Ashnisha H1 revenue falls 70% as IT trading records nil

Ashnisha Industries Limited reported consolidated revenue from operations of Rs 145.91 lakh for the six months ended September 30, 2026, about 70% below Rs 483.50 lakh a year earlier, as its software, electronic and IT-product trading segment recorded Rs 0.00 revenue against Rs 441.00 lakh in the prior-year half.

Why did Ashnisha’s H1 revenue decline?

Ashnisha’s revenue decline reflected the absence of sales from software, electronic and IT-product trading. The segment reported Rs 0.00 revenue in the six months ended September 30, 2026, compared with Rs 441.00 lakh in the six months ended September 30, 2025, when it accounted for most of the group’s Rs 483.50 lakh revenue from operations.

Steel trading was the only segment reporting operating sales in the latest half, at Rs 140.91 lakh compared with Rs 42.50 lakh a year earlier. Its Rs 98.41 lakh increase did not offset the Rs 441.00 lakh reduction in IT-product trading revenue. The consolidated results statement reports Rs 145.91 lakh of revenue from operations, while the segment statement reports Rs 140.91 lakh of net sales or operating income for the same six-month period.

Did Ashnisha discontinue software and IT-product trading?

Ashnisha did not disclose a formal discontinuation, sale or exit of software, electronic and IT-product trading. It reported nil segment revenue and a nil segment result for both the quarter ended September 30, 2026 and the six months ended that date, rather than classifying the activity as discontinued operations.

The previous periods show a different contribution from the segment. It generated Rs 441.00 lakh of revenue and a segment loss of Rs 4.00 lakh in the six months ended September 30, 2025; for the year ended March 31, 2026, it recorded the same Rs 441.00 lakh revenue and a Rs 44.08 lakh segment loss. The current-half segment result was Rs 0.00.

Capital employed in the segment remained Rs 18.4919 crore at September 30, 2026, versus Rs 3.8338 crore a year earlier and Rs 18.4870 crore at March 31, 2026. Ashnisha defines capital employed as segment assets less segment liabilities, but the filing does not explain why this balance remained while the segment recorded no current-period sales.

How did Ashnisha’s steel trading business perform?

Ashnisha’s steel trading revenue rose to Rs 140.91 lakh in the six months ended September 30, 2026 from Rs 42.50 lakh a year earlier, making it the only latest-half segment with reported sales. Its segment result nevertheless declined to Rs 1.93 lakh from Rs 8.09 lakh over the same comparison.

The filing’s quarterly disclosures do not provide a consistent split of the reported half-year steel revenue. The consolidated segment table lists Rs 133.48 lakh for steel trading in each of the quarters ended June 30 and September 30, 2026, while showing Rs 140.91 lakh for the half year; the income statement reports Rs 12.42 lakh of total revenue from operations for the September quarter. Ashnisha provides no reconciliation for these presentation differences.

Steel-operation capital employed was Rs 23.2286 crore at September 30, 2026, compared with Rs 5.0501 crore a year earlier and Rs 23.7136 crore at March 31, 2026. The latest half-year segment result of Rs 1.93 lakh was also below the Rs 12.58 lakh reported for steel trading in the year ended March 31, 2026.

What happened to Ashnisha’s profit and operating cash flow?

Ashnisha reported profit before tax of Rs 6.44 lakh for the six months ended September 30, 2026, down from Rs 17.71 lakh in the corresponding prior-year half. No current or deferred tax expense was reported in either half-year comparison, leaving profit for the period at Rs 6.44 lakh versus Rs 17.71 lakh.

The segment statement shows Rs 47.32 lakh of result from the others segment in the latest half, down from Rs 85.61 lakh a year earlier. Other unallocable expenditure, net of income, was Rs 42.81 lakh compared with Rs 71.99 lakh, while steel trading contributed Rs 1.93 lakh and IT-product trading contributed Rs 0.00 to the reported Rs 6.44 lakh profit before tax.

Net cash used in operating activities was Rs 729.30 lakh for April 1, 2026 to September 30, 2026. The cash-flow statement records a Rs 412.52 lakh increase in other current assets and a Rs 152.02 lakh increase in short-term loans and advances, partly offset by a Rs 84.94 lakh decrease in trade receivables. Closing cash and cash equivalents fell to Rs 45.64 lakh from Rs 7.3461 crore at the start of the half year.

What does Ashnisha’s September balance sheet show?

Ashnisha reported total consolidated assets of Rs 134.7403 crore at September 30, 2026, compared with Rs 135.7096 crore at March 31, 2026. Current assets decreased to Rs 97.7779 crore from Rs 99.8653 crore, while non-current assets increased to Rs 36.9625 crore from Rs 35.8443 crore.

Within current assets, other current assets rose to Rs 35.3769 crore from Rs 31.2454 crore, while loans increased to Rs 46.7157 crore from Rs 45.1955 crore. Cash and cash equivalents declined to Rs 45.64 lakh from Rs 7.3461 crore, and the filing reports zero inventory at both September 30, 2026 and March 31, 2026.

Shareholders’ funds including non-controlling interest were Rs 126.3444 crore at September 30, 2026, compared with Rs 126.2799 crore at March 31, 2026. Total liabilities were Rs 8.3960 crore, including Rs 3.2756 crore of non-current liabilities and Rs 5.1204 crore of current liabilities; trade payables to creditors other than micro and small enterprises fell to Rs 1.4933 crore from Rs 2.4357 crore.

The consolidated results include Adzillow Private Limited, formerly EZI Ventures Private Limited. The independent reviewer said the subsidiary’s interim financial information had not been reviewed or audited by its auditor and was furnished by Ashnisha’s management; the review report, dated November 5, 2026, does not express an audit opinion.

Conclusion

Ashnisha’s first-half revenue contraction followed a marked change in sales mix. Steel trading revenue increased from Rs 42.50 lakh to Rs 140.91 lakh, but that increase did not replace Rs 441.00 lakh of prior-year software, electronic and IT-product trading revenue. Profit before tax fell from Rs 17.71 lakh to Rs 6.44 lakh, alongside Rs 729.30 lakh of operating cash outflow.

The filing sets out no plan, target, restart timetable or stated explanation for the nil IT-product trading revenue, despite Rs 18.4919 crore of capital employed in that segment at September 30, 2026. Ashnisha’s next results announcement will show whether IT-product sales resume and whether the differences between quarterly and half-year segment-revenue disclosures are reconciled.