Elnet Technologies Limited revenue rises 12%, profit stays flat

Elnet Technologies Limited reported revenue from operations of Rs 7.00 crore for the quarter ended September 30, 2026, up 12% from Rs 6.25 crore a year earlier, while profit for the period was almost unchanged at Rs 5.04 crore versus Rs 5.02 crore. Bank balances other than cash equivalents rose to Rs 113.76 crore at September 30.

Why did Elnet Technologies’ profit stay flat despite revenue growth?

Elnet Technologies’ September-quarter profit remained nearly flat because the increase in profit before tax was largely offset by higher tax expense. Profit before tax rose by Rs 19.72 lakh to Rs 6.60 crore for the quarter ended September 30, 2026, but tax expense increased by Rs 18.24 lakh to Rs 1.56 crore, leaving profit after tax only Rs 1.50 lakh above the prior-year quarter.

Revenue from operations increased to Rs 7.00 crore from Rs 6.25 crore in the quarter ended September 30, 2025. Total income, which includes other income, rose to Rs 9.54 crore from Rs 9.10 crore, while total expenses increased to Rs 2.94 crore from Rs 2.69 crore over the same comparison.

Within the expense line, electricity charges increased by Rs 24.01 lakh to Rs 84.93 lakh in the September 2026 quarter, while employee benefit expenses rose by Rs 6.80 lakh to Rs 58.65 lakh. Finance costs were Rs 20.08 lakh, compared with Rs 14.01 lakh a year earlier, whereas other expenses declined to Rs 83.20 lakh from Rs 97.33 lakh.

How did Elnet Technologies perform in the first half?

Elnet Technologies reported first-half revenue from operations of Rs 13.75 crore for the six months ended September 30, 2026, compared with Rs 12.33 crore in the corresponding 2025 period. Profit for the six months was Rs 10.06 crore, only Rs 2.21 lakh above Rs 10.04 crore a year earlier, despite the Rs 1.42 crore increase in operating revenue.

Profit before tax rose to Rs 13.17 crore from Rs 12.28 crore in the six-month comparison, while tax expense increased to Rs 3.11 crore from Rs 2.23 crore. Total expenses rose by Rs 35.32 lakh to Rs 5.89 crore, including a Rs 32.28 lakh increase in electricity charges to Rs 1.69 crore and a Rs 19.05 lakh increase in employee benefit expenses to Rs 1.15 crore.

Other income fell to Rs 5.32 crore for the six months ended September 30, 2026 from Rs 5.48 crore in the prior-year period. The cash-flow statement separately recorded Rs 5.30 crore of interest income on deposits as an adjustment to profit before tax, while the results note identified promotion and maintenance of a software technology park as Elnet Technologies’ only reportable segment.

What changed in Elnet Technologies’ balance sheet?

Elnet Technologies’ total assets increased to Rs 207.41 crore at September 30, 2026 from Rs 195.61 crore at March 31, 2026. Current assets rose to Rs 134.90 crore from Rs 96.93 crore, while non-current assets declined to Rs 72.51 crore from Rs 98.68 crore over the six-month period.

Bank balances other than cash equivalents increased by Rs 33.56 crore to Rs 113.76 crore at September 30 from Rs 80.21 crore at March 31. Cash and cash equivalents also rose to Rs 11.66 crore from Rs 9.97 crore, and other current financial assets increased to Rs 7.49 crore from Rs 4.82 crore.

The rise in current financial holdings coincided with a decline in non-current other financial assets to Rs 34.93 crore from Rs 62.55 crore. Investments increased to Rs 5.75 crore from Rs 4.24 crore, property, plant and equipment rose to Rs 23.66 crore from Rs 23.07 crore, and capital work in progress fell to Rs 2.50 lakh from Rs 15 lakh.

Total equity increased to Rs 184.32 crore at September 30, 2026 from Rs 175.58 crore at March 31, including other equity of Rs 180.32 crore. Total liabilities rose to Rs 23.10 crore from Rs 20.03 crore, with current liabilities increasing to Rs 14.71 crore from Rs 11.57 crore; borrowings were unchanged at Rs 4.26 crore.

What does Elnet Technologies’ half-year cash flow show?

Elnet Technologies reported net cash used in operating activities of Rs 25.80 crore for the half year ended September 30, 2026. This contrasts with net cash generated from operating activities of Rs 33.96 crore for the full year ended March 31, 2026, so the two reported periods are not directly like for like.

The half-year cash-flow calculation began with profit before income tax of Rs 13.17 crore and reported Rs 9.22 crore after adjustments, including Rs 5.30 crore of interest income on deposits and Rs 91.87 lakh of depreciation and amortisation. A reported Rs 33.56 crore increase in other financial assets, alongside Rs 63.29 lakh increase in trade receivables, contributed to negative cash generated from operations of Rs 22.63 crore before tax.

Income taxes paid, net of refunds, were Rs 3.17 crore in the half year, taking the operating cash outflow to Rs 25.80 crore. Elnet Technologies also reported Rs 15.12 crore of interest income for the full year ended March 31, 2026, compared with the Rs 5.30 crore adjustment recorded in the September half-year statement.

Investing activities generated Rs 28.28 crore during the half year, chiefly reflecting Rs 27.62 crore from the maturity of, or investment in, bank fixed deposits with maturities above three months. The company spent Rs 1.53 crore on property, plant and equipment and capital work in progress, received Rs 2.19 crore of interest on deposits, and paid a Rs 80 lakh dividend through financing activities.

The combined cash-flow movements increased cash and cash equivalents by Rs 1.69 crore to Rs 11.66 crore at September 30, 2026. This closing balance comprised Rs 11.40 crore in deposit accounts maturing within three months, Rs 25.53 lakh in current accounts and Rs 50,000 in cash on hand.

Conclusion

Elnet Technologies increased revenue in both the September quarter and first half of fiscal 2027, but higher expenses and tax expense left post-tax profit largely unchanged. The balance sheet shift was marked by a Rs 33.56 crore increase in bank balances other than cash equivalents and a corresponding reduction in non-current other financial assets.

The unresolved item to watch in the next disclosed results is whether the half-year operating cash outflow of Rs 25.80 crore changes as financial-asset and receivable movements develop. Readers can also track whether revenue growth above the Rs 13.75 crore first-half level produces a wider increase in profit after tax than the Rs 10.06 crore reported for the six months ended September 30, 2026.