Baroda Rayon Q1 Results: Net profit rises 160% YoY on exceptional gain
Baroda Rayon's Q1FY27 net profit surged 160% YoY to ₹1,847.3 lakh, driven by a ₹1,200 lakh exceptional gain from forfeited investor funds. Operational revenue fell 19.6% to ₹1,798 lakh. Excluding the one-time gain, core profit before tax declined slightly to ₹647.3 lakh from ₹710.2 lakh in Q1FY26. Total assets rose to ₹76,322.8 lakh.
*this image is generated using AI for illustrative purposes only.
Baroda Rayon Corporation Limited reported a significant rise in net profit for the first quarter of FY27, primarily driven by a substantial non-recurring gain. The company posted a standalone net profit of ₹1,847.3 lakh for the quarter ended June 30, 2026, compared to ₹710.2 lakh in the corresponding period of FY26. This represents a year-on-year increase of over 160%. However, operational revenue contracted during the same period.
The Baroda Rayon Corporation Ltd recorded total revenue of ₹1,888.1 lakh in Q1FY27, down from ₹2,255.8 lakh in Q1FY25. Revenue from operations fell 19.6% to ₹1,798 lakh, while other income rose sharply to ₹90.1 lakh from ₹19.8 lakh in the previous year. The Board of Directors approved these unaudited financial results in a meeting held on August 14, 2026.
Key Financial Metrics
| Metric | Q1FY27 (₹ lakh) | Q1FY26 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 1,798.00 | 2,236.00 | -19.6% |
| Other Income | 90.09 | 19.82 | +354.5% |
| Total Revenue | 1,888.09 | 2,255.82 | -16.3% |
| Profit Before Tax | 1,847.27 | 710.23 | +160.1% |
| Net Profit | 1,847.27 | 710.23 | +160.1% |
| EPS (Basic, incl. exceptional) | ₹8.06 | ₹3.10 | +160.0% |
Segment Performance
The real estate segment contributed ₹1,812.9 lakh to segment revenue, a decline from ₹2,244 lakh in Q1FY25. Segment results for real estate stood at ₹577.9 lakh, down from ₹747.9 lakh previously. The textile segment, which has been operationally stalled since August 2008, reported revenue of ₹75.2 lakh, entirely comprising textile-related other income.
Total assets increased to ₹76,322.8 lakh as of June 30, 2026, from ₹73,228.7 lakh at the end of FY26. Total liabilities rose to ₹35,024.3 lakh from ₹33,777.5 lakh. Real estate assets grew to ₹73,979.3 lakh, while liabilities in this segment reached ₹22,012.7 lakh.
What the Numbers Show
The reported profit growth is not reflective of core operational performance. An exceptional item of ₹1,200 lakh accounted for approximately 65% of the pre-tax profit. This gain arose from the forfeiture of funds received from strategic investors who failed to introduce capital under the Board for Industrial and Financial Reconstruction (BIFR) sanctioned rehabilitation scheme. Excluding this one-time gain, the profit before exceptional items and tax was ₹647.3 lakh, slightly lower than the ₹710.2 lakh recorded in Q1FY26. Consequently, the earnings per share (EPS) before exceptional items declined to ₹2.83 from ₹3.10 in the prior year.
Auditor Review and Notes
Kansariwala & Chevli, the statutory auditors, conducted a limited review of the results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. They expressed no modifications to their conclusion. The company noted that it has no tax liability for the quarter due to unabsorbed depreciation and brought-forward business losses.
Historical Stock Returns for Baroda Rayon
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.23% | -3.01% | -1.51% | +7.02% | -10.96% | +2,577.80% |
How will the reliance on non-recurring gains impact Baroda Rayon's valuation metrics and investor sentiment in upcoming quarters?
What specific strategies is management implementing to reverse the 19.6% decline in core operational revenue from the real estate segment?
Given the textile segment has been stalled since 2008, are there any new proposals or timelines for its rehabilitation or divestment?
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