Horizon Reclaim (India) Limited

Board Meeting Outcomes

The Board of Directors:

1. Considered and approved the Unaudited Standalone Financial Results along with Limited Review Report for the half year ended September 30, 2026.

2. Took on record the Monitoring Agency Report issued by CRISIL Ratings Limited for the Half Year ended September 30, 2026.

3. Took on record the Statement of Deviation/Variation in the utilization of IPO proceeds for the Half Year ended September 30, 2026.

Financial Results Overview

Unaudited Standalone Financial Results for H1 FY27 (ended September 30, 2026):

  • Revenue from operations: ₹2,817.98 lakh
  • Other income: ₹8.30 lakh
  • Total income: ₹2,826.28 lakh
  • Profit before tax: ₹412.93 lakh
  • Tax expense: ₹103.95 lakh (Current tax: ₹97.21 lakh, Deferred tax: ₹6.74 lakh)
  • Profit for the period: ₹308.98 lakh
  • Earnings per share (Basic and Diluted): ₹1.58 (face value ₹10 per share)

Comparative Figures:

  • H1 FY26 (ended September 30, 2025): Profit of ₹454.21 lakh
  • Full Year FY26 (ended March 31, 2026): Profit of ₹1,024.65 lakh

Balance Sheet Position (as at September 30, 2026)

  • Total Equity and Liabilities: ₹9,627.77 lakh
  • Share capital: ₹1,951.54 lakh
  • Reserves and surplus: ₹5,790.05 lakh
  • Total assets: ₹9,627.77 lakh
  • Cash and cash equivalents: ₹1,644.47 lakh
  • Long-term loans and advances: ₹625.00 lakh (includes disputed land advance)

Auditor's Qualified Opinion

The joint statutory auditors (Padam Dinesh & Co and V. Singhi & Associates) issued a qualified conclusion regarding an advance of ₹625 lakhs paid during FY 2024-25 for land acquisition.

Key details of the disputed transaction:

  • Advance paid to seller for land acquisition under Agreement to Sell dated May 15, 2024
  • Seller was to clear mortgage with consortium of banks by June 15, 2024, and execute sale deed by June 30, 2024
  • Agreement extended seven times, last extension until February 28, 2026
  • As of September 30, 2026, mortgage not cleared and no communication from seller
  • Agreement terms state seller must refund advance plus ₹300 lakhs interest/penalty if mortgage not cleared
  • Auditors believe provision should be made, which would turn reported profit of ₹308.98 lakh to loss of ₹314.69 lakh
  • Management contends seller is liable and ready to pay, and company is pursuing land acquisition completion

Cash Flow Statement

For half year ended September 30, 2026:

  • Net cash flow from operating activities: (₹64.92) lakh
  • Net cash flow from investing activities: (₹825.61) lakh
  • Net cash flow from financing activities: ₹2,519.97 lakh
  • Net increase in cash: ₹1,629.44 lakh

Operational and Strategic Updates

IPO Details:

  • Completed Initial Public Offer of 5,269,200 equity shares of face value ₹10 each at issue price of ₹103 per share
  • Fresh issue aggregating ₹54.27 crore
  • Listed on BSE SME platform on June 19, 2026
  • Total offer expenses: ₹476.29 lakh (exclusive of taxes), utilized from Securities Premium Account

IPO Proceeds Utilization (as of September 30, 2026):

  • Working capital requirements: ₹600 lakh (fully utilized)
  • Repayment of borrowings: ₹2,670 lakh (fully utilized)
  • Capital expenditure for plant & machinery: ₹0 lakh out of ₹943 lakh allocated
  • General corporate purposes: ₹50.98 lakh out of ₹737.99 lakh allocated
  • Total utilized: ₹3,320.98 lakh
  • Total unutilized: ₹1,630.01 lakh

Business Performance Highlights:

  • Revenue growth of 28.24% compared to H1 FY25 (₹2,197.37 lakh)
  • Rajkot manufacturing unit commenced operations on July 15, 2026
  • Rajkot unit achieved sales of approximately ₹4 crore in October 2026
  • Company holds 25,000 accrued EPR credits
  • Bhagwanpur Unit III expected to become operational by January 2027
  • Import license obtained for importing 10,000 units of raw material

Segment Performance:

  • Bhagwanpur Unit EBITDA margin improved to 24.84% from 22.85% in previous period
  • Bhagwanpur Unit EBITDA increased to ₹584.30 lakh from ₹502.19 lakh (16.35% growth)
  • Rajkot Unit contributed revenue of ₹2,465.33 lakh with operating loss of ₹55.32 lakh (primarily due to ₹80.73 lakh depreciation)
  • No EPR credit revenue recognized in current period (compared to ₹294.45 lakh in H1 FY25)