Q2/H1 FY27 results approved; auditor review unmodified, with emphasis on MAT credit and rent income
Board meeting on 22 Oct 2026 approved the unaudited standalone and consolidated results for the quarter and half year ended 30 Sept 2026, on the Audit Committee's recommendation.
By ScoutQuest · · 3 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 1,960.77 | 2,783.13 | −29.5% | 825.67 | +137% |
| Total income | 2,767.67 | 3,432.30 | −19.4% | 888.63 | +211% |
| Profit before tax | 1,030.49 | 1,880.61 | −45.2% | (687.01) | — |
| Profit after tax | 678.91 | 1,021.13 | −33.5% | (655.73) | — |
| Total comprehensive income | 737.26 | 1,021.13 | −27.8% | (551.75) | — |
| Basic EPS | 1.32 | 1.98 | −33.3% | (1.27) | — |
- Total income YoY change
- 3,432.30 (−19.4%)
- Profit after tax (latest)
- 678.91 Lakhs, Year ago 1,021.13 (−33.5%)
- Period
- 30-09-2026
Auditor's review
Conclusion: Unmodified
- Consolidated review: subsidiary Varvee Energy Private Limited's results (total assets Rs. 1 million, revenues NIL) reviewed by its auditors/management; conclusion not modified on this matter.
Notes to the results
- Company continues to recognise MAT credit of Rs. 5.90 Crores (Approx.); MAT credit of Rs. 2.02 crores lapsed and was written off in FY 2025-26.
- Assets held for sale of Rs. 1442.03 Lakhs at 31 March 2026; net block of Rs. 201.94 Lakhs reduced during quarter ended 30-09-2026.
- New subsidiary Varvee Energy Private Limited incorporated on 7 July 2026; no funds infused so far.
- Company executed MOU for temporary use of a portion of factory in addition to earlier rent agreement; signed copy pending.
What the board approved
Varvee Global Ltd's board met on 22 October 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, based on the Audit Committee's recommendation. The statutory auditors, Pankaj R Shah & Associates, issued a Limited Review Report with an unmodified conclusion — nothing came to their attention suggesting the statements were non-compliant or materially misstated. A review is narrower in scope than a full audit and is not an audit opinion.
Auditor's two emphasis points
- Note 3: continuity in recognition of MAT credit as at 30 June 2026.
- Note 11: temporary rent income booked in addition to the original agreement during the quarter ended 30 September 2026.
The auditors state that their conclusion is not modified in respect of these matters and that they have relied upon the assumptions and explanations provided by the management.
Standalone results (Rs. in Lakhs)
- Revenue from operations: 1,960.77 in Q2 FY27 against 2,783.13 in Q2 FY26; half year 2,786.44 against 2,727.93.
- Total income: 2,767.67 against 3,432.30.
- Total expenses: 1,737.18 against 1,551.69.
- Profit before tax: 1,030.49 against 1,880.61.
- Net profit for the period: 678.91 against 1,021.13; half year 23.18 against 3,569.21.
- Basic & diluted EPS: 1.32 against 1.98; half year 0.04 against 7.09.
The revenue mix shifted within the standalone segment table: Textile Division revenue was 453.13 in Q2 FY27 against 2,734.13 in Q2 FY26, while Trading in Other Commodities was 1,157.64 against 49.00, and Others 350.00 against 49.00. The Textile Division segment result before tax and interest was 192.49.
Balance sheet and cash position (standalone)
- Total assets 15,825.99 as at 30 September 2026, against 18,384.11 as at 31 March 2026.
- Assets held for sale 1,240.09, against 1,442.03.
- Net cash from operating activities for the half year: (1,833.14) against 449.94 a year earlier, where brackets denote an outflow.
- Cash & cash equivalents at the end of the half year: 307.95.
Other notes to the results
- MAT credit of Rs. 5.90 Crores (Approx.) continues to be recognised as an asset; MAT credit of Rs. 2.02 crores (Approx.) lapsed and was written off during FY 2025-26.
- The company incorporated a new subsidiary, Varvee Energy Private Limited, on 7 July 2026, so consolidation is required; no fund has been infused into it so far. Its total assets are Rs. 1 million as at 30 September 2026, with total revenues NIL.
- Stocks were physically confirmed; management reports no material discrepancies between book stock and physical stock.
- During the quarter the company states it had no production of finished goods and was engaged in job work, trading of goods, leasing arrangements and digital marketing services.
- An MoU was executed during the quarter for temporary use of a portion of the factory, in addition to the earlier rent agreement with the concerned party; the signed copy is pending receipt.
What a retail reader may weigh
The headline profit line is lower than a year ago at both the quarterly and half-yearly level, the quarter's revenue came mostly from commodities trading rather than the textile division, and two items inside the numbers — MAT credit recognition and additional temporary rent income — were specifically flagged by the auditors while leaving their conclusion unmodified.
Also from Varvee Global
Varvee Global Ltd press release, Q2 FY27
23 Oct 2026
Board meet on 22 October 2026 to consider Un-Audited results for quarter, half year ended 30 September 2026
16 Oct 2026
Board Approves 1:5 Stock Split (Rs. 5 to Rs. 2 Face Value) and MOA Capital Clause Change, Subject to Shareholder Nod
25 Sep 2026
More numbers
- Net profit for the period, H1 FY27 standalone (Rs. in Lakhs)23.18
- Net profit for the period, H1 FY26 standalone (Rs. in Lakhs)3,569.21
- MAT credit carried forward (Rs. in Crores, approx.)5.90 Crores
- Non-current assets held for sale as at 31 March 2026 (Rs. in Lakhs)1442.03 Lakhs
- Total income, latest quarter2,767.67 (₹ In Lakhs)
- Total income, year-ago quarter3,432.30 (₹ In Lakhs)
- Total income, previous quarter888.63 (₹ In Lakhs)
- Total comprehensive income, latest quarter737.26 (₹ In Lakhs)
- Total comprehensive income, year-ago quarter1,021.13 (₹ In Lakhs)
- Total comprehensive income, previous quarter(551.75) (₹ In Lakhs)
- Profit after tax, latest quarter678.91 (₹ In Lakhs)
- Profit after tax, year-ago quarter1,021.13 (₹ In Lakhs)
- Profit after tax, previous quarter(655.73) (₹ In Lakhs)
- Revenue from operations, latest quarter1,960.77 (₹ In Lakhs)
- Revenue from operations, year-ago quarter2,783.13 (₹ In Lakhs)
- Revenue from operations, previous quarter825.67 (₹ In Lakhs)
- Profit before tax, latest quarter1,030.49 (₹ In Lakhs)
- Profit before tax, year-ago quarter1,880.61 (₹ In Lakhs)
- Profit before tax, previous quarter(687.01) (₹ In Lakhs)
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