Visaka September profit hits Rs 71.30 crore on HCA award

Visaka Industries Limited reported consolidated net profit of Rs 71.30 crore for the quarter ended September 30, 2026, after recognising a Rs 68.73 crore Hyderabad Cricket Association court award as an exceptional item. Profit before exceptional items and tax was Rs 17.10 crore, compared with Rs 70.62 crore in the preceding quarter.

Why did Visaka report Rs 71.30 crore quarterly profit?

Visaka reported Rs 71.30 crore of consolidated profit after tax because it booked Rs 68.73 crore received under a favourable court order against the Hyderabad Cricket Association, or HCA, as an exceptional item in the quarter ended September 30, 2026. The filing describes the payment as arising from a long-standing contractual dispute and records it outside profit before exceptional items and tax.

The exceptional item lifted profit before tax to Rs 85.83 crore from Rs 17.10 crore before exceptional items and tax in the September 2026 quarter. Current tax was Rs 15.20 crore, while deferred tax was a credit of Rs 67.77 lakh, resulting in reported net profit of Rs 71.30 crore. The award was close to the full reported quarterly profit after tax, based on the disclosed figures.

Visaka’s reported net profit compares with Rs 52.68 crore in the quarter ended June 30, 2026, when no exceptional item was reported, and a Rs 8.72 crore loss in the quarter ended September 30, 2025. Profit before exceptional items and tax improved from the year-earlier loss of Rs 11.29 crore but fell from Rs 70.62 crore in June 2026. The HCA receipt was the reason reported September profit exceeded the June-quarter result.

How did Visaka’s operating performance change in September?

Visaka’s revenue from operations was Rs 399.24 crore in the quarter ended September 30, 2026, down from Rs 590.07 crore in the June 2026 quarter but up from Rs 325.03 crore a year earlier. Other income was Rs 1.63 crore, taking total income to Rs 400.87 crore. Total expenses were Rs 383.78 crore, leaving Rs 17.10 crore of profit before exceptional items and tax.

Inventory changes were a negative Rs 58.57 crore in September 2026, compared with a Rs 43.02 crore expense in June 2026 and a negative Rs 4.12 crore a year earlier. Finance costs declined to Rs 5.28 crore from Rs 5.82 crore in June 2026 and Rs 8.08 crore in September 2025. Employee-benefit expense was Rs 40.99 crore, while depreciation and amortisation was Rs 16.77 crore.

For the half year ended September 30, 2026, revenue from operations rose to Rs 989.31 crore from Rs 830.55 crore in the corresponding 2025 period. Profit before exceptional items and tax increased to Rs 87.72 crore from Rs 16.44 crore. Including the Rs 68.73 crore HCA exceptional item, half-year net profit after tax was Rs 123.98 crore, compared with Rs 43.42 crore a year earlier.

Which Visaka segments contributed to September-quarter revenue?

Visaka’s building products segment generated Rs 331.03 crore of revenue in the September 2026 quarter, compared with Rs 519.41 crore in June 2026 and Rs 266.41 crore in September 2025. Synthetic yarn generated Rs 68.20 crore, compared with Rs 70.64 crore in the preceding quarter and Rs 58.55 crore a year earlier. The other segment contributed Rs 1.16 lakh of revenue.

Building products recorded segment profit before tax and interest of Rs 30.09 crore, down from Rs 86.03 crore in June 2026 but above Rs 8.29 crore a year earlier. Synthetic yarn’s corresponding result was Rs 5.26 crore, compared with Rs 2.58 crore in June 2026 and Rs 2.04 crore in September 2025. The other segment recorded a loss before tax and interest of Rs 16.56 lakh.

The three segments together reported Rs 35.19 crore of profit before tax and interest in September 2026. The consolidated reconciliation then included Rs 5.28 crore of interest and negative Rs 55.92 crore of other unallocable expenditure net of unallocable income, arriving at profit before tax of Rs 85.83 crore. The filing does not allocate the Rs 68.73 crore HCA exceptional item to either building products or synthetic yarn.

What did the HCA award mean for Visaka’s cash and balance sheet?

Visaka recorded the Rs 68.73 crore HCA award as an investing cash inflow for the half year ended September 30, 2026. The cash-flow statement also deducts the award from profit before tax in reconciling to cash generated from operations. Net cash inflow from investing activities was Rs 31.05 crore, compared with Rs 23.19 crore in the corresponding half year of 2025.

Operating cash inflow was Rs 50.30 crore for the September 2026 half year, versus Rs 50.01 crore a year earlier. Payments for property, plant and equipment were Rs 31.02 crore, while inventories increased by Rs 63.46 crore. Financing activities used Rs 95.11 crore, including Rs 38.85 crore of repayments of current borrowings other than related-party loans and Rs 18.93 crore of dividends paid.

Cash and cash equivalents stood at Rs 10.55 crore on September 30, 2026, down from Rs 24.31 crore at March 31, 2026. Total equity increased to Rs 931.22 crore from Rs 826.86 crore, while total assets rose to Rs 1,411.19 crore from Rs 1,349.10 crore. Non-current borrowings declined to Rs 98.06 crore from Rs 115.77 crore and current borrowings fell to Rs 138.72 crore from Rs 186.72 crore.

Conclusion

Visaka’s September 2026 reported profit reflected both an improved year-on-year operating result and a large exceptional receipt. Revenue rose to Rs 399.24 crore from Rs 325.03 crore a year earlier, and pre-exceptional profit before tax moved to Rs 17.10 crore from a Rs 11.29 crore loss. However, it was below the Rs 70.62 crore pre-exceptional profit reported in June 2026, while the HCA award lifted net profit to Rs 71.30 crore.

The next disclosed matter to watch is the finalisation of central and state rules under four labour codes notified on November 21, 2025. Visaka said its assessment is that the estimated impact on existing obligations is not material, but it will monitor further government clarifications and recognise any accounting impact required by subsequent developments.