Simplex Realty Limited , a prominent player in the property development sector, has announced its unaudited financial results for the second quarter and first half of fiscal year 2026, ending September 30, 2025. The company's performance shows a mixed picture, with a notable decline in profitability compared to the same period last year.

Key Financial Highlights

Quarterly Performance

For Q2 FY2026, Simplex Realty reported:

• Total income of ₹201.19 lakhs, up from ₹186.33 lakhs in Q2 FY2025
• A net loss of ₹25.19 lakhs, compared to a profit of ₹17.96 lakhs in the corresponding quarter last year

Half-Yearly Performance

For H1 FY2026, the company recorded:

• Total income of ₹554.76 lakhs, down from ₹752.65 lakhs in H1 FY2025
• A net loss of ₹137.92 lakhs, against a profit of ₹114.65 lakhs in the previous year's first half

Expense Analysis

The company's total expenses for Q2 FY2026 stood at ₹234.99 lakhs, up from ₹167.42 lakhs in Q2 FY2025. This increase in expenses, particularly in employee benefits and finance costs, appears to have impacted the bottom line significantly.

Balance Sheet Overview

As of September 30, 2025:

• Total assets stood at ₹12,176.26 lakhs, down from ₹14,375.20 lakhs at the end of FY2025
• Total equity decreased to ₹11,937.50 lakhs from ₹12,074.09 lakhs

Cash Flow Position

The company's cash and cash equivalents decreased to ₹113.13 lakhs as of September 30, 2025, compared to ₹346.32 lakhs at the beginning of the fiscal year. This reduction is primarily attributed to:

• Repayment of borrowings amounting to ₹2,000.00 lakhs
• Net cash used in operating activities of ₹1,247.60 lakhs

Financial Strategy

While specific management commentary is not provided in the financial results, the figures suggest that Simplex Realty is navigating through a challenging period. The significant reduction in borrowings indicates a focus on debt reduction, which may be part of a broader financial strategy.

Sector Overview

The property development sector continues to face headwinds, as reflected in Simplex Realty's results. The company's performance in the coming quarters will be crucial in determining its trajectory for the full fiscal year.

Investors and stakeholders will likely be watching closely for any strategic initiatives or market developments that could impact the company's financial health and operational performance in the near to medium term.

Simplex Realty Limited , a prominent player in the property development sector, has reported a challenging first quarter, marked by a significant decline in revenue and a shift from profit to loss. The company's Board of Directors approved the unaudited financial results in a meeting held on August 6.

Financial Performance

The standalone financial results for Q1 reveal:

The company's revenue from operations saw a substantial decrease, dropping to ₹250.16 lakhs in Q1 from ₹400.76 lakhs in the previous quarter and ₹479.53 lakhs in the same quarter last year. This represents a 37.6% quarter-on-quarter decline and a 47.8% year-on-year decrease.

Despite the revenue contraction, Simplex Realty managed to report a profit before tax of ₹51.02 lakhs. However, after accounting for tax expenses, including a significant deferred tax liability of ₹155.52 lakhs, the company posted a net loss of ₹112.73 lakhs for the quarter.

Consolidated Results

On a consolidated basis, the results mirror the standalone performance:

• Total income (including other income): ₹353.57 lakhs
• Loss after tax: ₹113.83 lakhs

This consolidated loss contrasts sharply with the profit of ₹96.25 lakhs reported in the same period last year.

Strategic Developments

In addition to the financial results, the Board approved a supplementary agreement with its subsidiary for project assignment. The details of this agreement are expected to be disclosed upon execution, as per regulatory requirements.

Segment Information

Simplex Realty continues to operate solely in the property development segment, with no additional reportable segments under Ind AS 108.

Auditor's Review

The statutory auditors, Khandelwal & Mehta LLP, conducted a limited review of the financial results. They highlighted concerns regarding two associate companies:

• Both associates have accumulated losses and fully eroded net worth.
• This situation raises uncertainties about their ability to continue as going concerns.

However, the management has prepared the financial results of both associate companies on a going concern basis, indicating their confidence in future business prospects.

Looking Ahead

While the Q1 results present challenges for Simplex Realty, the approval of the subsidiary project assignment suggests that the company is actively pursuing strategic initiatives. Stakeholders will be keenly watching how these moves, along with potential improvements in the property market, might influence the company's performance in the coming quarters.

Investors and market analysts will likely be looking for more details on the company's strategies to address the revenue decline and return to profitability in the subsequent quarters.