Yug Decor reports Rs 27.54 lakh H1 loss as costs rise

Yug Decor Limited reported a Rs 27.54 lakh net loss for the six months ended September 30, 2026, as total expenses of Rs 21.85 crore exceeded total revenue of Rs 21.48 crore. Revenue from operations rose 9.6% year on year to Rs 21.38 crore, but the company moved from a Rs 14.76 lakh profit in the preceding half year to a loss.

What caused Yug Decor's loss in the September 2026 half year?

Yug Decor made a loss because its total expenses were Rs 36.80 lakh higher than its total revenue in the six months ended September 30, 2026. The company recorded a pre-tax loss of Rs 36.80 lakh, compared with a Rs 18.76 lakh pre-tax profit in the six months ended March 31, 2026. The results reported no exceptional or extraordinary items in either period.

A deferred-tax credit of Rs 9.26 lakh reduced the pre-tax loss to a net loss of Rs 27.54 lakh. In the preceding half year, Yug Decor had reported Rs 3.70 lakh of current tax and Rs 30,000 of deferred tax, resulting in net profit of Rs 14.76 lakh. Basic and diluted earnings per share, which were not annualised, were both a loss of Rs 0.17 in the latest half year, against earnings of Rs 0.12 in the March 2026 half year.

The latest loss was also wider than the Rs 7.10 lakh loss reported for the six months ended September 30, 2025. Pre-tax loss widened from Rs 8.49 lakh a year earlier to Rs 36.80 lakh in the latest period. This reflects a larger gap between revenue and expenses despite growth in revenue from operations.

How did Yug Decor's revenue and costs change?

Yug Decor's revenue from operations rose to Rs 21.38 crore in the September 2026 half year from Rs 19.50 crore a year earlier and Rs 19.24 crore in the preceding half year. Other income fell to Rs 9.83 lakh from Rs 15.23 lakh in the September 2025 half year and Rs 32.98 lakh in the March 2026 half year. Total revenue therefore reached Rs 21.48 crore, compared with Rs 19.65 crore a year earlier.

Total expenses rose to Rs 21.85 crore from Rs 19.74 crore in the September 2025 half year, an increase of 10.7% that was faster than the 9.6% increase in operating revenue. Cost of materials consumed, the largest expense line, increased to Rs 16.91 crore from Rs 15.86 crore. Employee-benefit expense was Rs 2.51 crore, nearly unchanged from Rs 2.51 crore a year earlier, while other expenses increased to Rs 2.26 crore from Rs 2.21 crore.

Finance cost declined to Rs 51.15 lakh from Rs 70.40 lakh a year earlier, while depreciation and amortisation fell to Rs 39.43 lakh from Rs 46.02 lakh. These reductions did not offset the Rs 1.05 crore increase in material consumption. The change in inventories of finished goods, work-in-progress and stock-in-trade was a Rs 85.96 lakh credit, compared with a Rs 2.06 crore credit in the September 2025 half year.

Which Yug Decor segment changed most?

Yug Decor's Plywood Boards segment grew faster in revenue, while Speciality Chemicals-Adhesives had the larger decline in segment result. Plywood Boards revenue rose to Rs 8.24 crore in the September 2026 half year from Rs 7.15 crore a year earlier. Speciality Chemicals-Adhesives revenue increased to Rs 13.15 crore from Rs 12.36 crore, and the two segments accounted for the full Rs 21.38 crore of revenue from operations, with no inter-segment revenue reported.

Speciality Chemicals-Adhesives reported a segment result of Rs 10.63 lakh, defined in the filing as profit or loss before tax and interest. That was down from Rs 1.14 crore in the September 2025 half year and Rs 87.25 lakh in the March 2026 half year. Plywood Boards reported a Rs 40.83 lakh segment result, improving from a Rs 17.68 lakh loss a year earlier but below the Rs 45.76 lakh reported in the preceding half year.

Combined segment result was Rs 51.46 lakh, against Rs 96.02 lakh a year earlier. Yug Decor then deducted interest of Rs 51.15 lakh and net unallocable expenditure of Rs 37.11 lakh, for total deductions of Rs 88.26 lakh. Those deductions exceeded the combined segment result and produced the Rs 36.80 lakh loss before tax.

How did Yug Decor's balance sheet and cash flow move?

Yug Decor's total assets increased to Rs 38.26 crore at September 30, 2026 from Rs 36.38 crore at March 31, 2026. Trade receivables rose to Rs 17.31 crore from Rs 14.90 crore, while inventories increased to Rs 11.62 crore from Rs 10.30 crore. Cash and cash equivalents fell to Rs 72.25 lakh from Rs 2.78 crore during the same six-month period.

Net cash used in operating activities was Rs 54.56 lakh for the September 2026 half year. Trade receivables increased by Rs 2.41 crore and inventories increased by Rs 1.32 crore, while trade payables increased by Rs 2.56 crore. The company recorded Rs 7.93 lakh of net cash from investing activities and used Rs 1.59 crore in financing activities.

Financing cash use included Rs 86.26 lakh of net repayment of long-term borrowings, Rs 21.74 lakh of net repayment of short-term borrowings and Rs 51.15 lakh of interest paid. Total liabilities increased to Rs 21.60 crore at September 30, 2026 from Rs 19.44 crore at March 31, 2026, while shareholders' funds declined to Rs 16.67 crore from Rs 16.94 crore. Trade payables to creditors other than micro and small enterprises rose to Rs 6.64 crore from Rs 4.05 crore.

Conclusion

Yug Decor's September 2026 half-year results show that higher sales in both reported segments did not translate into profit. Operating revenue increased to Rs 21.38 crore, but expenses reached Rs 21.85 crore and combined segment result of Rs 51.46 lakh was more than absorbed by Rs 88.26 lakh of interest and net unallocable expenditure. The outcome was a Rs 27.54 lakh net loss, following a Rs 14.76 lakh profit in the March 2026 half year.

The next results will show whether Yug Decor can convert its higher working-capital balances into cash. At September 30, 2026, receivables stood at Rs 17.31 crore and inventories at Rs 11.62 crore, while cash and cash equivalents had declined to Rs 72.25 lakh after a Rs 54.56 lakh operating cash outflow. The board approved the unaudited results on November 7, 2026, and the statutory auditor issued its limited-review report on the same date.