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Corporate Merchant Bankers Ltd reported a sharp turnaround in H1 FY26 with profit after tax of ₹159.98 lakh compared to a loss of ₹2.16 lakh in H1 FY25. Total income for H1 FY26 rose to ₹321.51 lakh (H1 FY25: ₹99.63 lakh), while Q2 FY26 standalone PAT came in at ₹102.27 lakh versus ₹2.06 lakh in Q2 FY25, taking EPS for H1 FY26 to ₹4.85. Notably, the company has zero revenue from operations — all earnings are classified as 'Other Income'. The balance sheet shows borrowings of ₹9,122.50 lakh against total equity of just ₹688.75 lakh, indicating very high leverage. Net cash from operating activities turned negative at ₹(74.28) lakh in H1 FY26 versus ₹165.69 lakh positive a year ago. The Board has not recommended any dividend for FY25-26, and auditor J. Singh & Associates issued an unqualified limited review report.
While the swing to profit is dramatic on paper, investors should note that the company has no operating revenue, very high debt-to-equity (~13x), and negative operating cash flow — meaning profits are not backed by core business activity or cash generation. Related-party transactions including a loan to the Managing Director were disclosed, warranting a closer look at governance.