ZR2 Bioenergy profit falls 56% as operating revenue stays nil

ZR2 Bioenergy Limited reported standalone net profit of Rs 11.83 lakh for the quarter ended September 30, 2026, down 56% from Rs 27.08 lakh a year earlier, while revenue from operations remained nil and all Rs 41.62 lakh of total income was classified as other income. The board approved the results on November 14, 2026.

Why did ZR2 Bioenergy’s September-quarter profit decline?

ZR2 Bioenergy’s standalone profit declined as total income fell to Rs 41.62 lakh from Rs 51.95 lakh in the quarter ended September 30, 2025, while total expenses increased to Rs 30.00 lakh from Rs 24.60 lakh. Profit before tax consequently fell to Rs 11.63 lakh from Rs 27.35 lakh, and profit after a deferred-tax credit of Rs 0.20 lakh was Rs 11.83 lakh.

The year-on-year profit reduction was Rs 15.25 lakh. Other income, the only reported income line in both periods because operating revenue was nil, declined by Rs 10.33 lakh. Expenses rose by Rs 5.40 lakh, with other expenses increasing to Rs 17.83 lakh from Rs 4.89 lakh and depreciation and amortisation rising to Rs 2.67 lakh from Rs 1.45 lakh. Employee-benefit expense, however, declined to Rs 3.45 lakh from Rs 9.07 lakh.

Sequentially, September-quarter profit was also lower than Rs 22.01 lakh in the quarter ended June 30, 2026. Total income was nearly unchanged at Rs 41.62 lakh, compared with Rs 41.63 lakh in June, but expenses rose to Rs 30.00 lakh from Rs 19.83 lakh. The movement included Rs 17.83 lakh of other expenses, against Rs 12.27 lakh in the preceding quarter, and a Rs 6.05 lakh inventory-change expense after a Rs 6.05 lakh credit in June.

Did ZR2 Bioenergy earn any revenue from operations?

No, ZR2 Bioenergy reported nil standalone revenue from operations for the September 2026 quarter, the half year ended September 30, 2026, the September 2025 quarter and the year ended March 31, 2026. The company reported Rs 41.62 lakh of total income in the latest quarter, entirely under other income rather than from operations.

For the half year ended September 30, 2026, other income was Rs 83.25 lakh, down from Rs 98.38 lakh in the comparable 2025 half year. This resulted in half-year profit after tax of Rs 33.84 lakh, compared with Rs 57.94 lakh a year earlier. The cash-flow statement identifies Rs 83.25 lakh as interest received during the latest half year, the same amount reported as other income in the standalone income statement.

The consolidated statement showed the same absence of operating revenue. Consolidated other income was Rs 41.62 lakh in the September 2026 quarter, with total income equal to that amount, while consolidated profit for the period was Rs 11.80 lakh. The Rs 0.03 lakh difference from standalone profit reflected the inclusion of ZR2 Solar Private Limited, identified as the group’s wholly owned subsidiary.

What happened to ZR2 Bioenergy’s cash flow and balance sheet?

ZR2 Bioenergy used Rs 1.02 crore in operating activities during the half year ended September 30, 2026, compared with an operating cash outflow of Rs 69.28 lakh in the equivalent prior-year half year. The current-period outflow followed operating cash flow before working-capital changes of negative Rs 43.98 lakh, compared with negative Rs 26.08 lakh a year earlier.

Working-capital movements added to the outflow: current financial assets increased by Rs 75.48 lakh and other current assets by Rs 11.55 lakh. Those items were partly offset by a Rs 19.10 lakh increase in provisions and a Rs 13.50 lakh reduction in other financial assets. ZR2 Bioenergy generated Rs 71.11 lakh from investing activities, principally Rs 83.25 lakh of interest income less Rs 12.14 lakh spent on fixed assets and capital work in progress.

Cash and cash equivalents were Rs 18.53 crore at September 30, 2026, down Rs 31.02 lakh from Rs 18.84 crore at March 31, 2026. Total assets increased to Rs 141.82 crore from Rs 141.32 crore, including Rs 120.24 crore of capital work in progress. Total equity rose to Rs 140.31 crore from Rs 139.97 crore, while total liabilities increased to Rs 1.51 crore from Rs 1.35 crore.

What is ZR2 Bioenergy planning to build operating income?

ZR2 Bioenergy said it is pursuing a transition into bioenergy and agri-commodities, with acquisition of an operational ethanol plant as the cornerstone. Management said the associated plans include trading in food grains, distillers dried grains with solubles, or DDGs, biomass, dairy commodities and renewable electricity, as well as a premium peanut-butter brand.

The company said these initiatives were at advanced stages, with agreements, memoranda of understanding and regulatory engagements in progress. It also cited agricultural-waste processing, solar-generation and grid-connectivity infrastructure as a foundation for deployment. The filing does not disclose a transaction value, plant capacity, completion date, revenue forecast or operating-income target for these initiatives.

ZR2 Solar Private Limited, the wholly owned subsidiary, was incorporated on October 4, 2024 to generate, accumulate, distribute and supply renewable energy, including solar, wind and hydropower. Its stated scope includes supply for its own use or sales to governments, state electricity boards, transmission or distribution intermediaries, companies, industrial units and other consumers. Management and the board said there were no material uncertainties casting significant doubt on the going-concern basis used for the September 2026 results.

How did earnings per share change at ZR2 Bioenergy?

ZR2 Bioenergy’s standalone basic earnings per share, or EPS, fell to Rs 0.33 for the September 2026 quarter from Rs 0.76 in the September 2025 quarter. Diluted EPS was Rs 0.07, compared with Rs 0.06 a year earlier, while paid-up equity share capital was unchanged at Rs 35.69 lakh, with a face value of Rs 1 per share.

For the six months ended September 30, 2026, standalone basic EPS was Rs 0.95 versus Rs 1.62 in the prior-year period, tracking profit declining to Rs 33.84 lakh from Rs 57.94 lakh. Consolidated basic EPS for the latest quarter was also Rs 0.33, while the consolidated half-year figure was Rs 0.95. The statutory auditors completed a limited review and expressed an unqualified review conclusion for both standalone and consolidated results.

Conclusion

ZR2 Bioenergy’s September-quarter filing shows a Rs 11.83 lakh standalone profit but no operating revenue, with all Rs 41.62 lakh of income recorded as other income. Lower other income and higher expenses reduced profit by 56% year on year, while the half-year operating cash outflow widened to Rs 1.02 crore.

Investors can next watch for disclosed progress on the operational ethanol-plant acquisition and the agreements, memoranda of understanding and regulatory engagements tied to bioenergy and agri-commodity activities. The filing provides no completion date, capacity measure or revenue target, making future filings important for evidence of operating revenue from these stated plans.