Unjha Formulations H1 profit falls 45% to Rs 66.70 lakh

Unjha Formulations Limited (Unjha Formulations) reported unaudited profit of Rs 66.70 lakh for the half year ended September 30, 2026, down 45% from Rs 120.78 lakh a year earlier, as total income declined and expenditure increased, despite profit rebounding sequentially to Rs 51.01 lakh in the September quarter.

Why did Unjha Formulations' first-half profit decline?

Unjha Formulations' first-half profit declined because total income from operations fell to Rs 7.71 crore from Rs 7.98 crore while total expenditure rose to Rs 7.05 crore from Rs 6.77 crore in the half year ended September 30, 2026. Profit before tax and profit for the period were both Rs 66.70 lakh because the company reported no current or deferred tax charge.

Net sales or income from operations, net of goods and services tax and including excise as stated in the filing, fell to Rs 7.67 crore from Rs 7.90 crore. Other operating income declined to Rs 4.58 lakh from Rs 8.21 lakh. The reported profit decrease of Rs 54.08 lakh reflected both lower income and a higher cost base.

Cost of materials consumed increased by Rs 50.60 lakh to Rs 5.99 crore, while employee benefit expense rose to Rs 37.50 lakh from Rs 28.19 lakh. Depreciation and amortisation increased to Rs 7.37 lakh from Rs 5.71 lakh. These movements outweighed a decline in other expenses to Rs 61.97 lakh from Rs 94.96 lakh and an Rs 1.18 lakh credit from changes in inventories, against no such credit in the comparable half year.

How did Unjha Formulations perform in the September quarter?

Unjha Formulations' September-quarter profit rose sequentially to Rs 51.01 lakh from Rs 15.69 lakh in the quarter ended June 30, 2026. Total income increased to Rs 4.41 crore from Rs 3.31 crore, while total expenditure rose to Rs 3.90 crore from Rs 3.15 crore.

The September recovery did not match the prior-year quarter. Profit for the quarter ended September 30, 2026 was below Rs 81.78 lakh reported for September 30, 2025, although total income rose to Rs 4.41 crore from Rs 4.35 crore. Expenditure increased to Rs 3.90 crore from Rs 3.53 crore year on year.

Changes in inventories were an Rs 55.45 lakh expense in the September 2026 quarter, compared with nil in the September 2025 quarter. Material consumption was broadly unchanged at Rs 2.79 crore versus Rs 2.79 crore, while employee benefit expense increased to Rs 16.60 lakh from Rs 14.71 lakh. Other expenses declined to Rs 34.77 lakh from Rs 56.50 lakh, and depreciation rose to Rs 3.63 lakh from Rs 2.84 lakh.

Basic and diluted earnings per share were Rs 1.14 in the September 2026 quarter, compared with Rs 0.35 in the June quarter and Rs 1.83 a year earlier. First-half basic and diluted earnings per share were Rs 1.49, down from Rs 2.70. Paid-up equity share capital remained Rs 4.48 crore, with a face value of Rs 10 per share.

What do Unjha Formulations' balance sheet and cash flow show?

Unjha Formulations reported total assets of Rs 6.29 crore at September 30, 2026, compared with Rs 5.51 crore at March 31, 2026. Current assets increased to Rs 5.00 crore from Rs 4.21 crore, while non-current assets were Rs 1.30 crore compared with Rs 1.30 crore at the year-end.

The current-asset increase included Rs 1.50 crore of investments at September 30, 2026, against nil at March 31, 2026. Inventories rose to Rs 1.14 crore from Rs 63.08 lakh, trade receivables increased to Rs 1.48 crore from Rs 1.35 crore, and other current assets reached Rs 72.27 lakh from Rs 58.82 lakh.

Cash and cash equivalents stood at Rs 15.43 lakh at September 30, 2026, down from Rs 1.64 crore at March 31, 2026. Net cash from operating activities was Rs 8.28 lakh in the first half, compared with Rs 1.04 crore in the prior-year half. The cash-flow statement recorded Rs 51.04 lakh of inventory-related cash use and Rs 13.07 lakh of cash use from trade receivables, partly offset by Rs 12.81 lakh from trade payables.

Investing activities used Rs 1.57 crore in the first half, including Rs 1.50 crore for investment in fixed deposits and Rs 7.11 lakh for purchases of property, plant and equipment. Trade payables increased to Rs 1.44 crore from Rs 1.31 crore, while total current liabilities rose to Rs 1.78 crore from Rs 1.67 crore.

What did Unjha Formulations' Board and auditor report?

Unjha Formulations' Board approved the unaudited standalone results, assets and liabilities statement, and cash-flow statement on November 5, 2026. The company said the Board meeting began at 13:45 and concluded at 15:15 on that date, and that it operates in one business segment.

Jain & Golechha Chartered Accountants issued a limited review report dated November 5, 2026. The auditors said nothing had come to their attention that caused them to believe the results failed to make required disclosures or contained a material misstatement. They also stated that a review gives moderate assurance and does not constitute an audit opinion.

The filing reported no pending investor complaints at either the beginning or end of the quarter. Finance cost for the first half was Rs 22,000, compared with Rs 33,000 a year earlier, and the September 30, 2026 balance sheet did not report borrowings under current or non-current liabilities.

Conclusion

Unjha Formulations' results show a sharp sequential improvement in the September quarter but a weaker first-half outcome compared with a year earlier. Lower first-half income and higher material, employee and depreciation costs reduced profit to Rs 66.70 lakh, while working-capital movements and fixed-deposit investment reduced the reported cash balance to Rs 15.43 lakh.

The filing did not disclose a profit target, operating guidance or a date for the next financial update. Investors will therefore need to watch subsequent company disclosures for changes in sales, inventory of Rs 1.14 crore, the Rs 1.50 crore fixed-deposit investment and operating cash generation of Rs 8.28 lakh.