ABM International returns to Rs 1.14 crore first-half PBT

ABM International Limited reported consolidated profit before tax of Rs 1.14 crore for the half year ended September 30, 2026, reversing a Rs 49.78 lakh loss a year earlier, as total expenses fell to Rs 23.86 crore from Rs 25.49 crore while total revenue declined by Rs 17,000 to Rs 25.00 crore.

How did ABM International return to first-half profit?

ABM International returned to first-half profit because its reported expenses declined by Rs 1.64 crore while total revenue was effectively unchanged in the half year ended September 30, 2026. Revenue from operations rose to Rs 24.77 crore from Rs 24.76 crore in the corresponding prior-year half, but other income fell to Rs 22.51 lakh from Rs 23.87 lakh. Consequently, total revenue was Rs 25.00 crore in both periods after conversion, with the underlying reported decline being Rs 17,000.

Profit before exceptional and extraordinary items and tax was Rs 1.14 crore, compared with a Rs 49.34 lakh loss in the earlier half. ABM International then recorded a Rs 61,000 share of loss from associates, against a Rs 44,000 loss a year earlier, resulting in consolidated profit before tax of Rs 1.14 crore versus a Rs 49.78 lakh loss. The limited-review report identifies Prisha Promoters Private Limited as the entity included in the consolidated results.

A deferred-tax credit of Rs 28.73 lakh took profit from continuing operations to Rs 84.85 lakh, compared with a Rs 49.93 lakh loss for the half year ended September 30, 2025. Total comprehensive income was also Rs 84.85 lakh because the statement reported no other comprehensive income for either of the two half-year periods.

What changed in ABM International's costs during the half year?

ABM International's expense reduction was principally associated with the inventory-change line, which moved to a Rs 2.58 crore reduction in expenses from a Rs 1.91 crore expense in the prior-year half. Purchases of stock-in-trade increased to Rs 25.75 crore from Rs 22.84 crore, but the inventory movement more than offset that increase within the reported cost structure.

Other expenses declined to Rs 26.59 lakh from Rs 36.51 lakh, while employee-benefits expense rose to Rs 29.98 lakh from Rs 26.08 lakh. Finance costs increased to Rs 10.01 lakh from Rs 9.45 lakh, and depreciation and amortisation remained Rs 2 lakh in both periods. These lines left profit before the associate loss at Rs 1.14 crore, compared with a loss before the associate loss of Rs 49.34 lakh a year earlier.

How did ABM International's September quarter compare with June?

ABM International remained profitable before tax in the September 2026 quarter, but the Rs 45.56 lakh result was below the Rs 68.02 lakh reported in the June 2026 quarter. The September quarter had reported revenue from operations of Rs 14.32 crore, compared with Rs 10.45 crore in June and Rs 10.46 crore in the September 2025 quarter.

The September 2026 quarter's consolidated profit after tax was Rs 16.83 lakh, compared with Rs 68.02 lakh in June 2026 and a Rs 40.78 lakh loss in September 2025. The difference between September-quarter profit before tax and profit after tax reflects the Rs 28.73 lakh deferred-tax charge recorded in that quarter. Basic and diluted earnings per share were Rs 0.18 for September, after Rs 0.72 in June.

For the six months, basic and diluted earnings per share were Rs 0.90, compared with a loss per share of Rs 0.53 in the corresponding period. Paid-up equity share capital was Rs 9.41 crore at September 30, 2026, unchanged from March 31, 2026 and the prior-year half. The filing also states that ABM International has no reportable separate segment, so it does not allocate the Rs 24.77 crore operating revenue across business lines.

How did ABM International's balance sheet and cash flows change?

ABM International's total assets increased to Rs 26.34 crore at September 30, 2026 from Rs 23.72 crore at March 31, 2026. Current assets rose to Rs 16.31 crore from Rs 13.89 crore, including inventories of Rs 4.78 crore against Rs 2.46 crore and trade receivables of Rs 3.65 crore against Rs 1.79 crore.

Cash and cash equivalents fell to Rs 2.76 crore at September 30 from Rs 4.52 crore at the start of the financial year. The consolidated cash-flow statement reported Rs 5.55 crore used in operating activities during the half year, after a Rs 2.31 crore inventory increase, a Rs 1.85 crore increase in trade receivables and a Rs 2.01 crore reduction in trade payables.

Financing cash flow included Rs 3.84 crore of proceeds from borrowings, which partly offset the operating outflow and contributed to a Rs 1.76 crore net decrease in cash. Current borrowings stood at Rs 12.20 crore on September 30, up from Rs 8.36 crore on March 31, while trade payables declined to Rs 98.78 lakh from Rs 3.00 crore. Shareholders' funds increased to Rs 12.85 crore from Rs 11.48 crore, including other equity of Rs 3.44 crore against Rs 2.07 crore.

What review did ABM International's first-half results receive?

ABM International's consolidated results for the quarter and half year ended September 30, 2026 received a limited review from Salarpuria & Partners rather than an audit. In its November 13, 2026 report, the auditor said nothing had come to its attention that caused it to believe the statement did not disclose the information required under Regulation 33 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

The Board approved the unaudited results on November 13, 2026 after Audit Committee review. The financial statements were prepared under Indian Accounting Standard 34, Interim Financial Reporting, and the auditor noted that a review is substantially narrower in scope than an audit. For context, ABM International reported a consolidated loss before tax of Rs 2.31 crore for the year ended March 31, 2026.

Conclusion

ABM International's first-half result moved from a Rs 49.78 lakh consolidated loss before tax to a Rs 1.14 crore profit before tax without material revenue growth. The filing attributes the change in reported outcome to expenses falling below revenue, notably through the inventory-change line, while the September-quarter profit before tax was lower than the June-quarter figure.

The unresolved issue for subsequent results is whether the higher working-capital balances can moderate: inventories rose by Rs 2.31 crore, receivables by Rs 1.85 crore and current borrowings by Rs 3.84 crore between March 31 and September 30, 2026, while cash declined by Rs 1.76 crore. The filing discloses no revenue target, business plan or reportable segment breakdown to clarify how those balances may develop.