Decipher Labs posts Rs 16.2536 crore half-year loss on bad debts

Decipher Labs Limited posted a consolidated loss of Rs 16.2536 crore for the half year ended September 30, 2026, versus a Rs 3.4066 crore loss a year earlier, as its cash-flow statement recorded Rs 14.6299 crore of bad debts written off and revenue from operations fell to Rs 5.4806 crore.

What caused Decipher Labs' first-half loss to widen?

Decipher Labs' first-half loss widened as other expenses increased to Rs 16.1259 crore for the half year ended September 30, 2026, from Rs 1.0156 crore in the corresponding 2025 period. The consolidated cash-flow statement separately records Rs 14.6299 crore of bad debts written off for the 2026 half year, while it records Rs 28.34 lakh for the year ended March 31, 2026.

Total expenses rose to Rs 21.8355 crore from Rs 10.6725 crore despite lower revenue, producing a loss before tax of Rs 16.2520 crore against a Rs 3.4034 crore loss a year earlier. Deferred-tax expense was Rs 0.16 lakh in the 2026 half year, compared with Rs 0.32 lakh in the prior-year half, resulting in the reported Rs 16.2536 crore loss attributable to owners of the parent.

The September 2026 quarter accounted for most of the half-year loss. Decipher Labs recorded a quarterly loss after tax of Rs 14.0689 crore, compared with a Rs 2.1855 crore loss in the June 2026 quarter and a Rs 2.01 lakh profit in the September 2025 quarter. Other expenses were Rs 14.3219 crore in the September quarter, versus Rs 1.8040 crore in the preceding quarter.

How did Decipher Labs' revenue change in the half year?

Decipher Labs' consolidated revenue from operations declined to Rs 5.4806 crore for the half year ended September 30, 2026, from Rs 7.2374 crore a year earlier. Including other income, total revenue was Rs 5.5835 crore, down from Rs 7.2691 crore, while the reduction in revenue occurred alongside the increase in other expenses.

Consultancy Services generated Rs 5.4766 crore of first-half segment revenue, compared with Rs 6.5624 crore in the prior-year period. Manufacturing and trading of pharmaceutical drugs generated Rs 0.40 lakh, down from Rs 67.50 lakh, meaning Consultancy Services accounted for nearly all of the Group's Rs 5.4806 crore revenue from operations in the 2026 half year.

Revenue improved sequentially in the September quarter but remained below the prior-year quarter. September-quarter revenue from operations was Rs 3.0667 crore, compared with Rs 2.4139 crore in June 2026 and Rs 4.3137 crore in September 2025. Consultancy Services supplied all September-quarter revenue, while pharmaceutical manufacturing and trading recorded no sales in that quarter.

Which Decipher Labs segment recorded the larger loss?

Decipher Labs' Consultancy Services segment recorded a loss before tax and interest of Rs 15.9977 crore for the half year ended September 30, 2026, compared with a Rs 3.2021 crore loss in the corresponding previous half. The pharmaceutical manufacturing and trading segment reported a Rs 25.43 lakh loss, compared with a Rs 20.13 lakh loss a year earlier.

Consultancy Services revenue fell by Rs 1.0858 crore year on year, from Rs 6.5624 crore to Rs 5.4766 crore, while its segment loss increased by Rs 12.7956 crore. Pharmaceutical revenue decreased by Rs 67.10 lakh, from Rs 67.50 lakh to Rs 0.40 lakh, and its segment loss increased by Rs 5.30 lakh.

The segment balance-sheet figures also changed materially by September 30, 2026. Consultancy Services segment assets were Rs 9.5589 crore, down from Rs 14.2644 crore a year earlier, while pharmaceutical segment assets were Rs 70.68 lakh, compared with Rs 9.4958 crore at September 30, 2025. Total consolidated segment assets were Rs 10.2657 crore at the latest half-year date.

What changed in Decipher Labs' balance sheet and cash flow?

Decipher Labs reported total consolidated assets of Rs 10.2657 crore at September 30, 2026, down from Rs 24.3308 crore at March 31, 2026. Other current assets declined to Rs 1.64 lakh from Rs 14.1072 crore, while trade receivables rose to Rs 2.9354 crore from Rs 2.5975 crore.

Other equity moved to a deficit of Rs 5.2814 crore at September 30, 2026 from positive other equity of Rs 10.5651 crore at March 31, 2026. Equity share capital was unchanged at Rs 10.10 crore; current borrowings increased to Rs 71.42 lakh from Rs 50.32 lakh, and trade payables other than to micro and small enterprises rose to Rs 2.3993 crore from Rs 1.1940 crore.

The consolidated cash-flow statement reports a net cash outflow from operating activities of Rs 35.22 lakh for the half year ended September 30, 2026. It shows a Rs 14.9678 crore increase in trade receivables and a Rs 13.8972 crore decrease in other assets, while financing activities generated Rs 21.10 lakh from increased borrowings; cash and cash equivalents ended the period at Rs 50.18 lakh, versus Rs 74.29 lakh at March 31, 2026.

What does Decipher Labs disclose about the Group and labour codes?

Decipher Labs' consolidated results include wholly owned subsidiary Decipher Software Solutions LLC in the United States and step-down subsidiary Decipher W.L.L. in Bahrain. The Board reviewed and approved the unaudited results for the quarter and half year ended September 30, 2026 on November 14, 2026, and the auditor issued a review conclusion rather than an audit opinion.

The filing says the four New Labour Codes became effective on November 21, 2025. Decipher Labs estimated no liability for its own employees and said it was evaluating other possible impacts, including for its contract workforce, following the consolidation of 29 existing labour laws under the codes.

Conclusion

Decipher Labs' half-year numbers show that the Rs 14.6299 crore bad-debt write-off disclosed in cash flows coincided with other expenses rising to Rs 16.1259 crore and a consolidated loss reaching Rs 16.2536 crore. Revenue from operations declined by Rs 1.7568 crore year on year, while Consultancy Services delivered almost all revenue and recorded the larger segment loss.

The next disclosed matter to watch is Decipher Labs' evaluation of New Labour Code effects on its contract workforce after estimating no liability for its own employees. Subsequent filings will also show whether trade receivables of Rs 2.9354 crore at September 30, 2026 and cash of Rs 50.18 lakh change after the reported operating cash outflow.