DAPS Advertising Limited first-half profit rises 10% as revenue falls

DAPS Advertising Limited reported profit after tax of Rs 49.45 lakh for the half-year ended September 30, 2026, up 10% from Rs 44.79 lakh a year earlier, even as revenue from operations fell 5% to Rs 9.3662 crore. DAPS Advertising attributed the divergence to reduced print-media activity, improved outdoor-media activity and a changed business mix.

Why did DAPS Advertising’s revenue fall in the first half?

DAPS Advertising’s revenue fell because print-media activity was lower than in the corresponding half-year, with improved outdoor-media activity only partly offsetting that reduction. Revenue from operations was Rs 9.3662 crore for the half-year ended September 30, 2026, compared with Rs 9.8394 crore in the half-year ended September 30, 2025. Total income, which includes other income, declined to Rs 9.5942 crore from Rs 10.0857 crore.

DAPS Advertising reported one business segment and therefore did not provide separate revenue, profit or asset data for its print and outdoor-media activities. Its results note identifies the movement in those activities as the main reason for lower half-year revenue. Other income fell to Rs 22.80 lakh from Rs 24.63 lakh, while the Audit Committee and Board approved the unaudited results on November 12, 2026.

The comparison with the immediately preceding half-year also shows lower reported activity. Revenue from operations was Rs 12.3306 crore in the half-year ended March 31, 2026, compared with Rs 9.3662 crore in the September 2026 half-year. Total income declined from Rs 12.6283 crore to Rs 9.5942 crore; the March figures were audited, while the September figures were unaudited and subject to a limited review.

How did DAPS Advertising increase profit despite lower income?

DAPS Advertising increased profit because total expenses fell by more than total income, alongside the profitability improvement from the changed media mix that management disclosed. Total expenses declined to Rs 8.9357 crore in the September 2026 half-year from Rs 9.4846 crore a year earlier, a reduction of Rs 54.89 lakh. Profit before tax consequently rose to Rs 65.85 lakh from Rs 60.11 lakh.

Cost of services rendered fell to Rs 7.4936 crore from Rs 8.1579 crore, a reduction of Rs 66.43 lakh that exceeded the decline in total income. Employee benefits expense increased to Rs 80.20 lakh from Rs 71.65 lakh, and other expenses rose to Rs 46.30 lakh from Rs 42.81 lakh. Finance cost decreased to Rs 1.54 lakh from Rs 3.91 lakh, while depreciation and amortisation expense rose to Rs 16.17 lakh from Rs 14.30 lakh.

Income-tax expense was Rs 16.40 lakh for the September 2026 half-year, compared with Rs 15.32 lakh in the corresponding period. Profit after tax therefore increased by Rs 4.66 lakh to Rs 49.45 lakh, while basic and diluted earnings per equity share rose to Rs 0.96 from Rs 0.87. DAPS Advertising said half-year earnings per share are not annualised, and it reported no exceptional or extraordinary items in either corresponding half-year.

What changed in DAPS Advertising’s balance sheet?

DAPS Advertising’s total assets declined to Rs 22.2875 crore at September 30, 2026 from Rs 23.9845 crore at March 31, 2026, as cash and bank balances reduced. Cash and bank balances were Rs 6.7158 crore at September 30, compared with Rs 9.8207 crore at the March year-end. Trade receivables rose in the opposite direction to Rs 10.4273 crore from Rs 9.4733 crore.

Shareholders’ funds increased to Rs 18.5108 crore from Rs 18.0163 crore over the same six months. Reserves and surplus rose to Rs 13.3359 crore from Rs 12.8414 crore, while share capital was unchanged at Rs 5.1749 crore. Non-current liabilities were Rs 2.80 lakh at September 30, compared with Rs 3.44 lakh at March 31, after long-term borrowings of Rs 1.32 lakh were reduced to nil.

Current liabilities fell to Rs 3.7487 crore from Rs 5.9338 crore. Short-term borrowings decreased to Rs 4.08 lakh from Rs 1.4135 crore, and trade payables to creditors other than micro and small enterprises decreased to Rs 2.8638 crore from Rs 3.8319 crore. Other current liabilities increased to Rs 52.19 lakh from Rs 42.19 lakh, while short-term provisions rose to Rs 32.22 lakh from Rs 26.65 lakh.

What does DAPS Advertising’s cash flow show?

DAPS Advertising recorded net cash used in operating activities of Rs 1.9209 crore in the half-year ended September 30, 2026, compared with an outflow of Rs 94.64 lakh in the prior-year half. Operating profit before working-capital changes rose to Rs 64.34 lakh from Rs 53.69 lakh. However, working-capital movements produced an outflow of Rs 2.4071 crore, compared with Rs 1.3301 crore a year earlier.

The 2026 working-capital movement included a Rs 95.41 lakh increase in trade receivables and a Rs 96.82 lakh decrease in trade payables. Other current assets increased by Rs 62.45 lakh, while other current liabilities increased by Rs 10 lakh. Cash generated from operations was negative Rs 1.7637 crore, and income-tax payments of Rs 15.72 lakh brought the operating cash outflow to Rs 1.9209 crore.

Investing activities generated Rs 21.73 lakh of net cash, compared with Rs 30,000 in the half-year ended September 30, 2025. DAPS Advertising spent Rs 30.94 lakh on fixed assets, against Rs 7.21 lakh a year earlier, while a Rs 33.45 lakh decrease in security deposits added cash. Financing activities used Rs 1.4013 crore, compared with generation of Rs 1.6083 crore in the previous corresponding half, principally after short-term borrowings decreased by Rs 1.3727 crore.

The combined movements resulted in a net decrease in cash and cash equivalents of Rs 3.1049 crore, against an increase of Rs 66.49 lakh in the prior-year half. Closing cash and cash equivalents were Rs 6.7158 crore, compared with opening cash of Rs 9.8207 crore. The statutory auditors’ limited-review report said nothing had come to their attention indicating that the unaudited statement did not make required disclosures or contained a material misstatement.

Conclusion

DAPS Advertising’s September 2026 half-year results show lower sales alongside higher earnings: revenue from operations fell by Rs 47.32 lakh year on year, while profit after tax increased by Rs 4.66 lakh. Management attributed that outcome to lower print-media activity being partly offset by outdoor media and to a business-mix change that improved profitability, while lower service costs also supported profit before tax.

The next point to watch is cash conversion, particularly after trade receivables increased by Rs 95.41 lakh during the six months and operating activities used Rs 1.9209 crore of cash. DAPS Advertising disclosed no revenue target, business plan or segment-level outlook with the September 2026 results, leaving future print and outdoor-media activity as the principal unresolved operating variables.