Hemo Organic Limited reported a net profit of ₹0.53 lakh for the quarter ended September 30, 2026, marking a turnaround from a loss of ₹3.09 lakh in the corresponding quarter last year. The company recorded revenue from operations of ₹142.90 lakh, a significant increase from ₹0.01 lakh in Q2FY26.

Despite the return to profitability, the statutory auditor, V S S B & Associates, issued a qualified opinion on the financial results. The qualification stems from the company's failure to provide balance confirmations or details for trade receivables and trade payables, preventing the auditor from verifying these balances and the nature of transactions.

Financial Performance Snapshot

The company's standalone performance for the second quarter of FY27 shows a sharp recovery in top-line revenue and a swing to positive bottom-line results compared to the prior year period.

Balance Sheet and Cash Flow Dynamics

As of September 30, 2026, Hemo Organic held cash and cash equivalents of ₹1.28 lakh, up from ₹1.09 lakh as of March 31, 2026. Trade receivables stood at ₹235.76 lakh, showing a marginal decrease from ₹238.86 lakh at the end of the previous fiscal year.

The company's equity share capital increased to ₹686.59 lakh from ₹346.59 lakh in the previous year, reflecting recent capital infusion. Other equity remained negative at (₹361.44 lakh), an improvement from (₹439.55 lakh) as of March 2026, indicating a reduction in accumulated losses.

Auditor Qualification and Compliance

The limited review report by V S S B & Associates highlighted a critical compliance gap. The auditors stated they were unable to confirm the balances of trade receivables and trade payables due to the absence of balance confirmations. This qualification is material for investors assessing the reliability of the working capital position.

The Board of Directors approved these unaudited standalone financial results at a meeting held on October 17, 2026. The results were prepared in accordance with Indian Accounting Standards (Ind AS) 34 and Regulation 33 of SEBI (LODR) Regulations, 2015.

What the Numbers Show

A divergence exists between the reported profitability and the operational cash flow. While the company posted a net profit of ₹0.53 lakh for the quarter, the half-year cash flow statement reveals a net cash outflow from operating activities of ₹182.72 lakh. This outflow was driven largely by a reduction in trade payables (₹136.90 lakh) and an increase in other current assets (₹41.73 lakh), suggesting that the accounting profit did not translate into immediate liquidity generation during the first half of FY27.

Pratibha Sharma has withdrawn her consent to act as the Company Secretary and Compliance Officer of Hemo Organic Limited. Consequently, the proposed appointment for this role has not taken effect, leaving the position vacant.

The company informed BSE Limited on October 14, 2026, regarding the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sharma confirmed that there were no material reasons for her decision to withdraw consent from the said position.

Regulatory compliance and next steps

Hemo Organic stated it will take necessary steps to appoint a suitable candidate for the Company Secretary and Compliance Officer role. This process will adhere to the applicable provisions of the Companies Act, 2013, and the SEBI Listing Regulations. The company intends to intimate the stock exchange about the new appointment in due course.

Disclosure details

The following table summarizes the key particulars disclosed in the regulatory filing:

The disclosure was made pursuant to SEBI circular guidelines dated January 30, 2026, ensuring transparency in corporate governance changes.