Ace Software Exports PBT rises despite 44% revenue fall

Ace Software Exports Limited reported standalone profit before tax of Rs 88.26 lakh for the quarter ended September 30, 2026, up from Rs 78.47 lakh a year earlier, although revenue from operations fell 44% to Rs 2.03 crore. Total income reported for the quarter increased to Rs 4.44 crore from Rs 4.03 crore.

What were Ace Software Exports’ September-quarter standalone results?

Ace Software Exports’ revenue from operations was Rs 2.03 crore in the quarter ended September 30, 2026, compared with Rs 3.63 crore in the corresponding 2025 quarter, a decline of Rs 1.60 crore. Revenue also fell from Rs 3.54 crore in the quarter ended June 30, 2026, showing a sequential decline of Rs 1.51 crore.

Profit before tax rose by Rs 9.79 lakh year on year to Rs 88.26 lakh, from Rs 78.47 lakh in the September 2025 quarter. It was also above the Rs 83.99 lakh reported in the June 2026 quarter. The statement reported no exceptional or extraordinary items in the September 2026 quarter.

Total comprehensive income was Rs 85.52 lakh in the September 2026 quarter, compared with Rs 84.26 lakh a year earlier and Rs 89.00 lakh in June 2026. Other comprehensive income was negative Rs 2.73 lakh, against positive Rs 5.79 lakh in the corresponding prior-year quarter.

How did Ace Software Exports perform in the first half?

Ace Software Exports reported revenue from operations of Rs 7.56 crore for the six months ended September 30, 2026, compared with Rs 6.88 crore in the year-earlier half. The Rs 68.00 lakh increase in the half-year figure was driven by the June 2026 quarter’s Rs 3.54 crore of revenue, which exceeded the September quarter’s Rs 2.03 crore.

First-half profit before tax increased to Rs 1.72 crore from Rs 1.37 crore in the six months ended September 30, 2025. Total comprehensive income rose to Rs 1.75 crore from Rs 1.51 crore, while basic earnings per share declined to Rs 0.94 from Rs 1.08.

For the year ended March 31, 2026, Ace Software Exports had reported revenue from operations of Rs 14.56 crore and profit before tax of Rs 3.00 crore. The September 2026 half-year revenue equalled slightly more than half of the preceding full-year revenue, while first-half profit before tax was below the full-year amount.

Which costs and segment disclosures matter in the results?

Ace Software Exports reported total expenses of Rs 3.56 crore for the September 2026 quarter, compared with Rs 3.25 crore a year earlier and Rs 3.06 crore in the June 2026 quarter. Employee-benefit expense declined to Rs 1.39 crore from Rs 1.65 crore in September 2025, while other expenses declined to Rs 1.60 crore from Rs 1.81 crore.

Finance costs increased to Rs 12.64 lakh in the September 2026 quarter from Rs 1.87 lakh a year earlier, and depreciation, depletion and amortisation expense increased to Rs 8.81 lakh from Rs 7.30 lakh. Purchases of stock-in-trade were Rs 35.00 lakh for the quarter, whereas the corresponding prior-year quarter showed no amount for that line item.

Ace Software Exports identifies its operations as a single segment, Computer Software and Services Exports. Its notes also state that any provision for taxation, if applicable, will be made at the year end; the September 2026 quarterly statement showed no current-tax or deferred-tax expense.

What do Ace Software Exports’ cash flow and balance sheet show?

Ace Software Exports reported net cash outflow from operating activities of Rs 91.10 lakh in the half year ended September 30, 2026, despite profit before tax of Rs 1.72 crore. An increase in current and non-current assets used Rs 4.06 crore of cash, partly offset by a Rs 1.75 crore increase in current and non-current liabilities.

Investing activities used Rs 5.58 crore in the six-month period, including Rs 5.95 crore in net purchases of investments and Rs 32.54 lakh in net fixed-asset purchases. Financing activities generated Rs 15.00 crore, including Rs 1.39 crore from equity share capital issued and Rs 13.80 crore in share premium received, less Rs 18.56 lakh of interest paid.

Cash and cash equivalents stood at Rs 20.49 crore at September 30, 2026, compared with Rs 11.99 crore at March 31, 2026. Total assets were Rs 130.40 crore at the half-year date, versus Rs 111.72 crore at the March year-end, while equity rose to Rs 124.63 crore from Rs 107.71 crore.

Current liabilities were Rs 5.76 crore at September 30, 2026, compared with Rs 3.02 crore at March 31, 2026. The September figure included current borrowings of Rs 4.90 crore and trade payables of Rs 26.56 lakh owed to micro, small and medium enterprises.

How were Ace Software Exports’ results reviewed?

Ace Software Exports’ unaudited standalone results were reviewed by the audit committee and approved by the board on November 6, 2026. The company prepared the statement under Indian Accounting Standard 34, Interim Financial Reporting, and Regulation 33 of the Securities and Exchange Board of India listing regulations.

J. A. Sheth & Associates issued its limited review report on November 6, 2026. The auditor stated that nothing had come to its attention indicating that the statement was materially misstated, while noting that a limited review is substantially narrower in scope than an audit.

Conclusion

Ace Software Exports’ standalone September-quarter figures show a Rs 1.60 crore year-on-year fall in operating revenue alongside a Rs 9.79 lakh increase in profit before tax. For the first half, revenue rose by Rs 68.00 lakh to Rs 7.56 crore and profit before tax increased by Rs 34.92 lakh to Rs 1.72 crore, while operating cash flow was negative Rs 91.10 lakh.

The next item to watch is the year-end tax provision, if applicable, which Ace Software Exports says will be made at the financial year end. The development of current and non-current asset balances also matters because their Rs 4.06 crore cash use was the principal reported factor behind negative operating cash flow in the first half.