Mauritius-based Harel Mallac returns to profit as first-half revenue hits $36 million

Harel Mallac Group, the Mauritius-based diversified group, returned to profit in the first half of 2026 as higher revenue and a recovery in its technology and equipment businesses helped offset continued losses in chemicals.

It reported profit after tax of MUR5.45 million ($0.12 million) for the six months ended June 30, compared with a loss of MUR77.32 million ($1.65 million) a year earlier. 

The group also reported a loss of MUR53.62 million ($1.14 million) from continuing operations in the first half of 2025.

Which businesses drove revenue growth?

Revenue from continuing operations rose 12.2 percent to MUR1.68 billion ($36 million), from MUR1.49 billion ($32 million) in the same period last year.

Operating profit before finance costs also recovered, reaching MUR24.72 million ($0.53 million), compared with an operating loss of MUR46.65 million ($1 million) a year earlier.

The improvement was helped by stronger revenue across several businesses, as well as a MUR15.22 million ($0.33 million) gain from the sale of an investment.

Profit attributable to owners of the parent was MUR19.49 million ($0.42 million), compared with a loss of MUR63.62 million ($1.4 million) in the prior-year period.

That translated into earnings per share of MUR1.73 ($0.03) from continuing operations, compared with a loss per share of MUR3.55 ($0.07) in the first half of 2025.

The strongest gains came from the Technology and Equipment & Systems businesses, which helped make up for weaker results in chemicals.

Which segment remained the main drag?

Revenue in the technology segment increased to MUR403 million ($8.62 million) from MUR259 million ($5.54 million). Its net loss narrowed sharply to MUR8 million ($0.17 million), from MUR56 million ($1.2 million) a year earlier.

The Equipment & Systems business also returned to profit. It posted profit after tax of MUR7 million ($0.15 million) on revenue of MUR434 million ($9.3 million), compared with a loss of MUR14 million ($0.3 million) on revenue of MUR400 million ($8.55 million) in the first half of 2025.

The Investment & Corporate segment also performed better, with profit after tax rising to MUR67 million ($1.4 million) from MUR61 million ($1.3 million). Revenue from the segment stood at MUR126 million ($2.7 million).

Chemicals remained the main drag on the group’s results. Revenue in the division increased to MUR889 million ($19 million), from MUR815 million ($17.4 million), but its loss after tax widened to MUR62 million ($1.33 million), from MUR42 million ($0.9 million).

The pressure became more pronounced in the second quarter as higher freight and raw material costs weighed on the business.

What is Harel Mallac’s net asset value?

Harel Mallac said supply chain disruptions and geopolitical tensions in the Middle East added to costs, while weaker demand from local textile manufacturers also affected sales.

Despite those challenges, the improvement in the group’s other businesses was enough to return Harel Mallac to profit for the first six months of the year.

Total group assets stood at MUR5.17 billion ($110.7 million) as of June 30. Net assets per share increased to MUR183.64 ($3.93), from MUR181.74 ($3.89) at the end of 2025.

The results give Harel Mallac a stronger position heading into the second half of the year, although the chemicals business remains an area to watch as freight, raw material costs, and demand conditions continue to affect the group.