HERANBABSEHeranba Industries LtdHighNeutral
Announced Thu, 28 May · 18:45 IST

Enclosed herewith Outcome of Board Meeting.

Revenue Growth 20pctPat NegativeEbitda Margin CompressionNegative Operating CashflowDebt Equity ThresholdResults View source PDF

HERANBA · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
-8.9%1-day move
₹195.90
prior close
₹191.86
base price
After-mkt
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AI summary

Heranba Industries reported FY2026 standalone revenue of Rs 1,755.55 crore, up 17.4% from Rs 1,495.90 crore, with standalone PAT at Rs 50.87 crore (down 5.8% from Rs 53.99 crore). However, consolidated results show a dramatic reversal with consolidated revenue of Rs 1,594.99 crore but a net loss of Rs 77.56 crore compared to profit of Rs 2.25 crore in FY2025. The Q4 standalone showed a loss of Rs 12.50 crore while consolidated Q4 loss stood at Rs 58.32 crore. Operating cash flow turned negative at Rs 203.92 crore (vs positive Rs 136.71 crore in FY2025) due to working capital buildup with inventory up Rs 124 crore and receivables up Rs 31.6 crore. Short-term borrowings nearly doubled to Rs 458 crore. No dividend was recommended for FY2025-26. Auditors issued unmodified opinions on both standalone and consolidated results. Cost auditor M/s Tapan Gaitonde & Co. was reappointed for FY2026-27.

Likely market impact

The standalone business shows moderate revenue growth but profit decline, while the consolidated loss of Rs 77.56 crore indicates severe problems at subsidiary level, likely due to high depreciation (Rs 98 crore vs Rs 57 crore), elevated finance costs (Rs 50 crore), and working capital stress. The negative operating cash flow and doubling of short-term debt raise liquidity concerns despite the clean audit opinion.