, according to the limited-review report.

The review was conducted under Standard on Review Engagements 2410, which the auditor said provides moderate assurance and is more limited than an audit. Touchwood's consolidated results include MakeMeUp Private Limited, WedAdvisor Solutions Private Limited and Touchtown Ventures Private Limited.

Conclusion

Touchwood's stronger September 2026 quarter did not offset the lower June-quarter revenue, leaving first-half revenue down Rs 8.52 crore year on year and profit after tax lower by Rs 49.28 lakh. With event-management services producing all Rs 14.02 crore of revenue, the reported contraction was concentrated in the group's only operating segment.

The next results will show whether the September-quarter revenue level of Rs 10.06 crore can be sustained after the weaker Rs 3.96 crore June quarter. Investors can also watch the development of the Rs 12.64 crore non-current loan balance and the 70%-owned Delhi subsidiary's planned commercial project following its Delhi Metro Rail Corporation earnest money deposit.