Raghuvir Synthetics Returns to Profit in September Quarter

Revenue for Q2 FY27 stood at Rs 131.56 crore, with a net profit of Rs 0.20 crore.

Reader Takeaway: Q2 revenue growth drove a return to profitability, though pending GST tax demands require investor monitoring.

What just happened

Raghuvir Synthetics Ltd has released its unaudited standalone financial results for the quarter ended September 30, 2026. After reporting a net loss of Rs 4.22 crore in the June 2026 quarter, the company returned to profitability with a net profit of Rs 0.20 crore. This turnaround was supported by a significant jump in revenue from operations, which rose to Rs 131.56 crore from Rs 36.07 crore in the preceding quarter.

Why this matters

The jump in top-line performance highlights an improvement in operational activity. However, the company remains in a net loss position for the half-year period (ending September 30, 2026) due to the poor performance in the first quarter of the fiscal year.

Risks to watch

Investors should note the 'Emphasis of Matter' in the auditor's report regarding DGGI search proceedings. The Directorate General of GST Intelligence (Ahmedabad) has issued show cause notices for FY 2020-21, 2021-22, and 2024-25, demanding Rs 2.24 crore in taxes, interest, and penalties. The company has already deposited Rs 1.88 crore under protest. Management maintains that its Input Tax Credit (ITC) claims were valid and does not anticipate a material negative impact on the overall financial position, though legal outcomes remain a monitorable variable.

What to track next

Shareholders should track the final resolution of the ongoing GST tax proceedings, as these may impact cash reserves and future profitability. Monitoring the sustainability of the current revenue levels beyond the September quarter will also be essential for long-term sentiment.