Raghunath Tobacco Limited, a company operating in trading/agency business and real estate development segments, has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing a substantial increase in profitability despite minimal revenue from operations.

Quarterly Performance Highlights

• Profit Surge: The company reported a profit of Rs. 49.33 lakhs for Q2 FY2026, a significant increase from Rs. 15.45 lakhs in the same quarter last year.
• Revenue: Revenue from operations remained minimal at Rs. 0.50 lakhs for the quarter.
• Earnings Per Share (EPS): The company's EPS stood at Rs. 0.33 for the quarter.

Half-Yearly Performance

• Six-Month Profit: For the six-month period, profit increased to Rs. 93.13 lakhs from Rs. 12.46 lakhs in the previous year, marking a substantial year-over-year growth.

Financial Position and Concerns

While the profit figures show improvement, the auditors have raised several concerns:

1. Outstanding Debtors: Rs. 47.36 lakhs in outstanding debtors, with Rs. 38.54 lakhs overdue for more than six months without provision.
2. Accounting Standards: Non-compliance with accounting standards for equity investments.
3. Asset Verification: Lack of physical verification of inventory and fixed assets.

Segment Operations

RTCL Limited operates in two main segments:

1. Trading/Agency Business
2. Real Estate Development

Auditor's Observations

The auditors have highlighted several issues that require attention:

1. Valuation of Investments: The company has recognized non-current investments in equity shares at cost, which deviates from the Ind AS 109 "Financial Instruments" standard.
2. Debtor Provisions: No provision has been made for long-standing debtors, particularly the Rs. 38.54 lakhs overdue for more than six months.
3. Inventory Valuation: The auditors were unable to comment on the quantity, pricing, and valuation method of inventory.
4. Asset Verification: Physical verification of Property, Plant & Equipment could not be confirmed.

Conclusion

While RTCL Limited has shown remarkable profit growth in Q2 FY2026, the minimal operational revenue and the auditors' concerns highlight potential areas for improvement in financial management and reporting practices. Investors and stakeholders may need to seek further clarification on these issues and monitor the company's actions to address the auditors' observations in the coming quarters.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.

Raghunath Tobacco (RTCL Limited), a company engaged in trading/agency business and real estate development, has reported exceptional financial performance for the first quarter of the fiscal year 2026, ending June 30, 2025.

Financial Highlights

• Revenue from operations surged 131.80% to ₹104.88 lakhs, compared to ₹45.25 lakhs in the same quarter last year.
• Net profit jumped 410.30% to ₹93.13 lakhs from ₹18.25 lakhs year-on-year.
• Earnings per share increased to ₹0.78 from ₹0.15.

Segment Performance

The Trading/Agency Business segment emerged as the primary revenue driver for the quarter:

• Generated revenue of ₹119.94 lakhs
• Reported segment profit of ₹98.91 lakhs

The Real Estate Development segment's performance was not separately reported for the quarter.

Consolidated Results

On a consolidated basis, RTCL Limited reported:

• Total income of ₹148.53 lakhs
• Profit before tax of ₹125.54 lakhs
• Net profit after taxes and share of profit from associates of ₹95.63 lakhs

Management Commentary

Ajay Kumar Jain, Whole Time Director of RTCL Limited, stated, "We are pleased with the company's strong performance in the first quarter of FY2026. The significant growth in revenue and profitability demonstrates the effectiveness of our business strategies and the robust demand for our services."

Shareholding Pattern

As of June 30, 2025:

Auditor's Note

The company's auditors, V V G & CO, noted that RTCL Limited recognized non-current investments in equity shares at cost instead of fair value as required by accounting standards. The impact of this on financial statements, including "Non-current Investments," "Other Equity," "Other Comprehensive Income," and "Deferred Tax," is not ascertainable.

Conclusion

RTCL Limited's impressive first-quarter results for FY2026 showcase substantial growth in both revenue and profitability. The company's trading/agency business segment has performed exceptionally well, contributing significantly to the overall financial success. However, investors should note the auditor's observation regarding the valuation of non-current investments and its potential impact on financial statements.

The company's board meeting to approve these results was held on August 11, 2025, starting at 3:00 PM and concluding at 4:25 PM.

Note: All financial figures are in Indian Rupees (₹) and in lakhs unless otherwise stated.