CSM Technologies capitalises Rs 20.07 crore on platforms

CSM Technologies Limited capitalised Rs 20.07 crore of qualifying software-development expenditure in the half year ended September 30, 2026, lifting intangible assets under development to Rs 30.32 crore from Rs 10.25 crore at March 31, 2026. The balance covers six named platforms and was recorded under the company’s Ind AS 38 recognition criteria.

What did CSM Technologies capitalise in the half year to September 2026?

CSM Technologies capitalised Rs 20.07 crore in intangible assets under development during the half year ended September 30, 2026. The expenditure concerns multiple software products and reusable technology platforms being developed for internal deployment, integration with customer projects and potential commercial use.

The half-year expenditure raised the intangible-assets-under-development balance to Rs 30.32 crore at September 30, 2026, compared with Rs 10.25 crore at March 31, 2026. CSM Technologies identifies AI Foundry, Plantrix, Dynamic Framework, E-Sign Engine, Aadhar Data Vault and Tendrils ERP as the principal products and platforms within that balance.

Cash spending recorded under intangible assets under development was Rs 20.07 crore in the 2026 half year, against Rs 2.08 crore in the corresponding 2025 half year. That increase occurred alongside a rise in net cash used in investing activities to Rs 29.51 crore from Rs 5.67 crore.

Which software platforms are under development at CSM Technologies?

CSM Technologies lists AI Foundry as an integrated artificial-intelligence and machine-learning development framework. Plantrix is an artificial-intelligence-enabled project-planning, monitoring and smart-delivery platform, while Dynamic Framework is a low-code and no-code rapid-application-development platform.

E-Sign Engine is a digital-signing and signature-verification platform, and Aadhar Data Vault is a secure Aadhaar data-management, tokenisation and compliance platform. CSM Technologies says its development reviews include security architecture and regulatory compliance, mechanisms relevant to these two products.

Tendrils ERP is an enterprise-resource-planning platform covering human resources, payroll, finance, projects, procurement and other operational functions. The September 30, 2026 filing does not provide a separate investment amount, completion date, customer contract or revenue target for any of the six platforms, so the Rs 30.32 crore balance cannot be allocated among them from the disclosure.

How does CSM Technologies decide which development costs to capitalise?

CSM Technologies capitalises development expenditure only when the recognition criteria under Indian Accounting Standard 38, or Ind AS 38, on intangible assets are met. These include technical feasibility, intention and ability to complete and use or commercially deploy the product, adequate technical and financial resources, probable future economic benefits and reliable measurement of attributable expenditure.

The policy excludes research and preliminary evaluation, general administration, training, marketing and routine maintenance from capitalisation. CSM Technologies recognises those items in the statement of profit and loss as incurred, distinguishing them from the Rs 20.07 crore of qualifying development expenditure recorded for the half year ended September 30, 2026.

Capitalised costs principally comprise directly attributable employee costs, professional and technical charges, software-development costs and other expenditure required to prepare products for intended use. The Rs 30.32 crore accounting balance at September 30, 2026 is therefore not presented as a single cash budget for six products.

CSM Technologies says management periodically reviews development status, technical feasibility, security architecture, regulatory compliance, commercial viability and expected future economic benefits for each product. The Audit Committee reviewed, and the Board approved, the consolidated results for the quarter and half year ended September 30, 2026 on November 13, 2026.

When will CSM Technologies begin amortising the software assets?

CSM Technologies will transfer a product or identifiable module to the appropriate intangible-asset category when it becomes available for its intended use. The company will then amortise the transferred asset over its estimated useful life, although the filing does not disclose useful lives, module-completion dates or launch dates for the Rs 30.32 crore balance.

The classification affects when the development cost enters the income statement through amortisation. CSM Technologies reported depreciation and amortisation expense of Rs 3.02 crore in the half year ended September 30, 2026, compared with Rs 3.16 crore a year earlier, while the Rs 20.07 crore development spending remained within assets under development.

CSM Technologies reported a loss before tax of Rs 24.60 crore and net cash used in operating activities of Rs 70.97 crore for the half year ended September 30, 2026. The filing does not attribute either figure to the six-platform programme, but it separately records the Rs 20.07 crore development outlay within investing cash flows.

The company completed its initial public offering of 1,29,01,000 equity shares at Rs 113 per share in the quarter ended June 30, 2026, raising Rs 145.78 crore. The shares were listed on the National Stock Exchange of India and BSE on July 2, 2026, and the company recognised Rs 12.90 crore of equity share capital and Rs 132.88 crore of securities premium from the issue.

Conclusion

CSM Technologies increased its qualifying product-development capitalisation sharply in the half year to September 30, 2026, with spending of Rs 20.07 crore versus Rs 2.08 crore a year earlier. Its Rs 30.32 crore intangible-assets-under-development balance spans six platforms across artificial intelligence, project delivery, rapid application development, digital signing, Aadhaar data management and enterprise resource planning.

The next disclosed trigger is the point at which CSM Technologies determines that a product or identifiable module is available for intended use, requiring transfer to intangible assets and subsequent amortisation. The filing sets no completion schedule or commercial target for the six platforms, while management says it will continue reviews of feasibility, compliance, commercial viability and expected economic benefits.