United Van Der Horst profit falls 37% on rising costs

United Van Der Horst Limited reported standalone profit of Rs 1.264 crore for the quarter ended 30-Sep-26, down 37% from Rs 1.9953 crore a year earlier, although revenue from operations rose 16% to Rs 10.0132 crore. Higher materials, other expenses and finance costs, alongside a smaller inventory-related cost offset, reduced profit.

Why did United Van Der Horst’s September-quarter profit fall?

United Van Der Horst’s September-quarter profit fell because total expenses rose 43% year on year to Rs 8.5402 crore, faster than the 15% increase in total income to Rs 10.1055 crore. Profit before tax declined 45% to Rs 1.5653 crore from Rs 2.8436 crore in the quarter ended 30-Sep-25, and neither period included exceptional items.

Cost of materials consumed increased 30% to Rs 4.4186 crore from Rs 3.4049 crore, while other expenses rose 27% to Rs 2.3591 crore from Rs 1.8605 crore. Finance costs increased 36% to Rs 77.80 lakh from Rs 57.25 lakh. Together, these three expense lines rose by Rs 1.7178 crore, exceeding the Rs 1.3674 crore increase in revenue from operations.

The inventory movement also provided a smaller offset to costs than a year earlier. United Van Der Horst reported changes in inventories of work-in-progress of negative Rs 22.79 lakh in the September 2026 quarter, compared with negative Rs 97.76 lakh a year earlier, reducing the offset by Rs 74.97 lakh.

How did United Van Der Horst’s revenue mix change?

United Van Der Horst’s job work and reconditioning segment produced the quarterly revenue increase, with revenue rising 26% year on year to Rs 6.7902 crore in the quarter ended 30-Sep-26. The segment accounted for about 68% of total revenue from operations of Rs 10.0132 crore, compared with Rs 5.3732 crore in the year-earlier quarter.

Manufacturing revenue declined 2% to Rs 3.2230 crore from Rs 3.2726 crore. Sequentially, job work and reconditioning increased from Rs 5.2983 crore in the quarter ended 30-Jun-26, while manufacturing fell from Rs 3.8519 crore. Therefore, the September-quarter sales increase came from job work and reconditioning rather than manufacturing.

United Van Der Horst did not allocate profitability to the two operating segments because expenses, assets and liabilities are used interchangeably, according to the filing. Segment profit before tax and interest was reported as unallocated profit of Rs 2.2510 crore for the September quarter, down from Rs 3.2379 crore a year earlier.

For the half year ended 30-Sep-26, job work and reconditioning revenue rose 12% to Rs 12.0885 crore, while manufacturing revenue increased 1% to Rs 7.0749 crore. Total first-half revenue increased 8% to Rs 19.1634 crore from Rs 17.7389 crore, below the September quarter’s 16% year-on-year rate.

What happened to United Van Der Horst’s first-half earnings?

United Van Der Horst’s standalone profit for the half year ended 30-Sep-26 declined 41% to Rs 2.3882 crore from Rs 4.0362 crore in the prior-year half, despite an 8% increase in revenue from operations to Rs 19.1634 crore. Profit before tax declined 49% to Rs 3.0932 crore from Rs 6.0332 crore over the same periods.

First-half material costs rose 16% to Rs 7.9694 crore, employee benefits expense increased 15% to Rs 92.53 lakh, finance costs rose 23% to Rs 1.4136 crore and other expenses increased 41% to Rs 4.5457 crore. Changes in inventories of work-in-progress were negative Rs 8.03 lakh, compared with negative Rs 1.4223 crore in the prior-year half, reducing the cost offset by Rs 1.3420 crore.

Basic and diluted earnings per share were Rs 0.35 for the half year, compared with Rs 0.59 a year earlier. United Van Der Horst said the quarterly and half-year earnings per share were not annualised, and it restated comparative per-share figures after the five-for-one share split effective 22-Jan-26 increased paid-up shares from 1,37,90,000 to 6,89,50,000.

What do United Van Der Horst’s balance sheet and cash flows show?

United Van Der Horst’s total assets were Rs 126.6787 crore at 30-Sep-26, compared with Rs 101.5220 crore at 31-Mar-26. Capital work-in-progress rose to Rs 21.9743 crore from Rs 19.07 lakh, while property, plant and equipment increased to Rs 69.3922 crore from Rs 68.7038 crore.

The company reported purchases of property, plant, equipment and capital work-in-progress of Rs 23.9501 crore in the half year ended 30-Sep-26, compared with Rs 4.3130 crore in the full year ended 31-Mar-26. Net cash used in investing activities was Rs 23.6864 crore, while net loans taken were Rs 19.6341 crore and net financing cash generated was Rs 18.5307 crore.

Cash and cash equivalents fell to Rs 36.34 lakh at 30-Sep-26 from Rs 1.0571 crore at the start of the financial year. Non-current borrowings rose to Rs 19.9427 crore from Rs 13.5964 crore and current borrowings increased to Rs 32.4052 crore from Rs 19.1174 crore; trade receivables also increased to Rs 19.5997 crore from Rs 14.5596 crore.

Net cash generated from operating activities was Rs 4.4620 crore in the first half. The cash-flow statement recorded a Rs 5.1850 crore increase in sundry debtors and a Rs 60.98 lakh increase in inventories, partly offset by a Rs 2.0739 crore reduction in other current assets and a Rs 2.5281 crore increase in current liabilities.

What unresolved matters and capital plans did United Van Der Horst disclose?

United Van Der Horst said Rs 37.92 lakh remained unpaid at 30-Sep-26 from a Rs 75.84 lakh Panvel Municipal Corporation property-tax demand recognised in other expenses during financial year 2024-25. The balance remains subject to the final outcome of legal proceedings challenging the levy and computation of property tax on industrial establishments in the Taloja area.

The company said it paid 50% of the demand during financial year 2024-25 and is monitoring the court matter with relevant authorities and legal advisers. It said the final liability, if any, will be determined by the court proceedings, a matter disclosed in the results approved by the board on 06-Nov-26.

Separately, the board proposed increasing authorised share capital to Rs 8 crore from Rs 7 crore, subject to shareholder approval through a postal ballot. The board also proposed a preferential issue of up to 62.50 lakh equity shares to identified promoters and non-promoters, subject to shareholder, statutory and regulatory approvals; the filing did not specify an issue price, proceeds or use of funds.

Conclusion

United Van Der Horst increased September-quarter revenue, led by job work and reconditioning, but this did not result in higher profit. Materials, other expenses and finance costs increased, while the work-in-progress inventory movement gave a smaller cost offset than in the prior-year quarter, resulting in a 37% fall in standalone profit to Rs 1.264 crore.

The next disclosures to watch are the terms and outcome of the proposed preferential issue, including the issue price and proceeds if approved, and progress in capital work-in-progress after Rs 23.9501 crore of first-half investment. The remaining Rs 37.92 lakh property-tax demand will also depend on the outcome of the ongoing court proceedings.