EnFuse says ₹5.55 crore non-cash charges exceeded H1 loss

EnFuse reported a Rs 3.23 crore standalone net loss for H1 FY26-27 ended 30 September 2026, while it identified Rs 5.55 crore of depreciation and amortisation, deferred costs and gratuity provision as non-cash charges that exceeded the reported loss. EnFuse says none of those three items involved a cash outflow during the period.

What caused EnFuse’s H1 FY26-27 standalone loss?

EnFuse says its Rs 3.23 crore standalone loss was largely due to three non-cash charges and provisions totalling Rs 5.55 crore in H1 FY26-27. Depreciation and amortisation were Rs 2.90 crore, deferred costs were Rs 2.14 crore and the gratuity provision was Rs 51 lakh. The company states that none involved a cash outflow in the six-month period.

The deferred-cost charge reflects project costs paid in earlier periods and charged as related revenue is recognised, according to EnFuse. The presentation does not separately quantify the cash paid in earlier periods, identify the underlying projects, or provide an adjusted earnings or operating-cash-flow measure for H1 FY26-27.

The standalone income statement recorded a loss before tax of Rs 3.3387 crore, following a Rs 20.06 lakh prior-period item. A deferred-tax credit of Rs 11.10 lakh resulted in a loss from continuing operations of Rs 3.2277 crore, which EnFuse describes in its financial update as a Rs 3.23 crore standalone net loss. Basic and diluted loss per share were Rs 3.65 on 88.48 lakh paid-up equity shares.

How did EnFuse’s income and costs change from last year?

EnFuse’s standalone revenue from operations declined to Rs 23.2057 crore in H1 FY26-27 from Rs 31.2822 crore in H1 FY25-26. Total income, including other income, fell to Rs 23.7841 crore from Rs 31.7447 crore, while total expenses declined to Rs 26.9222 crore from Rs 40.3905 crore.

EnFuse’s total expenses fell by Rs 13.4683 crore year on year, more than the Rs 7.9606 crore reduction in total income. Deferred cost declined by Rs 5.053 crore, employee benefits expense by Rs 4.9892 crore and other expenses by Rs 3.2745 crore. Finance costs increased to Rs 1.6035 crore from Rs 1.4442 crore.

The standalone loss from continuing operations narrowed to Rs 3.2277 crore from Rs 8.5198 crore a year earlier. It was also below the Rs 6.897 crore loss reported for H2 FY25-26. The presentation therefore shows a smaller reported loss alongside lower revenue and lower expenses, rather than reported profitability.

How does EnFuse’s H1 loss relate to its balance sheet?

EnFuse’s standalone shareholders’ funds were Rs 16.3883 crore at 30 September 2026, compared with Rs 19.6161 crore at 31 March 2026. The Rs 3.2278 crore decline was close to the Rs 3.2277 crore H1 loss from continuing operations. Paid-up share capital was unchanged at Rs 8.8476 crore, while reserves and surplus fell to Rs 7.5407 crore from Rs 10.7685 crore.

Standalone borrowings totalled Rs 27.1489 crore at 30 September 2026, down from Rs 28.9727 crore at 31 March 2026. Long-term borrowings declined to Rs 5.3381 crore from Rs 6.6537 crore and short-term borrowings declined to Rs 21.8108 crore from Rs 22.319 crore. Finance costs were Rs 1.6035 crore in H1 FY26-27.

Trade receivables increased to Rs 11.54 crore at 30 September 2026 from Rs 6.0048 crore at 31 March 2026. Cash and bank balances decreased to Rs 5.1687 crore from Rs 5.2917 crore, while other current assets fell to Rs 6.8228 crore from Rs 16.5532 crore. Total standalone assets were Rs 50.6706 crore, compared with Rs 54.7714 crore six months earlier.

What is EnFuse planning for the second half?

EnFuse’s H2 priorities are to grow existing client relationships, validate AI-related products with customers and manage project cash cycles. Its stated product plans cover targeted pilots for Tagi5, its tagging platform; proofs of concept, or PoCs, for ProctifAI, its proctoring platform; and further testing of eKYC, its electronic know-your-customer platform.

EnFuse reported three new logos in H1 FY26-27, all international clients in artificial intelligence and machine learning, competitive intelligence and analytics. It completed seven PoCs, including an approved eCommerce PoC, and said nine accounts were committed for FY26-27. The eight client accounts and one business-to-government, or B2G, programme represented more than 93% of H1 business-to-business revenue.

EnFuse expects a fourth new client in AI data services to join in H2. Its pipeline includes pilots, submitted tenders, early-stage discussions and opportunities with existing international and B2G clients. EnFuse says new work depends on client approval and signed contracts, and it does not provide revenue guidance.

Conclusion

EnFuse’s Rs 5.55 crore non-cash charge total was Rs 2.32 crore greater than its Rs 3.23 crore standalone H1 FY26-27 loss. The company’s disclosure separates depreciation and amortisation, deferred project costs recognised with related revenue, and a gratuity provision from period cash outflows, but it does not provide an adjusted profit or operating-cash-flow reconciliation.

The next period will test EnFuse’s plans to convert seven completed PoCs, product pilots and committed-account activity into approved and signed work. Its stated focus on milestone certification, billing and collections is also relevant after standalone trade receivables rose to Rs 11.54 crore at 30 September 2026. EnFuse has disclosed no H2 revenue guidance.