Bhatia Colour Chem Reports H1 Performance

Bhatia Colour Chem recorded revenue of Rs 79.83 crore and a net profit of Rs 2.35 crore for the half-year ended September 30, 2026.

Reader Takeaway: Revenue growth is tempered by rising input costs, while one-time reserve gains provide balance sheet support.

What just happened

Bhatia Colour Chem released its financial results for the half-year ending September 30, 2026. While the top line grew to Rs 79.83 crore from Rs 72.11 crore in the year-ago period, net profit declined from Rs 3.15 crore to Rs 2.35 crore. The margin compression was driven by a rise in material costs to Rs 61.41 crore and increased employee benefit expenses at Rs 6.13 crore.

Corporate Action: Warrant Forfeiture

A major accounting adjustment occurred regarding the company’s share warrants. With 22,96,003 warrants lapsing due to non-exercise within the 18-month window, the company forfeited the 25% subscription money collected. This amount, totaling Rs 7.69 crore, was transferred to the company's capital reserves, bolstering the equity section of the balance sheet without impacting operational cash flow.

Regulatory and Operational Update

On April 8, 2026, the Directorate General of Goods and Services Tax Intelligence (DGGI) conducted an inspection under the CGST Act. The audit identified discrepancies in wastage stock, resulting in a penalty payment of Rs 2.92 lakh. Additionally, the company is dealing with rising trade receivables, which reached Rs 109.56 crore by September 30, 2026, compared to Rs 97.54 crore at the end of March 2026. Cash flow from operations was negative at Rs 7.59 crore for the period.

What to track next

Investors should monitor the company’s ability to optimize input costs and manage its ballooning trade receivables, which could affect future liquidity and working capital cycles.