Edvenswa Q2 revenue rises 48%, while profit after tax falls 98%

Edvenswa Enterprises Limited reported revenue from operations of Rs 44.3275 crore for the quarter ended September 30, 2026, up 48% year on year, while profit after tax fell 98% to Rs 3.31 lakh from Rs 1.8075 crore as cost of inputs rose 84% to Rs 34.9013 crore. The board approved the unaudited consolidated results on November 13, 2026.

Why did Edvenswa's profit after tax fall despite higher revenue?

Edvenswa's profit after tax fell because total expenses grew faster than total revenue in the September 2026 quarter. Total revenue, which includes other income, increased 48% to Rs 44.3886 crore from Rs 30.0493 crore a year earlier, while total expenses rose 59% to Rs 44.3175 crore from Rs 27.9265 crore. This left profit before tax at Rs 7.11 lakh, compared with Rs 2.1228 crore in the September 2025 quarter.

Cost of inputs was the largest expense movement, increasing by Rs 15.9321 crore year on year to Rs 34.9013 crore from Rs 18.9692 crore. The increase in input costs exceeded the Rs 14.3591 crore rise in revenue from operations over the same comparison. Employee benefits expense rose to Rs 7.1688 crore from Rs 6.9208 crore, while other expenses increased to Rs 1.9089 crore from Rs 1.0478 crore.

The tax lines also changed between the two quarters. Edvenswa recorded no current-tax charge in the September 2026 quarter, compared with Rs 33.21 lakh a year earlier, but reported an Rs 3.80 lakh expense under income tax relating to earlier years, versus an Rs 1.68 lakh credit in the September 2025 quarter. The filing says this earlier-years line represents refunds received from United States Internal Revenue Service authorities by Edvenswa Tech Inc. for earlier years.

How did Edvenswa perform against the June 2026 quarter?

Edvenswa increased revenue from operations by 22% from Rs 36.2403 crore in the quarter ended June 30, 2026 to Rs 44.3275 crore in the September quarter. Total revenue rose from Rs 36.4917 crore to Rs 44.3886 crore, even as other income declined from Rs 25.14 lakh to Rs 6.11 lakh. The increase in operating revenue therefore accounted for the quarter-on-quarter rise in total revenue.

Profitability declined sequentially because costs rose more than revenue. Cost of inputs increased by Rs 9.6675 crore from Rs 25.2338 crore in June 2026, exceeding the Rs 8.0872 crore rise in revenue from operations. Total expenses rose to Rs 44.3175 crore from Rs 35.9830 crore, while profit before tax fell from Rs 50.87 lakh to Rs 7.11 lakh and profit after tax fell from Rs 45.42 lakh to Rs 3.31 lakh.

Employee benefits expense increased to Rs 7.1688 crore from Rs 6.4715 crore in the preceding quarter. Other expenses, however, declined to Rs 1.9089 crore from Rs 3.7723 crore, finance cost declined to Rs 4.82 lakh from Rs 21.78 lakh, and depreciation and amortisation was Rs 29.03 lakh against Rs 28.76 lakh. These movements show that the higher input-cost line outweighed declines in several other expense categories.

What do Edvenswa's first-half results show?

Edvenswa reported revenue from operations of Rs 80.5678 crore for the period ended September 30, 2026, up 14% from Rs 70.3966 crore in the corresponding 2025 period. Total revenue increased to Rs 80.8803 crore from Rs 70.6113 crore, but total expenses rose 23% to Rs 80.3005 crore from Rs 65.1590 crore. Profit before tax consequently fell to Rs 57.98 lakh from Rs 5.4523 crore.

First-half profit after tax was Rs 48.73 lakh, down 92% from Rs 6.2031 crore in the corresponding prior-year period. Cost of inputs rose to Rs 60.1351 crore from Rs 47.3593 crore, while employee benefits expense increased to Rs 13.6403 crore from Rs 13.4385 crore. The results statement identifies software development as Edvenswa's sole reportable business segment, so it provides no separate segment revenue or profit data.

Total comprehensive income for the six-month period was Rs 1.3036 crore, compared with Rs 8.1441 crore a year earlier. Other comprehensive income was Rs 81.63 lakh, down from Rs 1.9410 crore, while basic and diluted earnings per share, not annualised, were Rs 0.17 against Rs 2.12. Paid-up share capital was unchanged at Rs 29.2160 crore at September 30, 2026.

What changed in Edvenswa's balance sheet and cash flow?

Edvenswa's total assets were Rs 155.0301 crore at September 30, 2026, compared with Rs 153.4095 crore at March 31, 2026. Intangible assets increased to Rs 41.1510 crore from Rs 15.3714 crore, and intangible assets under development rose to Rs 1.8017 crore from Rs 55.62 lakh. Trade receivables increased to Rs 25.8403 crore from Rs 13.0370 crore during the same period.

Cash and cash equivalents fell to Rs 11.2133 crore at September 30 from Rs 12.6039 crore at March 31. The cash-flow statement, labelled Q2 FY 2026-27, reported net cash flow from operating activities of Rs 25.0227 crore, compared with an outflow of Rs 13.8872 crore for 2025-26. A Rs 29.1768 crore decrease in short-term loans and advances was partly offset by a Rs 12.8034 crore increase in trade receivables.

Net cash used in investing activities was Rs 27.5361 crore, compared with Rs 2.3912 crore in 2025-26. The investing outflow included Rs 26.2808 crore for acquiring tangible and intangible assets and Rs 1.2455 crore for changes in intangible assets under development. Net cash and cash equivalents decreased by Rs 1.3907 crore, after a Rs 1.1227 crore net inflow from financing activities.

Conclusion

Edvenswa's September 2026-quarter results show that 48% growth in revenue from operations to Rs 44.3275 crore did not translate into higher earnings. Cost of inputs rose 84% to Rs 34.9013 crore, total expenses rose 59%, and profit after tax declined to Rs 3.31 lakh from Rs 1.8075 crore. The first-half comparison followed the same pattern, with expenses growing 23% against 14% revenue growth.

The next reported results will show whether input costs remain higher relative to revenue and whether the September 2026 increase in trade receivables to Rs 25.8403 crore changes. Subsequent filings can also show the effect of Rs 27.5361 crore in reported investing cash outflows and the rise in intangible assets to Rs 41.1510 crore, as Edvenswa disclosed no separate target or forward plan in this results filing.