Aakaar Medical swings to Rs 3.54 crore first-half profit as sales rise

Aakaar Medical Technologies Limited reported unaudited profit after tax of Rs 3.54 crore for the half year ended September 30, 2026, reversing a Rs 78.41 lakh loss a year earlier. Revenue from operations rose 73% to Rs 43.72 crore from Rs 25.32 crore, led by aesthetic products, which supplied Rs 40.27 crore of sales.

How did Aakaar Medical’s first-half earnings change?

Aakaar Medical returned to profit in the half year ended September 30, 2026, reporting Rs 3.54 crore after tax against a Rs 78.41 lakh loss in the corresponding 2025 period. Profit before tax was Rs 4.82 crore, compared with a pre-tax loss of Rs 1.02 crore. Basic and diluted earnings per share were Rs 2.50, compared with a loss per share of Rs 0.63.

Revenue from operations increased to Rs 43.72 crore from Rs 25.32 crore, while total income rose to Rs 43.99 crore from Rs 25.62 crore. Other income declined to Rs 26.80 lakh from Rs 29.71 lakh. The change in the result therefore coincided with higher operating revenue rather than an increase in other income.

The Rs 3.54 crore first-half profit was slightly more than half of the Rs 6.64 crore profit Aakaar Medical reported for the year ended March 31, 2026. Its Rs 43.72 crore September-half revenue was about 65% of the preceding full-year revenue of Rs 66.96 crore. The results filing does not disclose management guidance or a target for the remaining half of the year.

Which segment drove Aakaar Medical’s revenue increase?

Aesthetic products drove Aakaar Medical’s revenue increase, generating Rs 40.27 crore in the half year ended September 30, 2026, up from Rs 21.97 crore a year earlier. The Rs 18.30 crore rise in this segment accounted for nearly all of the Rs 18.40 crore increase in total revenue. Aesthetic devices and device consumables generated Rs 3.45 crore, compared with Rs 3.35 crore in the prior-year half.

Aesthetic products represented about 92% of total revenue in the 2026 half year, compared with about 87% in the 2025 half year. Devices and consumables accounted for about 8% of revenue, down from about 13%, although their sales increased by Rs 10 lakh. This means the reported sales mix became more concentrated in aesthetic products.

The aesthetic-products segment reported profit of Rs 17.58 crore, compared with Rs 9.77 crore in the prior-year half. The devices and consumables segment reported Rs 3.68 crore of segment profit, up from Rs 1.68 crore. The filing reported segment operating profit of Rs 22.47 crore before employee benefits, other expenses, miscellaneous income and finance costs in the reconciliation.

What costs and taxes affected Aakaar Medical’s profit?

Total expenses were Rs 39.17 crore in the September 2026 half year, compared with Rs 26.65 crore a year earlier. Purchases of stock-in-trade increased to Rs 26.34 crore from Rs 13.97 crore, the largest named expense line. Employee benefit expense rose to Rs 8.07 crore from Rs 7.26 crore, and other expenses increased to Rs 8.97 crore from Rs 6.85 crore.

Changes in inventories reduced expenses by Rs 6.19 crore in the latest half year, compared with a reduction of Rs 4.56 crore in the corresponding 2025 period. Finance costs declined to Rs 80.85 lakh from Rs 1.04 crore, while depreciation and amortisation rose to Rs 6.81 lakh from Rs 4.91 lakh. Reported operating profit was Rs 5.63 crore, compared with Rs 1.74 lakh a year earlier.

Tax expense was Rs 1.28 crore in the September 2026 half year, after a tax credit of Rs 23.93 lakh in the previous corresponding period. Current tax was Rs 1.32 crore, the short or excess tax provision was Rs 3.22 lakh, and deferred tax expense was negative Rs 6.86 lakh. The tax charge reduced the Rs 4.82 crore pre-tax profit to Rs 3.54 crore after tax.

What changed in Aakaar Medical’s balance sheet and cash flow?

Aakaar Medical’s total assets were Rs 88.50 crore at September 30, 2026, compared with Rs 79.42 crore at March 31, 2026. Trade receivables increased to Rs 54.21 crore from Rs 37.23 crore, while inventories rose to Rs 25.94 crore from Rs 19.75 crore. Cash and bank balances were Rs 1.06 crore, down from Rs 16.24 crore at the financial-year end.

Total liabilities increased to Rs 30.41 crore at September 30, 2026 from Rs 24.87 crore at March 31, 2026. Short-term borrowings were Rs 18.89 crore, compared with Rs 18.53 crore. Trade-payable dues to micro and small enterprises rose to Rs 4.24 crore from Rs 70.06 lakh, while reserves and surplus increased to Rs 43.92 crore from Rs 40.38 crore.

Operating activities used Rs 14.67 crore of cash during the half year ended September 30, 2026. The cash-flow statement recorded a Rs 16.99 crore increase in trade receivables and a Rs 6.19 crore increase in inventories, partly offset by a Rs 4.19 crore increase in trade payables. Net cash used in investing activities was Rs 5.39 lakh and financing activities used Rs 35.51 lakh, leaving cash and cash equivalents of Rs 1.06 crore.

Aakaar Medical also disclosed that it had utilised all Rs 27 crore of initial public offering, or IPO, proceeds by September 30, 2026. The company allocated Rs 20.35 crore to working capital, Rs 3.29 crore to general corporate purpose and Rs 3.36 crore to issue expenses including goods and services tax. The filing reported no unutilised IPO proceeds.

Conclusion

Aakaar Medical’s half-year filing shows a shift from a Rs 78.41 lakh loss to a Rs 3.54 crore profit as revenue rose 73% to Rs 43.72 crore. Aesthetic products were the principal contributor, generating Rs 40.27 crore of revenue and Rs 17.58 crore of segment profit during the September 2026 half year.

The next financial results will show whether revenue growth translates into collections and cash generation, after trade receivables rose to Rs 54.21 crore and operating activities used Rs 14.67 crore in the first half. The filing also shows that the full Rs 27 crore IPO proceeds had been deployed by September 30, 2026, principally towards working capital.