Alankit Q2 profit rises 65% to Rs 7.39 crore on income gain

Alankit Limited reported consolidated net profit of Rs 7.39 crore for the quarter ended September 30, 2026, up 65% from Rs 4.49 crore a year earlier, as total income increased 16% to Rs 99.73 crore. Services and financial services recorded the largest year-on-year increases in segment revenue and segment results during the quarter.

How did Alankit perform in the September 2026 quarter?

Alankit increased consolidated net profit, profit before tax and total income in the quarter ended September 30, 2026. Profit before tax rose to Rs 9.91 crore from Rs 4.85 crore in the September 2025 quarter, while net profit rose to Rs 7.39 crore from Rs 4.49 crore after total tax expense increased to Rs 2.52 crore from Rs 0.36 crore.

Total income was Rs 99.73 crore, compared with Rs 85.68 crore a year earlier and Rs 81.73 crore in the quarter ended June 30, 2026. Revenue from operations excluding foreign-currency sales rose to Rs 57.14 crore from Rs 56.18 crore, foreign-currency-sale revenue increased to Rs 36.21 crore from Rs 23.92 crore, and other income was Rs 6.38 crore against Rs 5.58 crore.

Total expenses reached Rs 89.82 crore from Rs 80.82 crore. Foreign-currency purchases increased to Rs 35.24 crore from Rs 23.72 crore, employee-benefit expense rose to Rs 13.59 crore from Rs 8.37 crore, and other expenses increased to Rs 20.74 crore from Rs 16.46 crore; depreciation and amortisation declined to Rs 2.78 crore from Rs 3.31 crore.

Which segments drove Alankit's quarterly increase?

Services and financial services drove the largest year-on-year gains in Alankit's segment revenue and results for the September 2026 quarter. Services revenue rose to Rs 24.12 crore from Rs 12.72 crore, while its segment result, stated before interest and tax, increased to Rs 7.63 crore from Rs 0.71 crore.

Financial-services revenue increased to Rs 8.87 crore from Rs 5.05 crore, and its segment result rose to Rs 2.82 crore from Rs 1.28 crore. Product-sale revenue was Rs 64.43 crore, versus Rs 63.09 crore a year earlier, while the product-sale segment result declined to Rs 1.36 crore from Rs 1.88 crore.

The filing recorded unallocated revenue of Rs 2.32 crore, down from Rs 4.82 crore a year earlier. Aggregate segment results rose to Rs 14.12 crore from Rs 8.68 crore; Alankit then deducted interest of Rs 1.43 crore and other unallocated expenditure of Rs 2.78 crore to reach profit before tax of Rs 9.91 crore.

Why did Alankit's first-half income decline year on year?

Alankit's first-half income declined because lower product-sale revenue and other income outweighed gains in services and financial services. Total income for the half year ended September 30, 2026 was Rs 181.46 crore, down from Rs 193.38 crore a year earlier, although net profit increased to Rs 12.71 crore from Rs 10.45 crore.

Product-sale revenue declined to Rs 114.52 crore in the six months from Rs 137.91 crore in the corresponding prior-year period. Other income decreased to Rs 10.45 crore from Rs 22.51 crore, while services revenue rose to Rs 44.36 crore from Rs 38.26 crore and financial-services revenue increased to Rs 18.56 crore from Rs 10.78 crore.

First-half profit before tax increased to Rs 17.62 crore from Rs 13.38 crore as total expenses fell to Rs 163.83 crore from Rs 180.00 crore. The September quarter also improved sequentially from June 2026, when net profit was Rs 5.32 crore and total income was Rs 81.73 crore.

What changed in Alankit's balance sheet and borrowings?

Alankit's consolidated total assets increased to Rs 506.30 crore at September 30, 2026 from Rs 461.52 crore at March 31, 2026. Current assets rose to Rs 274.64 crore from Rs 212.27 crore, including loans of Rs 68.90 crore against Rs 22.94 crore and trade receivables of Rs 79.89 crore against Rs 73.02 crore.

Total equity was Rs 353.79 crore at September 30, compared with Rs 340.72 crore at March 31, while other equity increased to Rs 303.04 crore from Rs 290.09 crore. Short-term borrowings rose to Rs 55.23 crore from Rs 11.48 crore, and long-term borrowings increased to Rs 12.06 crore from Rs 6.05 crore.

Segment capital employed, defined in the filing as segment assets less segment liabilities, was Rs 83.75 crore for financial services, Rs 61.87 crore for product sale and Rs 26.98 crore for services at September 30. Services capital employed was Rs 44.91 crore a year earlier, with services liabilities increasing to Rs 74.37 crore from Rs 35.07 crore.

What unresolved matters did Alankit disclose?

Alankit disclosed income-tax demand notices of Rs 177.01 crore covering assessment years 2011-12 to 2020-21. The group said it had appealed to the appropriate authorities and that legal opinion it obtained considered the demand not tenable; the statutory auditor drew attention to the matter without modifying its review conclusion.

The auditor also highlighted Rs 53.93 crore in other non-current assets for the purchase of immovable property from a related party, where legal title had not transferred to Alankit as of September 30, 2026. During the previous financial year ended March 31, 2026, the group wrote back trade payables of Rs 10.84 crore and wrote off trade receivables of Rs 13.13 crore, which the auditor said significantly affected that period's results.

The consolidated statements include Alankit and six subsidiaries, including wholly owned businesses in technologies, forex, insurance broking, imaginations and ID consulting, along with Verasys Limited. The statutory auditor conducted a limited review of the September 2026 results and reported no matter causing it to believe the statements contained a material misstatement.

Conclusion

Alankit's September 2026 quarter paired a 65% increase in consolidated net profit to Rs 7.39 crore with a 16% increase in total income to Rs 99.73 crore. Services delivered the largest increase in revenue and segment result, financial services also expanded, and product-sale revenue was broadly unchanged while its segment result declined.

The next results will indicate whether the September-quarter rise in services revenue to Rs 24.12 crore and financial-services revenue to Rs 8.87 crore can offset the first-half decline in product-sale revenue. Developments in the Rs 177.01 crore tax appeal and transfer of title for the Rs 53.93 crore related-party property purchase also remain matters to watch.