Zuari Industries posts Rs 17 crore standalone Q2 profit

Zuari Industries Limited posted standalone profit of Rs 16.99 crore for the quarter ended 30 September 2026, compared with Rs 3.13 crore a year earlier, despite booking Rs 6.28 crore of exceptional furniture-business impairment charges. Revenue from operations rose to Rs 209.66 crore from Rs 204.51 crore in the prior-year quarter.

How did Zuari Industries perform in standalone Q2?

Zuari Industries earned Rs 16.99 crore in standalone profit in the September 2026 quarter, reversing a Rs 9.48 crore loss in the preceding June quarter and exceeding the Rs 3.13 crore profit reported in September 2025. Profit before tax reached Rs 24.89 crore, against Rs 6.11 crore a year earlier, while deferred tax expense rose to Rs 7.90 crore from Rs 2.98 crore.

Revenue from operations was Rs 209.66 crore in Q2, up from Rs 204.51 crore a year earlier but down from Rs 266.52 crore in Q1. Other income increased to Rs 52.06 crore from Rs 43.59 crore in the prior-year quarter, taking total income to Rs 261.72 crore from Rs 248.10 crore.

What caused the furniture-business impairment charge?

Zuari Industries recorded Rs 6.28 crore of standalone exceptional charges in Q2 after reviewing the current situation and future prospects of its furniture business. The charge comprised a Rs 3.95 crore impairment relating to Indian Furniture Products Limited and a Rs 2.33 crore impairment relating to Zuari Furniture Limited.

Zuari Industries reported investments of Rs 68.94 crore and an inter-corporate deposit, or ICD, of Rs 25.23 crore in Indian Furniture Products Limited. It also disclosed investments of Rs 51.35 crore and an ICD of Rs 60.05 crore in Zuari Furniture Limited. The filing does not specify the individual carrying values written down through the Q2 impairment charges.

The furniture impairment was lower than the Rs 12.52 crore total exceptional loss reported in Q2 last year. In that earlier quarter, Indian Furniture Products Limited accounted for Rs 3.62 crore and Zuari Furniture Limited for Rs 1.92 crore, while an insurance-claim settlement accounted for the remaining Rs 6.98 crore. For the half year ended 30 September 2026, furniture-related charges totalled Rs 16.03 crore, compared with Rs 10.03 crore in the prior-year half.

How did costs and first-half results change?

Zuari Industries reported standalone profit before exceptional items and tax of Rs 31.17 crore in Q2, up from Rs 18.63 crore a year earlier, as total expenses rose to Rs 230.55 crore from Rs 229.47 crore while total income rose to Rs 261.72 crore from Rs 248.10 crore. Inventory changes were Rs 168.12 crore against Rs 154.14 crore, while finance costs declined to Rs 25.32 crore from Rs 27.55 crore.

For the half year ended 30 September 2026, standalone revenue from operations rose to Rs 476.18 crore from Rs 414.78 crore a year earlier. Profit before exceptional items and tax increased to Rs 26.73 crore from Rs 19.54 crore, and the Rs 11.21 crore net exceptional charge plus Rs 8.00 crore tax expense resulted in a Rs 7.52 crore profit, compared with a Rs 76 lakh loss in the previous first half.

Standalone basic and diluted earnings per share, or EPS, were Rs 5.70 in Q2, compared with Rs 1.05 a year earlier and a Rs 3.18 loss per share in Q1. Total comprehensive income was a negative Rs 241.80 crore because other comprehensive income was a negative Rs 258.79 crore, a separate accounting line from the Rs 16.99 crore profit for the period.

What do consolidated segments and associate income show?

Zuari Industries posted consolidated profit of Rs 184.73 crore in Q2, compared with Rs 164.29 crore a year earlier and Rs 5.12 lakh in Q1. The result included Rs 188.45 crore as its share of profit from associates and joint ventures, versus Rs 186.75 crore in Q2 last year; before associate and joint-venture income, exceptional items and tax, the group made Rs 2.68 crore, against a Rs 12.73 crore loss.

Sugar generated Rs 194.94 crore of consolidated revenue and Rs 13.47 crore of segment result in Q2, compared with Rs 176.24 crore and Rs 4.81 crore respectively a year earlier. Ethanol revenue declined to Rs 28.04 crore from Rs 48.37 crore, and its segment result moved to a Rs 1.22 crore loss from a Rs 2.65 crore profit.

Real-estate revenue increased to Rs 24.81 crore from Rs 7.00 crore, although its segment result remained a Rs 2.04 crore loss, compared with a Rs 2.22 crore loss a year earlier. Engineering-services revenue grew to Rs 26.47 crore from Rs 18.06 crore and reported a Rs 1.17 crore segment profit, against a Rs 58 lakh loss. These are consolidated segment figures rather than standalone measures.

What changed in cash flow and borrowings during the half year?

Zuari Industries generated Rs 300.43 crore of standalone operating cash flow in the first half of fiscal 2027, compared with Rs 229.42 crore in the prior-year first half. This included a Rs 371.38 crore release from inventories, partly offset by a Rs 143.51 crore reduction in trade payables and other liabilities; cash and cash equivalents ended the period at Rs 7.29 crore, down from Rs 12.76 crore at 31 March 2026.

Standalone non-current borrowings rose to Rs 555.39 crore at 30 September 2026 from Rs 301.07 crore at 31 March 2026, while current borrowings declined to Rs 231.54 crore from Rs 857.30 crore. The half-year cash-flow statement recorded Rs 360.38 crore of non-current borrowing repayments and Rs 315 crore of proceeds, alongside Rs 335.75 crore of current borrowing repayments.

Conclusion

Zuari Industries combined a higher year-on-year operating surplus and other income with a lower total exceptional charge than a year earlier to deliver Rs 16.99 crore of standalone Q2 profit. The furniture impairment remained a material charge at Rs 6.28 crore, while consolidated profit continued to be largely shaped by the Rs 188.45 crore share of profit from associates and joint ventures.

The next developments to watch are Zuari Industries’ continuing assessment of the furniture businesses supporting its investments and ICDs, and the progress of the sugar season. The filing states that sugar-cane crushing normally occurs from October to May while sales take place throughout the year, meaning quarterly performance can vary through the cycle.