Avio Smart Market Stack profit falls 61% despite revenue growth

Avio Smart Market Stack Limited reported consolidated revenue from operations of Rs 13.89 crore for the quarter ended September 30, 2026, but net profit fell 61% year on year to Rs 39.03 lakh from Rs 1.00 crore. A Rs 31.18 lakh share of associate loss and Rs 35.36 lakh tax expense reduced the final profit.

How did Avio Smart Market Stack perform in the September 2026 quarter?

Avio Smart Market Stack increased revenue from operations by Rs 1.49 crore year on year to Rs 13.89 crore in the quarter ended September 30, 2026, from Rs 12.40 crore in the corresponding 2025 quarter. Revenue was also above Rs 11.97 crore in the quarter ended June 30, 2026. Total income, including other income, reached Rs 15.01 crore, compared with Rs 12.72 crore a year earlier and Rs 12.84 crore sequentially.

Other income was Rs 1.12 crore in the September 2026 quarter, against Rs 31.85 lakh in September 2025 and Rs 87.20 lakh in June 2026. Separately, the filing said the company recognised Rs 89.82 lakh of interest on an income-tax refund in its unaudited standalone results and created an additional Rs 11.01 lakh provision for income tax relating to earlier years.

Total expenses rose to Rs 13.96 crore from Rs 11.71 crore in the year-earlier quarter and Rs 11.61 crore in June 2026. Operating expenses increased to Rs 10.72 crore from Rs 8.59 crore a year earlier, employee-benefit expense reached Rs 1.85 crore from Rs 1.48 crore, and finance costs were Rs 18.17 lakh versus Rs 39,000 in September 2025.

Why did Avio Smart Market Stack’s profit decline despite higher revenue?

Avio Smart Market Stack’s consolidated net profit declined because Rs 74.39 lakh of profit before tax was reduced by a Rs 35.36 lakh tax expense after the company recorded a Rs 31.18 lakh share of loss from its associate. In the quarter ended September 30, 2025, the company reported profit before tax of Rs 1.00 crore, no tax expense and net profit of Rs 1.00 crore.

The September 2026 tax expense comprised Rs 20.71 lakh of current tax, Rs 3.64 lakh of deferred tax and Rs 11.01 lakh relating to previous periods. This differed from the June 2026 quarter, when a Rs 27.76 lakh net tax benefit, including a Rs 50.02 lakh credit relating to previous periods, accompanied net profit of Rs 92.44 lakh.

The reported figures imply net profit equal to about 2.6% of September-quarter total income of Rs 15.01 crore, compared with about 7.9% of Rs 12.72 crore in the year-earlier period. This is a calculation from the consolidated results rather than a management-provided margin explanation; the filing does not state a separate reason for the movement beyond its reported associate loss and tax items.

Shree Naganarasimha Private Limited was an associate during the period after Avio Smart Market Stack acquired a 25.76% stake on March 6, 2026 and a further 15.20% on April 8, 2026. The company held 40.96% as at June 30, 2026 and accounted for the investment under Indian Accounting Standard 28, Investments in Associates and Joint Ventures.

Which Avio Smart Market Stack segments drove September-quarter revenue?

Financial Inclusion & Digital Services remained Avio Smart Market Stack’s largest reported business segment, with September-quarter revenue of Rs 11.88 crore. This exceeded Rs 11.49 crore in the quarter ended September 30, 2025 and Rs 10.54 crore in the June 2026 quarter, while segment result before interest and taxes rose to Rs 1.48 crore from Rs 67.68 lakh a year earlier.

Agri Supply Chain & Technologies generated Rs 1.87 crore of revenue in the September 2026 quarter, compared with Rs 16.96 lakh in June 2026 and no revenue in the September 2025 column. Its segment result before interest and taxes was Rs 10.13 lakh, up from Rs 1.69 lakh in the preceding quarter.

Others moved in the opposite direction, as revenue fell to Rs 13.87 lakh from Rs 90.24 lakh a year earlier and Rs 1.26 crore in June 2026. The segment recorded a Rs 33.90 lakh loss before interest and taxes, compared with profit of Rs 33.13 lakh in September 2025 and Rs 72.77 lakh in June 2026.

Diagnostics & Healthcare recorded no revenue in the September 2026 quarter and a Rs 10,000 loss before interest and taxes. Avio Smart Market Stack identifies Financial Inclusion & Digital Services, Agri Supply Chain & Technologies and Diagnostics & Healthcare as its three business verticals for segment reporting under Indian Accounting Standard 108, Operating Segments.

What do Avio Smart Market Stack’s half-year results and auditor review show?

For the six months ended September 30, 2026, Avio Smart Market Stack reported revenue from operations of Rs 25.86 crore, compared with Rs 21.23 crore in the prior-year period. Consolidated net profit was Rs 1.31 crore, below Rs 1.45 crore a year earlier, while the associate’s share of loss was Rs 89.24 lakh against nil in the comparable period.

The auditor said the Rs 31.18 lakh quarterly loss, including other comprehensive loss, from the associate was based on interim financial information that had not been reviewed by either the auditor or the associate’s auditor. The review also said financial information for the Singapore branch, incorporated on March 27, 2025, was included in the standalone results without review by an auditor.

The auditor drew attention to balances involving certain debtors, bank balances, deposits and government receivables that management is reconciling with counterparties and authorities. Management has also filed a writ petition before the Telangana High Court seeking to quash certain demands relating to earlier financial years, while the assessment for Assessment Year 2020-21 remains pending before the appropriate authorities.

The filing’s result tables mark the September 2026 quarter as unaudited, while the auditor issued a limited-review report dated November 14, 2026 under Regulation 33 of the Securities and Exchange Board of India listing regulations. The auditor said nothing had come to its attention to suggest that the statement did not make required disclosures or contained a material misstatement.

Conclusion

Avio Smart Market Stack delivered higher September-quarter revenue, led by Financial Inclusion & Digital Services and higher Agri Supply Chain & Technologies revenue, but consolidated net profit fell to Rs 39.03 lakh. The Rs 31.18 lakh associate loss, Rs 35.36 lakh tax expense and Rs 33.90 lakh loss in Others meant that the rise in revenue did not translate into higher bottom-line earnings.

The next disclosures to watch are management’s reconciliation of legacy balances, the pending Assessment Year 2020-21 matter and filings with the Reserve Bank of India concerning foreign-currency assets and liabilities under the resolution plan. The company also said it is regularising compliance and pursuing closure of non-functional foreign subsidiaries, while its associate investment will continue to be accounted for under the equity method.