DiGiSPICE Q2 profit rises 24% despite quarterly revenue fall

DiGiSPICE Technologies Limited reported consolidated profit after tax of Rs 8.88 crore for the quarter ended September 30, 2026, up 24% from Rs 7.16 crore a year earlier, despite a 5% decline in revenue from operations to Rs 118.60 crore. Lower total expenses helped profit before tax rise to Rs 13.01 crore.

What were DiGiSPICE’s Q2 2026 consolidated results?

DiGiSPICE reported total income of Rs 124.99 crore for the quarter ended September 30, 2026, down from Rs 130.27 crore in the quarter ended September 30, 2025. Revenue from operations declined by Rs 5.98 crore year-on-year, while other income increased to Rs 6.39 crore from Rs 5.69 crore.

Total expenses fell by Rs 8.13 crore to Rs 111.98 crore in Q2 2026 from Rs 120.11 crore a year earlier. This meant profit before share of associates, exceptional items and tax increased to Rs 13.01 crore from Rs 10.16 crore, despite the Rs 5.28 crore decline in total income.

Profit after tax from continuing operations rose to Rs 9.53 crore in Q2 2026 from Rs 7.26 crore in Q2 2025. The group also reported a Rs 0.65 crore loss from discontinued operations, compared with a Rs 0.10 crore loss a year earlier, which reduced consolidated profit after tax to Rs 8.88 crore.

How did DiGiSPICE’s Financial Technology Services segment perform?

DiGiSPICE’s Financial Technology Services segment, identified in the filing as Spice Money, reported Q2 revenue of Rs 118.60 crore, compared with Rs 124.58 crore in the corresponding 2025 quarter. The segment represented all reported revenue from operations, with no intra-segment revenue deduction shown in the results.

Financial Technology Services segment profit before exceptional items, interest and tax increased to Rs 14.38 crore from Rs 12.57 crore a year earlier. The Rs 1.81 crore rise in segment profit came alongside a Rs 5.98 crore fall in segment revenue; the filing does not separately assign operational reasons for the change.

Cost of services rendered declined to Rs 65.72 crore from Rs 69.02 crore in Q2 2025, and other expenses fell to Rs 16.27 crore from Rs 17.62 crore. Employee benefits expense increased to Rs 27.62 crore from Rs 27.46 crore, while depreciation and amortisation reduced to Rs 1.14 crore from Rs 2.17 crore.

On a sequential basis, Financial Technology Services revenue rose from Rs 107.75 crore in the quarter ended June 30, 2026, to Rs 118.60 crore in the September quarter. Segment profit increased from Rs 13.58 crore to Rs 14.38 crore, while consolidated profit after tax rose from Rs 6.60 crore to Rs 8.88 crore.

What affected DiGiSPICE’s profit and discontinued operations?

DiGiSPICE reported no exceptional item in the quarter ended September 30, 2026, whereas the preceding June 2026 quarter included a Rs 2.08 crore impairment loss on an investment property in Kolkata. Management said the June impairment reflected its assessment of recoverable value using market evidence, ongoing sale discussions and indicative offers.

The group recorded an additional provision of Rs 0.85 crore during Q2 2026 to fully provide for the outstanding balance of an original Rs 5.10 crore receivable. The filing said a distributor had wrongfully obtained the amount in a merchant wallet without an actual deposit of funds, and that an independent agency had investigated the matter and remediation was completed.

Digital Technology Services was classified as discontinued operations after business operations were completely discontinued on July 1, 2024, except assets held for sale or disposal. This business recorded Q2 2026 income of Rs 0.18 crore and expenses of Rs 0.83 crore, resulting in a pre-tax and post-tax loss of Rs 0.65 crore.

Basic and diluted earnings per share were Rs 0.37 in Q2 2026, compared with Rs 0.30 in Q2 2025. Earnings per share from continuing operations were Rs 0.39 against Rs 0.30, while discontinued operations recorded a loss per share of Rs 0.02, unchanged from the June 2026 quarter.

What do DiGiSPICE’s half-year results and balance sheet show?

DiGiSPICE reported revenue from operations of Rs 226.35 crore for the half year ended September 30, 2026, down from Rs 248.34 crore in the corresponding prior-year period. Consolidated profit after tax nevertheless increased to Rs 15.48 crore from Rs 14.09 crore, while profit before tax rose to Rs 23.27 crore from Rs 19.66 crore.

The first-half result includes the Rs 2.08 crore impairment recognised in the June 2026 quarter. Profit after tax from continuing operations rose to Rs 16.48 crore from Rs 14.27 crore, while the discontinued business generated a Rs 1.01 crore loss compared with a Rs 0.18 crore loss in the prior-year half.

Total assets stood at Rs 794.69 crore at September 30, 2026, compared with Rs 806.16 crore at March 31, 2026. Cash and cash equivalents fell by Rs 46.10 crore to Rs 168.89 crore, while current borrowings increased by Rs 19.19 crore to Rs 101.14 crore.

Total equity increased to Rs 251.50 crore at September 30, 2026, from Rs 236.49 crore at March 31, 2026. Financial Technology Services assets were Rs 642.53 crore, compared with Rs 568.57 crore a year earlier, while segment liabilities were Rs 525.19 crore against Rs 479.55 crore.

What is pending in DiGiSPICE’s proposed merger scheme?

DiGiSPICE has proposed to merge Spice Money Limited, E-Arth Travel Solutions Private Limited and Vikasni Fintech Private Limited into the holding company. Shareholders approved the scheme on July 13, 2026, after which the second-motion petition was filed with the National Company Law Tribunal, or NCLT, on July 24, 2026.

The scheme remains conditional on NCLT and regulatory approvals, as well as disposal of equity shareholding in the transferee company held by two specified non-promoter trusts. DiGiSPICE said its financial results for the quarter and half year ended September 30, 2026, were presented without giving effect to the proposed merger.

The audit committee reviewed, and the board approved, the unaudited consolidated results on November 3, 2026. S.R. Batliboi & Co. LLP said nothing had come to its attention to indicate a material misstatement, while stating that its interim review provides moderate assurance rather than an audit opinion.

Conclusion

DiGiSPICE increased Q2 consolidated profit despite lower revenue because expenses declined by more than income, lifting profit before tax to Rs 13.01 crore. Financial Technology Services remained the group’s only reported operating-revenue segment and delivered a Rs 14.38 crore segment profit, up from Rs 12.57 crore a year earlier.

The next disclosed matter to watch is the pending NCLT and regulatory approval process for the merger of Spice Money, E-Arth Travel Solutions and Vikasni Fintech. DiGiSPICE also continues to report Rs 13.79 crore of assets held for sale within discontinued operations following the July 1, 2024 discontinuation of Digital Technology Services.