OUTCOME OF THE BOARD OF DIRECTORS MEETING HELD ON NOVEMBER 11, 2025.
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The Board approved unaudited standalone financial results for Q2 and H1 FY26 (ended Sept 30, 2025). Revenue from operations jumped sharply to ₹15,969.93 lakhs in H1 FY26 versus just ₹86.86 lakhs in H1 FY25, a massive spike driven mainly by sales of agricultural produce, particularly rice. Profit after tax for H1 FY26 rose to ₹220.66 lakhs (from ₹24.16 lakhs in H1 FY25), translating to an EPS of ₹0.00 per share (face value ₹10). Despite top-line growth, profit margins are razor-thin, with H1 PBT margin of roughly 1.8% versus about 28% a year ago, since most of the revenue flows through as purchase cost. Operating cash flow turned positive at ₹775.10 lakhs against a negative ₹775.51 lakhs in the prior year period. Trade receivables ballooned to ₹15,886.33 lakhs and trade payables to ₹15,677.36 lakhs, mirroring the trading activity. The statutory auditor (Valawat & Associates) issued an unmodified opinion but flagged an Other Matter highlighting that supplier-to-buyer direct delivery rice transactions were booked as the company's own sales.
Headline numbers look spectacular but the business has effectively morphed into low-margin agricultural trading, leaving negligible value-added profit per rupee of revenue. The auditor's Other Matter paragraph is a yellow flag on revenue quality, and the ballooning receivables and payables warrant close monitoring. Existing shareholders should view the surge cautiously until clarity emerges on the sustainability and economics of the rice trading business.