Sagar Diamonds Limited Reports Reduced Loss in H1 FY26 Amid Operational Halt
Sagar Diamonds Limited reported a net loss of ₹0.94 lakh for H1 FY26, significantly lower than the ₹182.91 lakh loss in H1 FY25. With operations suspended due to regulatory restrictions, the company generated ₹34.50 lakh from other income while maintaining strong cash reserves of ₹1,902.63 lakh. Total expenses declined 83% to ₹35.44 lakh, demonstrating effective cost management during the operational halt.
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Sagar Diamonds Limited has announced its unaudited financial results for the half year ended September 30, 2025, revealing a significantly reduced net loss compared to the previous year. The company reported a net loss of ₹0.94 lakh for H1 FY26, marking a substantial improvement from the ₹182.91 lakh loss recorded in the corresponding period of the previous year.
Financial Performance Overview
The company's financial performance for the half year reflects the ongoing impact of suspended operations due to regulatory restrictions. With no revenue from operations, Sagar Diamonds relied entirely on other income sources during the period.
| Financial Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹0.00 lakh | ₹0.00 lakh | - |
| Other Income | ₹34.50 lakh | ₹25.29 lakh | +36.4% |
| Total Income | ₹34.50 lakh | ₹25.29 lakh | +36.4% |
| Total Expenses | ₹35.44 lakh | ₹208.20 lakh | -83.0% |
| Net Loss | ₹0.94 lakh | ₹182.91 lakh | -99.5% |
Expense Management and Cost Structure
The company demonstrated significant cost control during the period, with total expenses declining dramatically to ₹35.44 lakh from ₹208.20 lakh in H1 FY25. The major expense components included changes in inventories of finished goods and work-in-progress at ₹15.53 lakh, and depreciation and amortisation expenses of ₹19.91 lakh. Employee benefits expenses were minimal, while finance costs remained at zero during the period.
Balance Sheet Position
Sagar Diamonds maintained a stable balance sheet position as of September 30, 2025. The company's total assets stood at ₹3,676.91 lakh, representing a marginal increase from ₹3,643.03 lakh as of March 31, 2025.
| Balance Sheet Items | Sep 30, 2025 | Mar 31, 2025 |
|---|---|---|
| Share Capital | ₹1,264.38 lakh | ₹1,264.38 lakh |
| Reserves & Surplus | ₹1,929.19 lakh | ₹1,930.12 lakh |
| Total Shareholders' Fund | ₹3,193.57 lakh | ₹3,194.50 lakh |
| Cash and Cash Equivalents | ₹1,902.63 lakh | ₹1,874.76 lakh |
| Total Assets | ₹3,676.91 lakh | ₹3,643.03 lakh |
Cash Flow and Liquidity
The company's cash position improved during the half year, with cash and cash equivalents increasing to ₹1,902.63 lakh from ₹1,874.76 lakh at the beginning of the period. Net cash flow from operating activities was negative at ₹6.63 lakh, while investing activities generated positive cash flow of ₹34.50 lakh, primarily from interest received.
Operational Status and Regulatory Challenges
According to the company's disclosure, operations remain halted due to restrictions imposed by regulators. The financial results have been prepared based on net realisable value, with the impact reflected in the profit and loss statement. The company indicated that it will take time to restart operations and is awaiting necessary consents from regulators to resume business activities.
Earnings Per Share Performance
The company's earnings per share improved significantly, with basic and diluted EPS at ₹-0.01 for H1 FY26 compared to ₹-1.45 in the corresponding period of the previous year. This improvement reflects the reduced losses during the current period despite the absence of operational revenue.
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