Hemo Organic reported a net profit of Rs 0.53 lakh for the quarter ended September 30, 2026, marking a turnaround from the previous quarter's loss. Revenue surged to Rs 1.429 crore from negligible levels. However, the company received a qualified opinion from its statutory auditor regarding missing balance confirmations for trade receivables and payables, raising significant concerns about the transparency of its financial position.
Hemo Organic Reports Q2 Profit Amid Audit Qualification
Revenue reached Rs 1.429 crore for the quarter ended September 30, 2026. Net profit stood at Rs 0.53 lakh against a prior loss of Rs 7.42 lakh.
Reader Takeaway: Revenue recovery signals operational improvement, but the auditor's qualified opinion on trade balances presents a material risk.
What just happened
Hemo Organic Ltd released its financial results for the quarter and half-year ended September 30, 2026, following a board meeting on October 17. The company swung into a net profit of Rs 0.53 lakh for the September quarter, a notable shift from the net loss of Rs 7.42 lakh recorded in the quarter ended June 30, 2026.
Why this matters
The financial results are overshadowed by a qualified opinion from the statutory auditor, V S S B & Associates. The auditor explicitly stated that they were not provided with balance confirmations or necessary documentation for trade receivables and trade payables. As a result, the auditor was unable to verify the accuracy and nature of these figures, which directly impacts the reliability of the reported financial statement.
Risks to watch
Investors should focus on the Rs 2.3576 crore in reported trade receivables. Given the auditor’s inability to confirm these balances, there is uncertainty regarding the actual realizable value of these assets. The lack of documentation for payables also suggests potential internal control or reporting gaps that could lead to future revisions or regulatory scrutiny.
Context metrics
As of September 30, 2026, the company reported total assets of Rs 4.758 crore. Total borrowings combined (non-current and current) stand at Rs 1.4833 crore. While the top-line performance improved significantly during this period, the concentration of trade receivables remains a primary point of concern for financial transparency.
What to track next
Shareholders should monitor subsequent regulatory filings for management’s response to the auditor’s remarks. Clarification on how the company plans to resolve the missing balance confirmations will be critical for restoring investor confidence.