Ascensive Educare profit falls 76% in September half-year

Ascensive Educare Limited reported profit after tax of Rs 54.30 lakh for the half year ended September 30, 2026, down from Rs 2.26 crore a year earlier, while revenue from operations declined 8% to Rs 24.94 crore. Profit before tax fell to Rs 74.31 lakh from Rs 3.03 crore as expenses rose year on year.

Why did Ascensive Educare’s September-half profit fall?

Ascensive Educare’s profit after tax declined by Rs 1.71 crore year on year, from Rs 2.26 crore in the half year ended September 30, 2025 to Rs 54.30 lakh in the half year ended September 30, 2026. Profit before tax fell by Rs 2.29 crore to Rs 74.31 lakh from Rs 3.03 crore, according to the unaudited results approved by the board on November 7, 2026.

Revenue from operations decreased by Rs 2.29 crore to Rs 24.94 crore from Rs 27.23 crore. Other income rose to Rs 40.15 lakh from Rs 7.03 lakh, partly moderating the operating-revenue decline, but total revenue still fell by Rs 1.96 crore to Rs 25.34 crore from Rs 27.30 crore.

Total expenses increased by Rs 33.44 lakh to Rs 24.60 crore in the September 2026 half from Rs 24.26 crore a year earlier. As a result, the gap between total revenue of Rs 25.34 crore and total expenses of Rs 24.60 crore narrowed to Rs 74.31 lakh before tax, compared with Rs 3.03 crore in the prior-year half.

Which expenses changed at Ascensive Educare?

Ascensive Educare’s other expenses increased by Rs 1.24 crore to Rs 21.60 crore in the September 2026 half from Rs 20.36 crore a year earlier. This was the largest expense line in both periods and exceeded the decline in employee benefits expense, which fell by Rs 1.16 crore to Rs 2.07 crore from Rs 3.23 crore.

Finance costs rose to Rs 81.36 lakh from Rs 58.01 lakh, an increase of Rs 23.35 lakh, while depreciation and amortisation increased to Rs 12 lakh from Rs 9.65 lakh. These changes, together with the rise in other expenses, left total expenses higher despite the decline in revenue from operations.

There were no exceptional items in either the September 2026 or September 2025 half. In the immediately preceding half ended March 31, 2026, Ascensive Educare reported exceptional items of Rs 14.54 lakh, reducing profit before tax from Rs 1.78 crore before exceptional items to Rs 1.64 crore after them.

How did Ascensive Educare compare with the preceding half?

Ascensive Educare’s revenue from operations fell by Rs 6.53 crore from Rs 31.47 crore in the half year ended March 31, 2026 to Rs 24.94 crore in the September 2026 half. Total revenue declined by Rs 6.42 crore to Rs 25.34 crore from Rs 31.76 crore, while total expenses fell by Rs 5.38 crore to Rs 24.60 crore from Rs 29.98 crore.

Profit after tax was Rs 54.30 lakh in the September 2026 half, compared with Rs 1.16 crore in the March 2026 half. The sequential comparison includes a lower tax expense of Rs 20.01 lakh in September against Rs 47.98 lakh in March, while the March period included Rs 14.54 lakh of exceptional items and September included none.

Basic and diluted earnings per share were Rs 0.12 for the September 2026 half, down from Rs 0.49 in the September 2025 half and Rs 0.25 in the March 2026 half. Paid-up equity share capital was unchanged at Rs 4.59 crore at September 30, 2026, with a face value of Rs 1 per share.

What did Ascensive Educare report on operating cash flow?

Ascensive Educare used Rs 9.97 crore in operating activities during the half year ended September 30, 2026, compared with Rs 1.04 crore used in the corresponding 2025 half. The cash-flow statement recorded a Rs 10.94 crore net working-capital outflow, compared with an outflow of Rs 3.81 crore a year earlier.

Trade receivables accounted for a Rs 6.63 crore working-capital outflow during the September 2026 half, compared with Rs 5.96 crore in the prior-year half. Other bank balances produced a Rs 1.81 crore outflow, while trade payables produced a Rs 2.06 crore outflow, versus an inflow of Rs 8.13 lakh a year earlier.

Cash used in investing activities was Rs 84.09 lakh, compared with cash generated from investing activities of Rs 2.54 lakh in the September 2025 half. Purchases of property, plant and equipment, including intangible assets and capital work-in-progress, were Rs 88.35 lakh, against Rs 1.85 lakh in the prior-year period.

How did Ascensive Educare’s borrowings and balance sheet change?

Ascensive Educare generated Rs 5.28 crore from financing activities in the September 2026 half, compared with Rs 76.33 lakh a year earlier. It reported borrowing proceeds of Rs 13.48 crore, repayments of Rs 7.59 crore and finance costs paid of Rs 61.68 lakh; cash and cash equivalents closed at Rs 56.66 lakh, from Rs 6.10 crore at the start of the half.

Total borrowings rose to Rs 13.68 crore at September 30, 2026 from Rs 7.79 crore at March 31, 2026. Short-term borrowings increased to Rs 10.72 crore from Rs 6.62 crore, while long-term borrowings rose to Rs 2.96 crore from Rs 1.16 crore.

Total assets increased to Rs 39.87 crore at September 30, 2026 from Rs 35.63 crore at March 31, 2026. Trade receivables rose by Rs 6.35 crore to Rs 27.33 crore, while cash and bank balances on the balance sheet declined by Rs 3.72 crore to Rs 3.43 crore; the filing separately reports cash and cash equivalents of Rs 56.66 lakh in the cash-flow statement.

Shareholders’ funds rose to Rs 19.53 crore from Rs 18.99 crore, as reserves and surplus increased by Rs 54.30 lakh to Rs 14.95 crore. Trade payables to creditors other than micro and small enterprises declined to Rs 1.49 crore from Rs 3.91 crore, while property, plant and equipment increased to Rs 1.48 crore from Rs 77.48 lakh.

Conclusion

Ascensive Educare’s September 2026 half-year result combined a Rs 2.29 crore decline in revenue from operations with a Rs 33.44 lakh increase in total expenses. That change reduced profit before tax to Rs 74.31 lakh and profit after tax to Rs 54.30 lakh, compared with Rs 3.03 crore and Rs 2.26 crore, respectively, in the September 2025 half.

The filing does not disclose a future earnings target or next financial-results date. The reported matters to watch are trade receivables of Rs 27.33 crore, total borrowings of Rs 13.68 crore, and cash and cash equivalents of Rs 56.66 lakh after operating activities used Rs 9.97 crore during the September 2026 half.