Avance Technologies posts a Rs 5.95 crore quarterly loss

Avance Technologies Limited reported a consolidated loss of Rs 5.9489 crore for the quarter ended 30 September 2026, reversing a Rs 2.4659 crore profit in the preceding quarter, as total expenses of Rs 39.0532 crore exceeded total income of Rs 33.1043 crore. Revenue from operations was Rs 32.1617 crore.

Why did Avance Technologies report a September-quarter loss?

Avance Technologies reported a loss because its Rs 33.1043 crore total income was Rs 5.9489 crore below total expenses of Rs 39.0532 crore for the three months ended 30 September 2026. There were no exceptional items and no tax expense, leaving the pre-tax loss equal to the loss for the period and total comprehensive loss.

Purchases of stock-in-trade were the largest quarterly cost at Rs 33.2375 crore. Changes in inventories of finished goods, work-in-progress and stock-in-trade added Rs 5.4577 crore of expense, compared with Rs 5.43 crore in the preceding quarter. Employee-benefit expense was Rs 5.30 lakh, other expenses were Rs 30.30 lakh, finance cost was Rs 15,000 and depreciation and amortisation expense was Rs 4,000.

The quarter-on-quarter reversal resulted from income falling faster than expenses. Total income declined by Rs 28.4847 crore from the June 2026 quarter, while total expenses declined by Rs 20.0699 crore. The expense reduction included a Rs 19.7326 crore fall in stock-in-trade purchases, but it did not offset the revenue decline.

How did Avance Technologies' revenue change across periods?

Avance Technologies' revenue from operations fell to Rs 32.1617 crore in the September 2026 quarter from Rs 60.6473 crore in the preceding three months. Other income was Rs 94.26 lakh, nearly unchanged from Rs 94.17 lakh in the June quarter, but this was insufficient to prevent total income falling to Rs 33.1043 crore from Rs 61.589 crore.

Against the corresponding quarter of 2025, revenue from operations declined from Rs 41.3994 crore to Rs 32.1617 crore. Total income decreased from Rs 42.3659 crore to Rs 33.1043 crore, while total expenses fell from Rs 43.1366 crore to Rs 39.0532 crore.

The inventory-change line differed notably from the year-earlier quarter. In the three months ended 30 September 2025, it was a Rs 17.837 crore credit, whereas it was a Rs 5.4577 crore expense in the latest quarter. Purchases of stock-in-trade also declined from Rs 60.8384 crore a year earlier to Rs 33.2375 crore in September 2026.

What do Avance Technologies' half-year results show?

Avance Technologies posted a consolidated loss of Rs 3.483 crore for the six months ended 30 September 2026, compared with a Rs 84.99 lakh profit in the corresponding six months of 2025. Revenue from operations increased to Rs 92.809 crore from Rs 78.8184 crore over the two periods.

Total income rose to Rs 94.6933 crore from Rs 80.733 crore, but total expenses rose to Rs 98.1763 crore from Rs 79.8831 crore. With no exceptional item and no tax expense in either six-month comparison, the change in the reported operating result was reflected directly in the loss before tax of Rs 3.483 crore.

The principal period-on-period change was the inventory line, which moved from a Rs 7.5571 crore credit in the prior-year half to a Rs 10.8877 crore expense in the latest half. Purchases of stock-in-trade decreased by Rs 68.70 lakh, while other expenses increased to Rs 99.61 lakh from Rs 47.47 lakh and employee-benefit expense rose to Rs 8.05 lakh from Rs 5.88 lakh.

What changed in Avance Technologies' balance sheet and cash flow?

Avance Technologies reported total assets of Rs 629.0399 crore as at 30 September 2026, down from Rs 649.0144 crore at 31 March 2026. Equity attributable to owners of the parent declined to Rs 390.6789 crore from Rs 394.1619 crore, matching the Rs 3.483 crore comprehensive loss reported for the first half.

Total liabilities fell to Rs 238.361 crore from Rs 254.8525 crore over the same dates. Non-current liabilities declined to Rs 132.4462 crore from Rs 146.6662 crore, while current liabilities decreased to Rs 105.9148 crore from Rs 108.1863 crore. The balance-sheet presentation reported nil current and non-current borrowings at both dates.

The six-month cash-flow statement recorded net cash outflow from operating activities of Rs 25.6502 crore. Cash generated from operations was negative Rs 25.6502 crore after movements including Rs 24.20 crore in other current assets, Rs 6.0304 crore in other non-current assets and Rs 5.5019 crore in trade payables.

Investing activities generated Rs 1.8843 crore, reflecting interest income of Rs 1.8843 crore. Financing activities used Rs 10.9836 crore, and the reported net decrease in cash and cash equivalents was Rs 34.7495 crore. The filing compares these six-month cash-flow figures with the full year ended 31 March 2026 rather than the corresponding prior-year half.

What did Avance Technologies' auditor conclude?

Avance Technologies' independent auditor, A. Raghavendra Rao & Associates, completed a limited review of the unaudited consolidated results and dated its report 2 November 2026. The auditor said nothing had come to its attention that caused it to believe the statements were not prepared, in material respects, under applicable accounting standards or required disclosure rules.

The report states that the review was conducted under Standard on Review Engagement 2410, covering review engagements on interim financial information performed by the independent auditor of the entity. It also states that a review is substantially narrower in scope than an audit and does not provide assurance that all significant matters that could be identified in an audit would be identified.

Conclusion

Avance Technologies' September-quarter loss followed a sequential fall in revenue from operations to Rs 32.1617 crore, while inventory changes remained a Rs 5.4577 crore expense. For the six months ended 30 September 2026, higher operating revenue of Rs 92.809 crore did not cover total expenses of Rs 98.1763 crore, resulting in a Rs 3.483 crore loss.

The next reported results will show whether operating revenue changes from the September-quarter level and whether the inventory-change line remains an expense after reaching Rs 10.8877 crore in the first half. Cash generation also remains a disclosed point to monitor following the Rs 25.6502 crore operating cash outflow for the six months ended 30 September 2026.