Desco Infratech gets 34% of H1 revenue from new segments

Desco Infratech Limited generated Rs 25.3726 crore, or 33.8%, of its Rs 75.0494 crore standalone revenue from operations through general construction service and power distribution in the half year ended September 30, 2026. General construction contributed Rs 21.4738 crore and power distribution contributed Rs 3.8988 crore, while city gas distribution remained the largest segment.

How much revenue came from Desco Infratech’s diversified segments?

Desco Infratech’s general construction service and power distribution segments produced Rs 25.3726 crore of revenue in the half year ended September 30, 2026. Their combined contribution was 33.8% of the company’s Rs 75.0494 crore revenue from operations, based on the three reportable segments disclosed under Accounting Standard 17, or AS 17, on segment reporting.

City gas distribution generated Rs 49.6768 crore in the September 2026 half year, representing the remaining 66.2% of revenue from operations. Desco Infratech identifies city gas distribution, general construction service and power distribution as its reportable businesses, with segment identification based on services, operational activities and financial information available to management.

How did Desco Infratech’s revenue mix change between half years?

Desco Infratech’s revenue from operations fell by Rs 1.5236 crore from Rs 76.5730 crore in the half year ended March 31, 2026 to Rs 75.0494 crore in the half year ended September 30, 2026. City gas distribution increased by Rs 8.3707 crore over the two periods, but general construction service declined by Rs 13.7931 crore.

General construction service revenue of Rs 21.4738 crore in the September 2026 half year remained substantially above Rs 10.52 lakh reported in the corresponding half year ended September 30, 2025. Power distribution was reported separately at Rs 3.8988 crore in September 2026, whereas the two comparative half-year columns do not show a separately reported power-distribution revenue figure.

The filing says Desco Infratech has diversified into power distribution infrastructure, general construction services and other allied infrastructure development activities alongside its existing business segments. It separately disclosed the September 2026 segment data based on service nature, operational activity and the materiality of revenue generated.

Which segments generated Desco Infratech’s reported result?

Desco Infratech reported total segment result before exceptional items, tax and interest of Rs 14.1606 crore for the half year ended September 30, 2026. City gas distribution generated Rs 10.1471 crore, general construction service generated Rs 3.5263 crore and power distribution generated Rs 48.72 lakh under that segment-performance measure.

The aggregate segment result was lower than Rs 14.6693 crore in the half year ended March 31, 2026. City gas distribution’s segment result rose from Rs 9.9524 crore, while general construction service’s result fell from Rs 4.7169 crore; no separate power-distribution result was shown in that preceding half-year column.

Profit before tax was Rs 12.8066 crore in the September 2026 half year after other income of Rs 23.86 lakh and interest expense of Rs 1.5926 crore. In the March 2026 half year, profit before tax was Rs 13.6478 crore, with other income shown as a negative Rs 10.02 lakh and interest expense of Rs 92.13 lakh.

What assets and liabilities were allocated to each segment?

Desco Infratech reported segment assets of Rs 151.8745 crore as of September 30, 2026, compared with Rs 103.9505 crore as of March 31, 2026. City gas distribution accounted for Rs 131.2156 crore, general construction service for Rs 20.1659 crore and power distribution for Rs 49.30 lakh at the September reporting date.

The Rs 47.9240 crore increase in total segment assets since March was led by city gas distribution, where assets rose by Rs 35.8440 crore from Rs 95.3716 crore. General construction service assets rose by Rs 11.5870 crore from Rs 8.5789 crore, while the September 2026 disclosure separately allocated Rs 49.30 lakh of assets to power distribution.

Total segment liabilities were Rs 71.5267 crore on September 30, 2026, compared with Rs 33.1049 crore at March 31, 2026. City gas distribution liabilities were Rs 42.0055 crore, general construction service liabilities were Rs 25.3391 crore and power distribution liabilities were Rs 4.1821 crore.

What does Desco Infratech say about its infrastructure activities?

Desco Infratech says it provides infrastructure development, civil construction, engineering, procurement and construction, or EPC, installation, testing, commissioning, operation and maintenance services on a contractual basis. Its disclosed work includes city gas distribution networks, water supply and distribution systems, power transmission and distribution infrastructure, renewable-energy projects and allied infrastructure works.

The company’s September 2026 segment note says revenue, results, assets and liabilities include directly attributable amounts as well as allocations made on a consistent basis. It also states that inter-segment transactions are eliminated on consolidation and that segment performance is reviewed before tax and interest.

Desco Infratech’s standalone cash-flow statement recorded net operating cash outflow of Rs 14.2703 crore for the half year ended September 30, 2026. The statement showed a Rs 26.2424 crore increase in sundry debtors and a Rs 17.1813 crore increase in other current assets, partly offset by a Rs 15.1693 crore increase in trade payables.

Conclusion

Desco Infratech’s September 2026 disclosure shows that city gas distribution remained its largest business at Rs 49.6768 crore of revenue, while general construction service and power distribution supplied Rs 25.3726 crore together. The diversified segments therefore accounted for 33.8% of the Rs 75.0494 crore half-year revenue base and generated Rs 4.0135 crore of the Rs 14.1606 crore aggregate segment result.

The next issue to watch is whether power distribution continues to be separately material after its Rs 3.8988 crore September 2026 contribution and whether general construction service changes from Rs 21.4738 crore after recording Rs 35.2669 crore in the preceding half year. Desco Infratech also disclosed that Desco Global FZ-LLC, incorporated on March 25, 2026, had not commenced commercial operations and had no assets or liabilities as of September 30, 2026.