Shree Rama Multi-Tech532310Quarterly results

Board approves Sept-quarter and half-year results; auditor's review conclusion is qualified

Board approved unaudited results for the quarter and half year ended 30th September, 2026.

By ScoutQuest · Fri 30 Oct 2026, 12:53 PM IST · 3 min read

Revenue from operations (standalone): Rs. 7,694.98 lakh against Rs. 6,202.12 lakh a year earlier
Net Profit for the period After Tax: 732.75 for the quarter against 717.33
Preference share redemption extension: 7,66,666 15% Cumulative Redeemable Preference Shares of Rs. 100/- each extended by five years

What the board approved

The board of directors at its meeting held on 30th October, 2026 approved the unaudited financial results for the quarter and half year ended 30th September, 2026, as reviewed by the Audit Committee, together with the Limited Review Report of the statutory auditor, the Statement of Assets and Liabilities and the Statement of Cash Flows for the half year. The meeting commenced at 11:00 a.m. and concluded at 12:40 p.m.

The numbers (standalone, unaudited)

Results are presented in Rs. in lakh, so a printed figure of 7,694.98 means Rs. 7,694.98 lakh.

Revenue from operations: 7,694.98 for the quarter ended 30/09/2026, against 6,202.12 in the quarter ended 30/09/2025; 15,746.95 for the half year against 11,737.03.
Total Income: 7,701.34 for the quarter; 15,776.49 for the half year.
Net Profit for the period After Tax: 732.75 for the quarter against 717.33; 1,538.88 for the half year against 1,452.05.
Total Expenses: 6,707.07 for the quarter against 5,417.82.
Earnings per share (face value Rs. 5/- each): basic and diluted 0.53 for the quarter and 1.11 for the half year.

The company operates in a single segment, described in the notes as manufacturing of packaging materials.

Auditor's review conclusion

The Limited Review Report carries a qualified conclusion. The qualification is on the basis of preparation: non-consolidation of the accounts of Shree Rama (Mauritius) Limited (wholly owned subsidiary) as per Section 129 of the Act and Ind AS 110, for the reasons given in Note 4 to the results. Subject to that matter, the auditor states that nothing has come to its attention that causes it to believe the statement contains any material misstatement.

What Note 4 says about the subsidiary

The company made an investment of Rs. 13.06 lakhs into equity shares and Rs. 18.60 lakhs in share application money in the wholly owned subsidiary.
The company has applied to the authorised dealer for RBI permission to write off, as required under FEMA laws.
The subsidiary is declared Defunct under Mauritius law.
The company has made full provision for diminution in the value of the investment in equity and share application money in earlier years.

Preference share redemption changed

The board at its meeting held on 13th August, 2026 approved a variation in the terms of redemption of 7,66,666 15% Cumulative Redeemable Preference Shares of Rs. 100/- each (unlisted), allotted on 11th September, 2023.
The tenure of redemption is extended by a further period of five years from the original date of redemption, with the consent of the preference shareholder, in view of the absence of distributable profits.
Consequent to this, those shares will now be redeemed in three equal instalments at the end of the eighth, ninth and tenth year from the date of allotment, instead of the earlier schedule of the third, fourth and fifth year. All other terms remain unchanged.

Balance sheet position (Rs. in lakh)

Total assets: 23,698.32 as at 30/09/2026 against 22,785.80 as at 31/03/2026.
Total equity: 19,295.44 against 17,753.13.
Non-current borrowings: 1,453.53 against 1,337.37; current borrowings: 274.21 against 855.09.
Cash and cash equivalents: 67.00 against 859.35.
Trade receivables: 6,340.14 against 5,832.88.

Cash flow for the half year (Rs. in lakh)

Net cash flows from operating activities: 2,228.68 against 2,690.69 in the half year ended 30/09/2025.
Net cash used in investing activities: 2,494.84, which includes purchase of property, plant and equipment of 2,503.19.
Net cash used in financing activities: 526.19.
Net decrease in cash and cash equivalents: 792.35.

How a retail investor might read this

The headline is a routine quarterly disclosure, but two points stand out. First, the auditor's conclusion is qualified because the overseas subsidiary is not consolidated — that subsidiary is described as defunct and the money put into it is stated to be fully provided for in earlier years, so the qualification relates to scope of consolidation rather than to a fresh hit to this period's profit. Second, redemption of the preference shares has been stretched out, with the company citing absence of distributable profits as the reason; that changes when the company has to pay that money back.

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