CSM Technologies swings to Rs 10.20 crore Q2 net loss

CSM Technologies Limited reported a Rs 10.20 crore consolidated loss for the quarter ended September 30, 2026, reversing a Rs 14.39 crore profit a year earlier, as revenue from operations fell to Rs 42.27 crore from Rs 65.66 crore and employee benefit expense increased to Rs 34.87 crore.

Why did CSM Technologies report a Q2 loss?

CSM Technologies reported a loss because quarterly total expenses of Rs 56.69 crore exceeded total income of Rs 43.04 crore, resulting in a pre-tax loss of Rs 13.65 crore for the quarter ended September 30, 2026. In the corresponding 2025 quarter, total income of Rs 66.32 crore exceeded expenses of Rs 48.30 crore, producing a pre-tax profit of Rs 18.02 crore.

The consolidated loss for the period was Rs 10.20 crore after a net tax credit of Rs 3.65 crore, compared with a Rs 14.39 crore profit after tax a year earlier. Basic and diluted earnings per share, or EPS, were negative Rs 2.65, against positive Rs 3.44 in the September 2025 quarter.

How far did CSM Technologies’ revenue fall in Q2?

CSM Technologies’ revenue from operations declined by Rs 23.39 crore, or 35.6%, year on year to Rs 42.27 crore in the September 2026 quarter. Revenue was also below the Rs 42.70 crore reported in the quarter ended June 30, 2026, while other income increased sequentially to Rs 76.63 lakh from Rs 54.43 lakh.

For the six months ended September 30, 2026, revenue from operations was Rs 84.97 crore, down from Rs 100.89 crore in the year-earlier six months. Total income fell to Rs 86.28 crore from Rs 102.01 crore, while the half-year result changed from a Rs 6.04 crore profit to a Rs 18.48 crore loss.

CSM Technologies describes its activity as a wide range of technology services and reports no separate operating segment under Indian Accounting Standard 108. The filing therefore does not provide a product, customer or geographic split for the Rs 23.39 crore quarterly revenue reduction.

Which expenses changed at CSM Technologies in Q2?

CSM Technologies’ employee benefit expense rose by Rs 8.45 crore year on year to Rs 34.87 crore in the September 2026 quarter, from Rs 26.42 crore. It was also higher than the Rs 33.42 crore reported in the June 2026 quarter, even as September-quarter revenue was Rs 42.27 crore.

Cost of services rendered fell to Rs 9.69 crore from Rs 10.87 crore in the prior-year quarter, but materials consumed increased to Rs 3.28 crore from Rs 2.83 crore. Other expenses rose to Rs 5.47 crore from Rs 4.44 crore, while depreciation and amortisation increased to Rs 1.65 crore from Rs 1.54 crore; finance costs declined to Rs 1.93 crore from Rs 2.19 crore.

During the six months ended September 30, 2026, employee benefit expense reached Rs 68.30 crore, compared with Rs 50.88 crore a year earlier. Total expenses increased to Rs 110.88 crore from Rs 93.59 crore, despite the Rs 15.73 crore decline in total income, leading to a pre-tax loss of Rs 24.60 crore against a Rs 8.42 crore pre-tax profit.

What do CSM Technologies’ balance sheet and cash flows show?

CSM Technologies had total assets of Rs 318.58 crore at September 30, 2026, compared with Rs 214.76 crore at March 31, 2026. Cash and cash equivalents increased to Rs 20.08 crore from Rs 5.43 crore, trade receivables rose to Rs 93.40 crore from Rs 89.75 crore, and other current assets increased to Rs 68.78 crore from Rs 33.57 crore.

Operating activities used Rs 70.97 crore in the six months ended September 30, 2026, compared with an outflow of Rs 15.45 crore in the corresponding 2025 period. The cash-flow statement records a Rs 45.32 crore increase in other assets and a Rs 24.60 crore pre-tax loss, while investing activities used a further Rs 29.51 crore, including Rs 20.07 crore for intangible assets under development.

Financing activities generated Rs 115.26 crore in the six months, following Rs 145.78 crore of proceeds from the initial public offering, or IPO. The company also repaid Rs 36.40 crore of long-term borrowings, paid Rs 4.16 crore in interest and other borrowing costs, and paid dividends of Rs 2.32 crore.

How did the IPO and financial review affect CSM Technologies’ disclosures?

CSM Technologies completed its IPO of 1,29,01,000 equity shares of face value Rs 10 each at an issue price of Rs 113 per share during the quarter ended June 30, 2026. The shares were allotted on June 30, 2026 and listed on the National Stock Exchange of India Limited and BSE Limited on July 2, 2026.

The company recognised Rs 12.90 crore in additional equity share capital and Rs 132.88 crore in securities premium from the IPO. It incurred Rs 16.58 crore of IPO-related expenses, against Rs 17 crore disclosed in the prospectus, but said adjustment against the securities premium account would be deferred because certain supporting bills had not been submitted.

SRB & Associates reviewed the unaudited consolidated results approved by CSM Technologies’ board on November 13, 2026, rather than conducting an audit. Five overseas subsidiaries contributed combined quarterly revenue of Rs 3.43 crore and net profit of Rs 85.69 lakh based on management-certified information, while the Indian subsidiary reported revenue of Rs 4.26 crore and profit of Rs 1.27 crore for the quarter.

Conclusion

CSM Technologies’ September-quarter result reflects both lower revenue and higher employee costs: revenue from operations fell by Rs 23.39 crore from a year earlier while employee benefit expense rose by Rs 8.45 crore. The same pattern continued over the first half, when a Rs 15.73 crore reduction in total income coincided with a Rs 17.29 crore increase in total expenses.

The next disclosed matter to watch is the deferred adjustment of Rs 16.58 crore of IPO expenses against securities premium once supporting bills are received. Investors can also monitor how the Rs 145.78 crore IPO proceeds, the Rs 70.97 crore operating cash outflow and the Rs 20.07 crore investment in intangible assets under development affect subsequent reported periods.