Adtech Systems revenue rises 20% but September profit halves

Adtech Systems Limited reported revenue from operations of Rs 16.26 crore for the quarter ended September 30, 2026, up 20% from a year earlier, while profit after tax fell 52% to Rs 85.24 lakh as total expenses increased 36% to Rs 15.63 crore. Electronic Security Systems supplied nearly all quarterly revenue, while Solar Project remained loss-making.

Why did Adtech Systems’ September-quarter profit decline?

Adtech Systems’ profit after tax declined to Rs 85.24 lakh in the quarter ended September 30, 2026, from Rs 1.78 crore in the corresponding quarter of 2025, despite a Rs 2.68 crore increase in revenue from operations. Profit before tax fell to Rs 96.27 lakh from Rs 2.37 crore, as total income increased 19% to Rs 16.60 crore but total expenses rose 36% to Rs 15.63 crore.

The largest cost movement was purchases of stock-in-trade, which rose to Rs 9.91 crore from Rs 6.20 crore a year earlier. Changes in inventories of finished goods, work-in-progress and stock-in-trade were an expense of Rs 2.05 crore, compared with Rs 1.43 crore in the September 2025 quarter. These increases outweighed lower employee-benefit expense of Rs 1.85 crore, versus Rs 1.91 crore, and other expenses of Rs 1.64 crore, versus Rs 1.79 crore.

Tax expense was Rs 11.03 lakh for the September 2026 quarter, compared with Rs 59.70 lakh a year earlier, alongside the lower pre-tax profit. Basic and diluted earnings per share were Rs 0.72, down from Rs 1.49 in the prior-year quarter. Paid-up equity capital was Rs 11.91 crore, with a face value of Rs 10 per share.

Which business generated Adtech Systems’ September-quarter sales?

Adtech Systems generated gross segment revenue of Rs 16.24 crore from Electronic Security Systems in the September 2026 quarter, against Rs 13.56 crore a year earlier. The segment therefore accounted for nearly all of the company’s Rs 16.26 crore revenue from operations, while Solar Project revenue was Rs 2.33 lakh, compared with Rs 2.03 lakh in the prior-year quarter.

Electronic Security Systems recorded a segment result of Rs 2.06 crore, down from Rs 3.72 crore despite the rise in segment revenue. The disclosed figures show that the main operating segment produced additional sales but a lower segment result. The filing does not provide product-level sales, pricing, order-book or margin data to explain that movement.

Solar Project reported a quarterly segment loss of Rs 13.45 lakh, narrower than the Rs 48.77 lakh loss in the September 2025 quarter. Adtech Systems said it had hived off the Solar Division, but continues segment reporting while existing solar projects remain incomplete. The segment’s six-month loss was Rs 95.60 lakh, compared with Rs 99.09 lakh a year earlier.

Combined segment results were Rs 1.92 crore in the September quarter, compared with Rs 3.23 crore a year earlier. Other unallocable expenses, net of unallocable income, increased to Rs 95.96 lakh from Rs 85.58 lakh, reducing the combined segment result to pre-tax profit of Rs 96.27 lakh. Other income was Rs 33.48 lakh and includes interest on deposits, foreign-exchange gains and rental income from property investments.

How did Adtech Systems perform in the first half of 2026-27?

Adtech Systems’ revenue from operations for the six months ended September 30, 2026 rose 32% to Rs 29.45 crore from Rs 22.37 crore a year earlier, while profit after tax fell 87% to Rs 32.80 lakh from Rs 2.44 crore. The half-year result includes a Rs 52.44 lakh loss in the quarter ended June 30, 2026, followed by the Rs 85.24 lakh profit in the September quarter.

Total income for the first half increased to Rs 30.17 crore from Rs 22.96 crore, but total expenses rose to Rs 29.73 crore from Rs 19.70 crore. Purchases of stock-in-trade increased to Rs 21.13 crore from Rs 12.52 crore. Profit before tax consequently fell to Rs 43.83 lakh from Rs 3.26 crore.

Electronic Security Systems reported half-year gross revenue of Rs 29.40 crore, compared with Rs 22.18 crore in the comparable period, while its segment result fell to Rs 3.43 crore from Rs 6.17 crore. Solar Project revenue fell to Rs 4.87 lakh from Rs 19.34 lakh. Other unallocable expenses, net of income, rose to Rs 2.03 crore from Rs 1.92 crore.

Net cash from operating activities was Rs 88.08 lakh for the six months ended September 30, 2026. Cash and cash equivalents increased to Rs 2.19 crore at September 30 from Rs 1.83 crore at March 31, 2026. Investing activities used Rs 5.79 lakh and financing activities used Rs 48.35 lakh, resulting in a net increase in cash and cash equivalents of Rs 35.94 lakh.

What changed in Adtech Systems’ balance sheet and finance leadership?

Adtech Systems reported total assets of Rs 65.51 crore at September 30, 2026, compared with Rs 67.37 crore at March 31, 2026. Current assets decreased to Rs 54.02 crore from Rs 56.03 crore. Trade receivables fell to Rs 15.21 crore from Rs 17.88 crore, inventories declined to Rs 11.99 crore from Rs 12.67 crore, and investments decreased to Rs 2.50 crore from Rs 3.50 crore.

Total equity was Rs 54.33 crore at September 30, 2026, compared with Rs 54.00 crore at March 31, 2026. The balance sheet reported nil borrowings under both current and non-current liabilities at September 30. Current liabilities declined to Rs 10.54 crore from Rs 12.73 crore at the March year-end, including trade payables of Rs 4.45 crore, down from Rs 6.65 crore.

The board approved the unaudited results on November 14, 2026, after review by the audit committee. The statutory auditor conducted a limited review and stated that a review is substantially less extensive than an audit, so it did not express an audit opinion. The filing also said Adtech Systems has no material subsidiary and does not control another entity within the meaning of Indian Accounting Standard 110.

Adtech Systems appointed S. Balamurali as chief financial officer and key managerial personnel effective November 15, 2026, alongside his existing posts as company secretary and compliance officer. He succeeded Vinaya Chand P, who retired as chief financial officer at the close of business on November 14, 2026 upon reaching superannuation age. The company said the appointment would not change Balamurali’s existing remuneration.

Conclusion

The September-quarter figures show that Adtech Systems converted a 20% rise in revenue into a lower profit outcome, as purchases of stock-in-trade and inventory-related expense grew faster than income. Electronic Security Systems remained the principal revenue source with Rs 16.24 crore of gross segment sales, but its segment result declined, while Solar Project continued to report a loss.

The disclosed operational matter to watch is completion of the existing Solar Division projects, because the company continues to report the segment while those projects remain pending and it posted a Rs 13.45 lakh quarterly loss. The next results will also show whether the September-quarter profit following the Rs 52.44 lakh June-quarter loss is sustained after S. Balamurali assumed the additional chief financial officer role on November 15, 2026.