Ushanti Colour Chem reports Rs 1.65 crore first-half profit

Ushanti Colour Chem Limited reported consolidated net profit of Rs 1.65 crore for the six months ended September 30, 2026, compared with a Rs 2.12 crore loss a year earlier, as revenue from operations rose 23% to Rs 67.70 crore. The result includes UC Colours and Intermediates Private Limited, which reported a Rs 2.38 crore loss after tax.

How did Ushanti Colour Chem return to profit in the first half?

Ushanti Colour Chem returned to consolidated net profit of Rs 1.65 crore in the six months ended September 30, 2026, from a Rs 2.12 crore net loss in the corresponding period of 2025. Profit before tax was Rs 2.10 crore, compared with a Rs 3.79 crore pre-tax loss a year earlier, while the statement reported no exceptional or extraordinary items in either half.

Profit from continuing operations before the minority-interest line was Rs 48.87 lakh, compared with a Rs 4.42 crore loss in the prior-year half. The consolidated statement then recorded a Rs 1.16 crore loss under minority interest for September 2026, versus a Rs 2.30 crore loss a year earlier, resulting in the reported Rs 1.65 crore net-profit figure. Basic and diluted earnings per equity share were Rs 1.19, compared with a loss of Rs 1.88 per share.

What caused Ushanti Colour Chem’s revenue and profit change?

Ushanti Colour Chem’s revenue from operations increased by Rs 12.63 crore to Rs 67.70 crore in the September 2026 half from Rs 55.07 crore a year earlier. Other income rose to Rs 93.70 lakh from Rs 87.31 lakh, taking total revenue to Rs 68.63 crore, compared with Rs 55.94 crore in the September 2025 half.

The largest reported expense lines in the latest half were Rs 44.49 crore of material costs, Rs 12.53 crore of purchases of stock-in-trade and Rs 8.18 crore of manufacturing expenses. The statement also showed a Rs 6.07 crore change in inventories of finished goods and work in progress, compared with a Rs 17.95 crore change in the prior-year half. These movements contributed to total expenses rising by Rs 6.81 crore, less than the Rs 12.69 crore increase in total revenue.

Employee benefits expense increased to Rs 2.11 crore from Rs 2.06 crore. Finance costs declined to Rs 1.88 crore from Rs 2.24 crore and depreciation and amortisation fell to Rs 1.71 crore from Rs 2.02 crore, while other expenses rose to Rs 1.70 crore from Rs 1.23 crore. The shift from a Rs 3.79 crore pre-tax loss to Rs 2.10 crore of pre-tax profit therefore coincided with revenue growth and lower finance and depreciation charges.

How did UC Colours and Intermediates affect Ushanti Colour Chem’s results?

Ushanti Colour Chem’s sole subsidiary, UC Colours and Intermediates Private Limited, reported a Rs 2.38 crore loss after tax for April 1, 2026 to September 30, 2026. The auditor’s limited-review report said the subsidiary generated Rs 25.18 crore of total revenue and had Rs 86.05 crore of total assets at September 30, 2026.

Despite the subsidiary’s reported loss, Ushanti Colour Chem recorded consolidated net profit of Rs 1.65 crore. The group statement includes a Rs 1.16 crore loss under minority interest after recording Rs 48.87 lakh of profit from continuing operations. The filing does not provide a separate operating explanation for the subsidiary’s loss or a segment-level split because it says Accounting Standard 17, Segment Reporting, does not apply to the company’s single business segment.

The auditor reviewed the interim financial information of the one subsidiary and said its conclusion on the consolidated statement, in so far as it related to the subsidiary, was based solely on unaudited interim statements, financial information and results certified by management. The auditor’s conclusion was not modified and stated that nothing had come to its attention indicating that the consolidated statement contained a material misstatement under Regulation 33 of the Listing Obligations and Disclosure Requirements regulations.

What changed in Ushanti Colour Chem’s balance sheet and cash flow?

Ushanti Colour Chem’s consolidated total assets were Rs 135.32 crore at September 30, 2026, down from Rs 139.98 crore at March 31, 2026. Current assets rose to Rs 67.77 crore from Rs 62.99 crore as inventories increased to Rs 18.48 crore from Rs 10.87 crore, while trade receivables declined to Rs 26.98 crore from Rs 30.17 crore.

Shareholders’ funds increased to Rs 50.41 crore at September 30 from Rs 49.92 crore at the March year-end. Non-current liabilities declined to Rs 22.51 crore from Rs 28.90 crore, and current liabilities fell to Rs 56.01 crore from Rs 67.55 crore. Short-term borrowings, however, rose to Rs 11.86 crore from Rs 9.04 crore over the same period.

The consolidated cash-flow statement showed Rs 1.69 crore of net cash used in operating activities during the September 2026 half, Rs 1.73 crore used in investing activities and Rs 3.75 crore used in financing activities. Its operating cash outflow included a Rs 7.61 crore increase in inventories and a Rs 4.51 crore outflow relating to trade payables, provisions and other liabilities. The cash-flow statement reported a net decrease of Rs 7.17 crore in cash and cash equivalents for the half.

How did Ushanti Colour Chem use preferential-issue proceeds?

Ushanti Colour Chem fully utilised Rs 15.37 crore raised through a preferential issue on February 12, 2026, according to the auditor’s utilisation certificate dated November 5, 2026. The certificate stated that there was no deviation or variation from the objects disclosed in the company’s offer document.

Of the total, Rs 6.84 crore was used for investment or advances to the subsidiary, Rs 4.78 crore for working-capital requirements and Rs 3.75 crore for general corporate purposes. The certificate recorded Rs 3.46 lakh of issue-related expenses, said no monitoring agency was applicable, and reported no comments from the audit committee or auditors regarding use of the proceeds.

The Rs 6.84 crore subsidiary allocation was fully utilised even as UC Colours and Intermediates reported Rs 25.18 crore in revenue and a Rs 2.38 crore loss after tax for the September 2026 half. The filing does not state how the subsidiary investment or advance was deployed beyond the disclosed object, nor does it set a financial target for that subsidiary.

Conclusion

Ushanti Colour Chem’s September 2026 first-half filing shows a move from a Rs 2.12 crore consolidated loss to Rs 1.65 crore net profit. Revenue from operations increased to Rs 67.70 crore, while total expenses reached Rs 66.54 crore, producing Rs 2.10 crore of pre-tax profit despite the Rs 2.38 crore loss reported by its sole subsidiary.

The next disclosures will show whether revenue growth, inventory levels of Rs 18.48 crore and operating cash generation change after the first half, while the subsidiary’s financial performance remains unresolved in the filing. Investors should also watch the company’s regulatory steps after DJNV & Co. resigned as statutory auditor effective at the close of business on November 5, 2026, citing its planned dissolution.