Hindustan Organic Chemicals500449Quarterly results

Q2 FY27 results with unmodified audit opinion; BSE fine and SEBI board composition non-compliance flagged

HOCL's 429th Board Meeting (04th November 2026, 03:30 PM to 04:20 PM) approved limited reviewed un-audited results for Q2 and half year ended 30th September 2026, standalone and consolidated.

By ScoutQuest · Wed 4 Nov 2026, 4:37 PM IST · 3 min read

Consolidated · ₹ lakh · EPS in ₹
Line item	Latest	Year ago	YoY	Prev qtr	QoQ
Revenue from operations	23,495.12	12,626.75	+86.1%	9,599.62	+145%
Total income	23,936.31	13,136.76	+82.2%	10,028.96	+139%
Profit before tax	4,481.99	(1,813.71)	—	369.43	—
Profit after tax	3,499.86	(1,816.71)	—	383.98	+811%
Total comprehensive income	3,504.20	(1,838.49)	—	388.31	+802%
Basic EPS	5.21	(2.70)	—	0.57	+814%

Total income YoY growth: +82.2%
Period: Quarter ended 30.09.2026 (Unaudited)

Also decided at the meeting

Board noted the appointment of M/s. Balan & Co. as statutory auditors for FY 2026-27 by CAG.
Board took up the fine imposed by BSE for Q1 of FY 2026-27 and the waiver application submitted by HOCL.

Auditor's review

Conclusion: Unmodified

Emphasis: Govt (CCEA) decided to close subsidiary Hindustan Fluorocarbons; material uncertainty on going concern, subsidiary no longer considered a going concern (Ind AS 105).
Emphasis: holding company implementing Govt-approved restructuring plan; as Kochi unit is operational, statements prepared on going concern basis.
Emphasis: loan of Rs. 453.01 lakhs to subsidiary, interest stopped from 2023-24; subsidiary transferred Rs. 1,362.03 lakhs to escrow re delisting, adjusted against loan/interest.
Emphasis: non-compliance with SEBI LODR Reg 17(1)(b), 17(1)(c), 17(1E) on board composition; subsidiary proposed Scheme of Amalgamation with holding company.

Notes to the results

Subsidiary HFL proposed a Scheme of Amalgamation for merger with its Holding Company, subject to approvals; no effect given pending approvals.
Subsidiary HFL operations shown as discontinued; profit from discontinued operations Rs. 14.87 lakhs for the quarter.
Company implementing Government-approved restructuring plan; sale of unencumbered land at Rasayani in progress; Kochi Phenol plant operational, so going concern basis.
No impact under Exceptional Items in FY 2026-27 from the mesne profits matter (liability Rs. 4,306.91 lakhs recognised in FY 2024-25).

Board meeting outcome

The 429th Board Meeting was held on 04th November 2026, from 03:30 PM to 04:20 PM. The Board approved the limited reviewed un-audited financial results for the 2nd quarter and half year ended 30th September 2026, both standalone and consolidated.

Auditor's conclusion

Statutory auditors M/s. Balan & Co. issued limited review reports carrying an unmodified opinion for both standalone and consolidated results, without any qualifications.

Other items placed before the Board

A fine imposed by BSE for Q1 of FY 2026-27; HOCL has submitted a waiver application.
The appointment of M/s. Balan & Co. as statutory auditors for FY 2026-27 by the CAG was noted.
The trading window for insiders, closed from 1st October 2026, remains closed till 48 hours after the financial results are declared.

Points the auditors drew attention to (emphasis of matter)

The company is implementing a restructuring plan approved by the Central Government; the Kochi unit is operational, so the financial statements are prepared on a going concern basis.
HOCL has advanced a loan of Rs. 453.01 lakhs to its subsidiary at an interest rate ranging from 10.25 to 14.50 %. As the subsidiary did not pay interest, charging of interest stopped from 2023-24. During 2025-26 the subsidiary repaid Rs. 1,075.05 lakhs towards interest and Rs. 286.98 lakhs towards loan repayment.
Non-compliance with SEBI (LODR) Regulations, 2015 on the composition of the Board: requirements on the combination of independent directors, the minimum number of directors and the delay in filling the vacancy of an independent director were not met.
In the consolidated results, the subsidiary Hindustan Fluorocarbons Limited is no longer considered a going concern after the Cabinet Committee on Economic Affairs decided to close its operations; the closure process, settlement of liabilities and legal follow-up continue.
The subsidiary transferred ₹1,362.03 lakhs from its fixed deposits to an escrow account maintained by HOCL, in connection with the proposed delisting of shares; the amount was adjusted against the outstanding loan and interest payable by the subsidiary.

Proposed amalgamation

A Scheme of Amalgamation has been proposed for merger with the holding company, subject to obtaining necessary approvals from appropriate authorities; no effect of the proposed amalgamation has been given in the financial statements.

Standalone results (Rs. in lakhs)

Revenue from operations: 23,495.12 for Q2 and 33,094.74 for the half year.
Total income: 23,936.31 for Q2 and 33,965.27 for the half year.
Net Profit for the period: 3,484.99 for Q2 and 3,854.42 for the half year.
Basic and diluted EPS: 5.19 for Q2 and 5.74 for the half year (face value of Rs.10 each).

Subsidiary snapshot (unaudited, not reviewed)

Hindustan Fluoro Carbons Limited: total income 29.45 lakhs and net profit 14.87 lakhs for the period ended 30th September 2026.

What a retail reader can take away

The results come with a clean review opinion, while the auditor's notes flag Board-composition non-compliance, the closure of the subsidiary's operations and a loan to that subsidiary. These are the items to weigh alongside the profit figures.

23,936.31 (Rs. in lakhs)Total income, latest quarter

Revenue from operations, latest quarter23,495.12 (Rs. in lakhs)

Total comprehensive income, quarter388.31 (Rs. in lakhs)

Total income, latest quarter 23,936.31 (Rs. in lakhs): Revenue from operations, latest quarter 23,495.12 (Rs. in lakhs), Total comprehensive income, quarter 388.31 (Rs. in lakhs).

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