NewsEarningsResourceful Automobile Reports Profit Turnaround in H1 FY26, Nearly Exhausts IPO FundsResourceful Automobile Reports Profit Turnaround in H1 FY26, Nearly Exhausts IPO Funds
Resourceful Automobile Limited (RAL) has posted a net profit of ₹21.27 lacs for H1 FY26, compared to a loss of ₹68.38 lacs in H1 FY25. Revenue from operations remained stable at ₹811.79 lacs. The company's EPS improved to ₹0.80 from ₹(2.57). RAL has nearly exhausted its IPO proceeds of ₹1,134.02 lacs, with only ₹1.66 lacs remaining. Total assets increased to ₹3,209.26 lacs, and shareholders' funds stood at ₹1,705.18 lacs as of September 30, 2025.
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Resourceful Automobile Limited (RAL) has reported a significant turnaround in its financial performance for the first half of the fiscal year 2026, marking a shift from losses to profits. The company, which recently went public through an SME IPO, has also nearly exhausted its IPO proceeds, indicating rapid deployment of funds.
Financial Performance
For the six months ended September 30, 2025, RAL posted a net profit of ₹21.27 lacs, a substantial improvement from the loss of ₹68.38 lacs reported in the same period last year. This turnaround reflects a positive shift in the company's operational efficiency and market performance.
The company's revenue from operations for H1 FY26 stood at ₹811.79 lacs, slightly lower than the ₹812.20 lacs reported in H1 FY25.
Key Financial Metrics
| Particular | H1 FY26 (₹ in lacs) | H1 FY25 (₹ in lacs) |
|---|---|---|
| Revenue from Operations | 811.79 | 812.20 |
| Net Profit/(Loss) | 21.27 | (68.38) |
| Earnings per Share (Basic) | 0.80 | (2.57) |
The company's earnings per share (EPS) improved to ₹0.80 for H1 FY26, compared to a negative EPS of ₹(2.57) in the same period last year, reflecting the positive impact of the profit turnaround on shareholder value.
IPO Fund Utilization
RAL has made significant progress in utilizing the funds raised through its SME IPO. Out of the total ₹1,134.02 lacs raised, the company has deployed ₹1,132.36 lacs, leaving only ₹1.66 lacs unutilized. The funds were allocated as follows:
- Working capital requirements: ₹552.26 lacs (fully utilized)
- Repayment of debts: ₹455.90 lacs (fully utilized)
- General corporate purposes: ₹124.20 lacs utilized out of ₹125.86 lacs allocated
The remaining ₹1.66 lacs is currently held in an escrow account with Axis Bank Ltd., and the company is in the process of utilizing these funds for general corporate purposes.
Balance Sheet Highlights
As of September 30, 2025, RAL reported total assets of ₹3,209.26 lacs, up from ₹2,550.68 lacs as of March 31, 2025. The company's shareholders' funds stood at ₹1,705.18 lacs, indicating a strong equity base.
Conclusion
Resourceful Automobile Limited's financial results for H1 FY26 demonstrate a significant improvement in profitability and efficient utilization of IPO funds. The company's transition from losses to profits, coupled with the near-complete deployment of IPO proceeds, indicates positive momentum in its operations and financial management. These developments may be viewed as encouraging signs for the company's performance in the automobile accessories and spare parts sector.
Historical Stock Returns for Resourceful Automobile
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +14.92% | +18.11% | +11.38% | -8.18% | +39.26% | -41.07% |
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