Devoted Construction Limited Reports Net Loss of ₹7.61 Lakhs in H1 FY26
Devoted Construction Limited reported a net loss of ₹7.61 lakhs for H1 FY26 compared to ₹1.85 lakhs loss in H1 FY25, despite generating ₹10.00 lakhs in operational revenue for the first time in recent periods. Total expenses increased significantly to ₹17.61 lakhs, primarily due to inventory changes worth ₹15.74 lakhs. The company filed revised financial results to correct Trade Payables bifurcation as required under accounting standards.
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Devoted Construction Limited has reported a net loss of ₹7.61 lakhs for the half year ended September 30, 2025, marking a significant increase from the ₹1.85 lakhs loss recorded in the corresponding period of the previous financial year. Despite generating its first operational revenue in recent periods, the company's financial performance was impacted by higher expenses.
Financial Performance Overview
The company's financial results for H1 FY26 show mixed developments, with the emergence of operational revenue offset by increased costs:
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹10.00 lakhs | ₹0.00 lakhs | New |
| Total Expenses | ₹17.61 lakhs | ₹1.85 lakhs | +852% |
| Net Loss | ₹7.61 lakhs | ₹1.85 lakhs | +311% |
| Basic & Diluted EPS | ₹(0.25) | ₹(0.06) | -317% |
The company recorded revenue from operations of ₹10.00 lakhs during H1 FY26, representing the first operational income in recent reporting periods. However, total expenses surged to ₹17.61 lakhs compared to ₹1.85 lakhs in the previous year's corresponding period.
Expense Analysis
The significant increase in expenses was primarily driven by changes in inventories, which accounted for ₹15.74 lakhs during the current period. Employee benefits expenses remained relatively stable at ₹1.85 lakhs compared to ₹1.80 lakhs in H1 FY25. Other expenses decreased substantially to ₹0.01 lakhs from ₹0.05 lakhs in the previous year.
Balance Sheet Position
As of September 30, 2025, the company's balance sheet showed total assets and liabilities of ₹14,881.70 lakhs, slightly down from ₹14,885.04 lakhs as of March 31, 2025. The company maintains substantial inventories valued at ₹14,765.90 lakhs, representing FSI (Floor Space Index) acquired at historical cost.
Regulatory Compliance
Devoted Construction Limited filed revised financial results on December 18, 2025, to rectify a discrepancy in the standalone results. The revision was necessary to include the required bifurcation of Trade Payables as per Accounting Standard and Division I Format requirements. The company's statutory auditors, M/s KRA & Associates, issued an unmodified audit opinion on the standalone unaudited financial results.
Key Financial Highlights
- Paid-up equity share capital remained stable at ₹300.11 lakhs
- Cash and cash equivalents decreased to ₹1.16 lakhs from ₹2.09 lakhs
- Long-term borrowings stood at ₹12,674.95 lakhs
- Trade receivables increased to ₹17.48 lakhs from ₹5.68 lakhs
The Board of Directors approved these results at their meeting held on November 14, 2025, following review and recommendation by the Audit Committee.
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