Cambridge Technology posts Rs 8.8315 crore half-year profit

Cambridge Technology Enterprises Limited, referred to hereafter as Cambridge Technology, reported consolidated profit after tax of Rs 8.8315 crore for the half year ended September 30, 2026, reversing a Rs 4.6171 crore loss a year earlier despite revenue declining to Rs 93.2991 crore and a Rs 3.0118 crore exceptional loss on a subsidiary disposal.

How did Cambridge Technology’s half-year earnings change?

Cambridge Technology moved to a consolidated profit after tax of Rs 8.8315 crore in the half year ended September 30, 2026, from a loss after tax of Rs 4.6171 crore in the corresponding half year ended September 30, 2025. Profit before tax was Rs 9.8308 crore, compared with a pre-tax loss of Rs 3.9879 crore a year earlier.

The turnaround occurred even as revenue from operations fell by Rs 1.0714 crore year on year to Rs 93.2991 crore from Rs 94.3705 crore. Total income declined by Rs 2.2223 crore to Rs 96.1175 crore, as other income fell to Rs 2.8184 crore from Rs 3.9700 crore.

Cambridge Technology’s total comprehensive income was Rs 10.2089 crore for the September 2026 half year, against a total comprehensive loss of Rs 0.1583 crore in the previous corresponding period. Basic and diluted earnings per share, not annualised, were Rs 4.50, compared with negative Rs 2.35 a year earlier, on paid-up equity share capital of Rs 19.6310 crore.

What drove the profit turnaround despite lower revenue?

Cambridge Technology’s reported improvement reflected a fall in total expenses that exceeded the decline in income, with expenses decreasing by Rs 19.0535 crore year on year to Rs 83.2749 crore. Consequently, profit before tax and before the exceptional item was Rs 12.8426 crore, compared with a loss of Rs 3.9879 crore in the half year ended September 2025.

Employee benefits expense decreased to Rs 48.9876 crore from Rs 61.1372 crore, a reduction of Rs 12.1496 crore. Depreciation and amortisation expense declined to Rs 4.0758 crore from Rs 6.5935 crore, while finance costs decreased to Rs 2.6107 crore from Rs 4.3673 crore over the same two half-year periods.

The cost mix was not uniformly lower. Cost of services rose to Rs 7.3281 crore in the six months ended September 2026 from Rs 4.5847 crore a year earlier, while purchase of software licences increased to Rs 30.1333 crore from Rs 25.5262 crore. Cambridge Technology reports one reportable segment under Indian Accounting Standard 108, Operating Segments, so the filing does not provide segment-level revenue or profit splits.

Tax expense was Rs 1.0453 crore in the latest half year, compared with Rs 0.5865 crore in the year-earlier period. Current tax was Rs 1.0453 crore, while deferred tax was a credit of Rs 0.0460 crore; these items bridged pre-tax profit of Rs 9.8308 crore to post-tax profit of Rs 8.8315 crore.

How did the September quarter compare with the June quarter?

Cambridge Technology reported profit after tax of Rs 4.6757 crore for the quarter ended September 30, 2026, above the Rs 4.1558 crore reported for the quarter ended June 30, 2026. Revenue from operations, however, declined sequentially to Rs 44.9260 crore from Rs 48.3731 crore.

The September quarter’s profit before tax was Rs 5.2188 crore, compared with Rs 4.6120 crore in the June quarter. Before the exceptional item, June-quarter pre-tax profit was Rs 7.6238 crore, while the September quarter had no exceptional item recorded in the quarter.

September-quarter revenue was Rs 0.8171 crore higher than the Rs 44.1089 crore recorded in the quarter ended September 30, 2025, while total expenses were Rs 9.2155 crore lower. The resulting Rs 4.6757 crore profit contrasts with a Rs 5.2118 crore loss in the prior-year quarter.

What was the effect of the RP Web Apps disposal?

Cambridge Technology recognised a Rs 3.0118 crore exceptional loss in the six months ended September 30, 2026 following the disposal of its entire investment in RP Web Apps Private Limited on April 6, 2026. The consideration was Rs 6.088 lakh, equal to the face value of the subsidiary’s equity shares, and the subsidiary ceased to be part of the group on that date.

The company said the loss arising from cessation of control had initially been adjusted directly against equity or reserves in the June 2026 quarter, rather than recognised in the consolidated statement of profit and loss. It subsequently recognised the Rs 3.0118 crore amount as an exceptional item, meaning the September half-year results reflect its cumulative effect.

The auditor noted that RP Web Apps had positive net worth of Rs 3.0727 crore in its audited standalone financial statements as of March 31, 2026, higher than the disposal consideration. The auditor’s limited-review conclusion was unmodified, but its report separately drew attention to the transaction and to non-current investments valued at cost less impairment.

What changed in Cambridge Technology’s financial position?

Cambridge Technology’s consolidated total assets were Rs 182.5171 crore as of September 30, 2026, down from Rs 184.9502 crore on March 31, 2026. Cash and cash equivalents were Rs 7.0356 crore at September-end, compared with Rs 12.8255 crore at the March year-end.

Other equity increased to Rs 71.0419 crore at September 30 from Rs 60.7436 crore at March 31, while equity share capital remained Rs 19.6310 crore. The half-year statement also recorded total comprehensive income of Rs 10.2089 crore, which includes profit after tax and items such as foreign-operation translation differences.

The auditor said six subsidiaries’ interim results were not reviewed by their auditors and were certified by management. Those entities reported combined half-year revenue of Rs 39.67 lakh and a combined loss after tax of Rs 4.37 lakh for the period ended September 30, 2026; the auditor said they were not material to the group.

Conclusion

Cambridge Technology’s half-year results show a return to consolidated profitability, with Rs 8.8315 crore of post-tax profit replacing the Rs 4.6171 crore loss reported a year earlier. The change came from a Rs 19.0535 crore reduction in expenses despite a Rs 1.0714 crore decline in revenue, and it was achieved after absorbing a Rs 3.0118 crore exceptional loss on the RP Web Apps disposal.

What to watch next is the unresolved accounting effect of the April 6, 2026 RP Web Apps disposal. Cambridge Technology said consolidation adjustments arising from derecognition of the subsidiary’s net assets and related balances continue to be recognised directly in equity or reserves under Indian Accounting Standard 110, Consolidated Financial Statements.