ABM Knowledgeware Limited Q2 profit falls to Rs 1.08 crore

ABM Knowledgeware reported unaudited consolidated profit of Rs 1.08 crore for the quarter ended September 30, 2026, down from Rs 1.40 crore a year earlier, as a Rs 91.37 lakh loss at subsidiary Instasafe Technologies Private Limited and a Rs 77.54 lakh share of associate loss reduced the group result.

How did ABM Knowledgeware perform in Q2 2026?

ABM Knowledgeware’s consolidated revenue from operations was Rs 26.70 crore in the quarter ended September 30, 2026, up from Rs 22.08 crore in the September 2025 quarter and Rs 26.17 crore in the preceding June quarter. Total income reached Rs 27.53 crore, compared with Rs 23.32 crore a year earlier and Rs 28.67 crore in the previous quarter.

Consolidated profit before tax and exceptional items was Rs 2.67 crore in Q2 2026, versus Rs 3.33 crore in Q2 2025. After recognising the Rs 77.54 lakh share of loss from the associate, profit before tax was Rs 1.88 crore, and reported profit after a Rs 78.89 lakh tax expense was Rs 1.08 crore.

Basic and diluted earnings per share, not annualised, were Rs 0.90 in Q2 2026, compared with Rs 1.37 in the June 2026 quarter and Rs 1.01 in the quarter ended September 30, 2025. Total comprehensive income was Rs 1.05 crore after an other comprehensive loss of Rs 4.13 lakh.

Why was ABM Knowledgeware’s consolidated profit below standalone profit?

ABM Knowledgeware’s standalone net profit was Rs 2.78 crore in Q2 2026, compared with consolidated profit of Rs 1.08 crore. The consolidated accounts include the holding company, subsidiary Instasafe Technologies Private Limited and associate Scanit Technologies Inc., whereas the standalone result covers the parent company.

Instasafe recorded revenue of Rs 1.49 crore and a net loss after tax of Rs 91.37 lakh in the September 2026 quarter, according to the auditor’s review report. Its reported net profit after tax for the half year ended September 30, 2026 was Rs 1.38 crore, meaning its first-half outcome remained profitable despite the Q2 loss.

Scanit reduced Q2 consolidated earnings through ABM Knowledgeware’s Rs 77.54 lakh share of associate loss, compared with a Rs 2.21 lakh share of loss in the year-earlier quarter. The associate loss was Rs 1.57 crore for the half year ended September 30, 2026, against Rs 1.59 crore in the corresponding prior-year half.

The quarter’s profit attributable to owners was Rs 1.81 crore, while the non-controlling interest recorded a Rs 72.85 lakh loss. This allocation differs from group profit of Rs 1.08 crore because the consolidated statement separately presents the interests of owners and non-controlling shareholders.

What changed in ABM Knowledgeware’s revenue and costs?

ABM Knowledgeware increased quarterly operating revenue by Rs 4.62 crore year on year, but total expenses rose by Rs 4.89 crore. Revenue rose from Rs 22.08 crore in Q2 2025 to Rs 26.70 crore in Q2 2026, while expenses increased from Rs 19.99 crore to Rs 24.88 crore, lowering profit before the associate loss.

Employee-benefit expense was the largest cost, at Rs 15.49 crore in Q2 2026, compared with Rs 14.46 crore a year earlier and Rs 14.48 crore in the preceding quarter. Operating expenses rose to Rs 6.37 crore from Rs 2.07 crore in Q2 2025, while depreciation and amortisation increased to Rs 1.09 crore from Rs 1.04 crore.

Other expenses declined to Rs 1.47 crore from Rs 1.78 crore in the year-earlier quarter, and travel and conveyance costs fell to Rs 13.42 lakh from Rs 33.96 lakh. Other income was Rs 83.19 lakh, below Rs 1.24 crore in Q2 2025 and Rs 2.38 crore in the June 2026 quarter.

ABM Knowledgeware disclosed one operating segment, software and services, so the filing does not provide separate segment revenue or profitability. The cost and income comparison therefore applies to the consolidated software and services operation for the quarter ended September 30, 2026.

What do the half-year cash flow and balance sheet show?

ABM Knowledgeware generated net operating cash flow of Rs 9.65 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 6.80 crore in the corresponding 2025 period. Cash generated from operations was Rs 12.29 crore, from which direct taxes paid, net of refunds, totalled Rs 2.64 crore.

Investing activities used Rs 5.14 crore during the six months, compared with cash generated of Rs 6.66 crore a year earlier. The group bought investments worth Rs 29.92 crore, sold investments worth Rs 30.02 crore and invested Rs 4.22 crore in the associate during the period.

Cash and cash equivalents increased to Rs 8.69 crore at September 30, 2026 from Rs 6.84 crore at March 31, 2026. Financing activities used Rs 2.61 crore, including Rs 2.50 crore of dividends paid to equity shareholders and Rs 11.34 lakh of finance costs.

Consolidated total assets were Rs 288.61 crore at September 30, 2026, compared with Rs 285.62 crore at March 31, 2026. Total equity increased to Rs 252.27 crore from Rs 249.16 crore, while total liabilities were Rs 36.33 crore at the half-year date.

What did the auditor review of ABM Knowledgeware’s results say?

ABM Knowledgeware received an unmodified limited-review conclusion from A P Sanzgiri & Co. dated November 6, 2026. The auditor said nothing had come to its attention that caused it to believe the consolidated statement was materially misstated under the applicable reporting requirements.

The review covered the quarter and the period from April 1, 2026 to September 30, 2026 and was conducted under Standard on Review Engagement 2410. The auditor noted that a review provides moderate assurance and is substantially narrower in scope than an audit.

For Instasafe, the auditor relied on another auditor’s review of interim financial information that showed total assets of Rs 21.84 crore at September 30, 2026. The subsidiary also reported net cash inflows of Rs 52.48 lakh for the six months ended on that date.

For US-based Scanit, the auditor relied on financial information certified by management after conversion to Indian accounting requirements. The report said its conclusion was not modified in respect of reliance on other auditors’ work for the subsidiary and management-certified information for the associate.

Conclusion

ABM Knowledgeware’s Q2 consolidated outcome shows that higher revenue did not translate into higher group profit. Revenue from operations rose to Rs 26.70 crore, but the increase in total expenses to Rs 24.88 crore, the Rs 91.37 lakh subsidiary loss and the Rs 77.54 lakh associate loss reduced consolidated profit to Rs 1.08 crore.

The filing discloses no earnings guidance, target or scheduled corporate event beyond the completed September 30, 2026 reporting period. The next results will show whether Instasafe’s quarterly loss and Scanit’s Rs 1.57 crore half-year associate loss continue to affect ABM Knowledgeware’s consolidated earnings.