Blue Cloud Softech Q2 profit falls as amortisation hits Rs 42.49 crore

Blue Cloud Softech Solutions Limited, referred to as Blue Cloud Softech, reported consolidated profit after tax of Rs 10.03 crore for the quarter ended 30 September 2026, down from Rs 15.42 crore a year earlier, as depreciation and amortisation rose to Rs 42.49 crore following software-licence purchases and the Global Impx Inc. acquisition.

Why did Blue Cloud Softech’s Q2 profit decline?

Blue Cloud Softech’s profit after tax declined as depreciation and amortisation increased by Rs 41.08 crore year on year in the quarter ended 30 September 2026. Profit before tax was Rs 16.29 crore, versus Rs 22.14 crore in the corresponding quarter of 2025, while total tax expense was Rs 6.25 crore, compared with Rs 6.72 crore.

The consolidated result includes Rs 9.93 crore attributable to Blue Cloud Softech’s owners and Rs 10.71 lakh attributable to non-controlling interests. In the preceding quarter ended 30 June 2026, consolidated profit after tax was Rs 17.95 crore, making the September-quarter result lower by Rs 7.92 crore. Basic and diluted earnings per share were Rs 0.10, compared with Rs 0.35 a year earlier and Rs 0.23 in the June quarter.

How did Blue Cloud Softech’s revenue perform in Q2?

Blue Cloud Softech’s total income rose to Rs 300.83 crore in the September 2026 quarter from Rs 253.26 crore a year earlier and Rs 292.53 crore in the June 2026 quarter. Net sales or income from operations contributed Rs 300.80 crore, while other income was Rs 3.62 lakh. The year-on-year increase in total income was Rs 47.57 crore.

For the half year ended 30 September 2026, total income was Rs 593.36 crore, compared with Rs 459.46 crore in the corresponding prior-year period. Half-year profit before tax was Rs 40.17 crore, slightly below Rs 41.68 crore a year earlier, and profit after tax was Rs 27.99 crore against Rs 29.81 crore. Income increased over the half year while the larger depreciation and amortisation charge reduced reported profit.

Blue Cloud Softech reports business performance at an overall level as one segment because its chief operating decision maker reviews it on that basis. The filing therefore does not provide revenue or profit splits by software product, geography or operating unit for the Rs 300.83 crore quarterly income figure.

What caused Blue Cloud Softech’s amortisation expense to rise?

Blue Cloud Softech said depreciation and amortisation reached Rs 42.49 crore in the quarter ended 30 September 2026, compared with Rs 1.41 crore a year earlier and Rs 31.18 crore in the June 2026 quarter. The company said there was no change in accounting policy, useful lives or depreciation method. It attributed the increase to software-licence amortisation and the consolidation of Global Impx Inc.

Blue Cloud Softech and its subsidiaries acquired software licences worth Rs 400.82 crore during financial year 2025-26. Those licences were amortised for only part of that year but were amortised for the full current period. For the half year ended 30 September 2026, amortisation on intangible assets excluding Global Impx Inc. was Rs 58.50 crore.

Global Impx Inc. was acquired on 17 June 2026, and its depreciation and amortisation, mainly relating to intellectual property, totalled Rs 11.01 crore for the half year. The September quarter included Global Impx Inc. for the full quarter, whereas the June quarter included only 14 days after the acquisition. The remaining Rs 4.16 crore of half-year depreciation and amortisation related to property, plant and equipment and right-of-use assets.

Blue Cloud Softech described depreciation and amortisation as a non-cash charge that does not affect earnings before interest, tax, depreciation and amortisation, or EBITDA, and cash flows from operating activities. The company also said the current-period amounts are not comparable with corresponding prior periods because of the licence-acquisition timing and the Global Impx Inc. acquisition.

What do Blue Cloud Softech’s balance sheet and cash flow show?

Blue Cloud Softech’s consolidated total assets were Rs 1,846.98 crore at 30 September 2026, up from Rs 1,367.25 crore at 31 March 2026. Goodwill increased to Rs 708.68 crore from Rs 552.09 crore, and other intangible assets rose to Rs 555.80 crore from Rs 409.44 crore. These movements occurred in the period that included the 17 June 2026 Global Impx Inc. acquisition.

Trade receivables were Rs 502.51 crore at 30 September 2026, compared with Rs 386.31 crore at 31 March 2026. In the half-year cash-flow statement, the increase in trade receivables used Rs 110.94 crore of operating cash flow. Cash generated from operating activities after income tax paid was Rs 21.53 crore for the six months ended 30 September 2026.

Cash and cash equivalents stood at Rs 2.83 crore at 30 September 2026, down from Rs 3.02 crore at the start of the half year. Investing activities used Rs 14.85 crore, including Rs 13.66 crore for fixed assets, right-of-use assets and intangible assets. Financing activities used Rs 6.87 crore, with short-term borrowings falling by Rs 18.50 crore and long-term borrowings increasing by Rs 21.05 crore.

Conclusion

Blue Cloud Softech’s September-quarter income increased to Rs 300.83 crore, but reported profit after tax declined to Rs 10.03 crore as depreciation and amortisation expanded to Rs 42.49 crore. The filing links that expense primarily to Rs 400.82 crore of software licences acquired in financial year 2025-26 and the inclusion of Global Impx Inc. from 17 June 2026.

The next results will show the continuing effect of full-period amortisation and Global Impx Inc. consolidation. Investors can also watch the movement in trade receivables, which rose to Rs 502.51 crore at 30 September 2026, and whether operating cash flow, which was Rs 21.53 crore for the first half, changes alongside those balances.