ATC Energies System reports Rs 94.18 lakh September-half profit

ATC Energies System Limited reported a Rs 94.18 lakh profit after tax for the half year ended September 30, 2026, reversing a Rs 208.50 lakh loss in the half year ended March 31, 2026, as revenue from operations increased to Rs 22.04 crore from Rs 17.85 crore and profit before tax turned positive.

How did ATC Energies System return to profit in September 2026?

ATC Energies System reported profit after tax of Rs 94.18 lakh for the half year ended September 30, 2026, compared with a Rs 208.50 lakh loss after tax in the half year ended March 31, 2026. Profit before tax was Rs 98.23 lakh, compared with a Rs 189.42 lakh pre-tax loss in the preceding half, a Rs 287.65 lakh change.

The September 2026 result also exceeded the Rs 60.91 lakh profit after tax reported for the half year ended September 30, 2025. Profit before tax was Rs 85.49 lakh in that earlier half, meaning the latest pre-tax result was Rs 12.74 lakh higher. The financial statement reported no exceptional or extraordinary items in the three half-year periods presented.

What changed in ATC Energies System revenue and costs?

ATC Energies System recorded Rs 22.04 crore of revenue from operations in the September 2026 half, Rs 4.19 crore above the Rs 17.85 crore in the March 2026 half. Revenue was also Rs 9.15 crore higher than the Rs 12.89 crore reported for the half year ended September 30, 2025. Other income was Rs 25.48 lakh, compared with Rs 25.94 lakh in the preceding half.

Total expenses rose to Rs 22.21 crore in the September 2026 half from Rs 20.01 crore in the March 2026 half. Cost of material consumed increased to Rs 17.48 crore from Rs 16.41 crore, while employee-benefit expense declined to Rs 21.59 lakh from Rs 1.44 crore. Finance cost increased to Rs 93.35 lakh from Rs 91.55 lakh.

Expense movements differed by line item. Depreciation and amortisation rose to Rs 1.29 crore from Rs 1.19 crore, and other expenses increased to Rs 86.06 lakh from Rs 24.52 lakh. The change in inventories of finished goods and stock-in-trade was a Rs 51.40 lakh expense in the latest half, compared with a Rs 19.80 lakh credit in the preceding half. Total income nevertheless increased by Rs 5.08 crore between the two halves.

What do ATC Energies System assets and borrowings show?

ATC Energies System had total assets of Rs 117.09 crore at September 30, 2026, compared with Rs 111.79 crore at March 31, 2026. Current assets rose to Rs 91.76 crore from Rs 83.01 crore, led by trade receivables of Rs 29.96 crore, up from Rs 20.38 crore. Property, plant and equipment declined to Rs 23.29 crore from Rs 24.34 crore.

Short-term borrowings were Rs 17.38 crore at September 30, 2026, compared with Rs 12.43 crore at March 31, 2026. Long-term borrowings declined to Rs 5.82 crore from Rs 7.11 crore over the same period. Shareholders' funds were Rs 88.18 crore, compared with Rs 87.57 crore at the March year-end.

The balance-sheet changes included a Rs 9.59 crore rise in trade receivables and a Rs 4.95 crore increase in short-term borrowings. Current liabilities rose to Rs 22.22 crore from Rs 16.63 crore, while non-current liabilities declined to Rs 6.39 crore from Rs 7.59 crore. These figures are from the unaudited standalone balance sheet at September 30, 2026.

Why was ATC Energies System operating cash flow negative?

ATC Energies System reported net cash used in operating activities of Rs 7.21 crore for the period ended September 30, 2026, despite operating profit before working-capital changes of Rs 2.95 crore. The cash-flow statement attributed the outcome to a Rs 10.16 crore net increase in working capital.

Trade receivables increased by Rs 9.59 crore and inventories increased by Rs 72.58 lakh during the period. Other current assets increased by Rs 49.54 lakh, while trade payables declined by Rs 1.60 crore. These movements outweighed the operating profit and contributed to the reported operating cash outflow.

Cash and cash equivalents were Rs 23.30 lakh at the end of the period, down from Rs 6.33 crore at the beginning of the year. Net cash used in investing activities was Rs 1.57 crore, including Rs 4.04 crore for investment or maturity of deposits. Net cash from financing activities was Rs 2.69 crore, including Rs 4.95 crore of proceeds from short-term borrowings.

What did ATC Energies System disclose on IPO funds and review findings?

ATC Energies System disclosed that it had used Rs 50.80 crore of Rs 51.02 crore in net initial public offering proceeds as at September 30, 2026, leaving Rs 22.04 lakh unutilised. The company stated that there was no deviation or variation in the use of funds raised from its initial public offering, whose allotment date was March 28, 2025.

The disclosed IPO objects included Rs 6.72 crore for refurbishment, civil work and upgrades at the Noida factory, Rs 9.53 crore for repayment or prepayment of certain borrowings, and Rs 7.22 crore for offer-related expenses. General corporate purposes had a Rs 10.58 crore proposed allocation, of which Rs 10.41 crore had been used, leaving Rs 16.57 lakh pending.

The independent auditor's limited-review report, dated November 13, 2026, said nothing had come to its attention to suggest that the unaudited standalone results did not meet applicable disclosure requirements. It also stated that trade receivable and trade payable balances at the reporting date remained subject to confirmation and reconciliation with counterparties. Management represented that the balances were recorded in the books and undertook to obtain confirmations and reconcile differences, if any.

Conclusion

ATC Energies System moved from a Rs 208.50 lakh loss in the March 2026 half to a Rs 94.18 lakh profit in the September 2026 half, with revenue from operations rising by Rs 4.19 crore sequentially. The improvement in reported earnings came alongside higher material costs, finance costs and other expenses, while employee-benefit expense was lower than in the preceding half.

Next, investors can watch the use of the remaining Rs 22.04 lakh of IPO proceeds, including Rs 16.57 lakh assigned to general corporate purposes. They can also monitor management's planned confirmation and reconciliation of trade receivable and trade payable balances, following the auditor's limited-review observation at September 30, 2026.