Euphoria Infotech September-half PBT falls 67% to Rs 35.16 lakh

Euphoria Infotech (India) Limited reported standalone profit before tax of Rs 35.16 lakh for the half year ended September 30, 2026, 67% below a year earlier, after revenue from operations fell 27% to Rs 4.63 crore and net cash used in operating activities was Rs 2.28 crore.

What did Euphoria Infotech report for the September half-year?

Euphoria Infotech reported revenue from operations of Rs 4.63 crore for the half year ended September 30, 2026, compared with Rs 6.31 crore in the corresponding half of 2025. Other income declined to Rs 2.37 lakh from Rs 4.38 lakh, taking total revenue to Rs 4.65 crore from Rs 6.36 crore. The company reported its operations as a single segment, development of information technology.

Profit before tax, or PBT, declined to Rs 35.16 lakh from Rs 1.08 crore in the year-earlier half. The immediately preceding half year ended March 31, 2026 recorded revenue from operations of Rs 8.91 crore and PBT of Rs 1.20 crore. Euphoria Infotech reported no exceptional item in the three half-year periods shown in its standalone results.

Euphoria Infotech reported profit after tax of Rs 2.17 lakh, compared with Rs 65.47 lakh for the half year ended September 30, 2025. Total tax expense was Rs 32.99 lakh, including current tax of Rs 15.27 lakh, a deferred-tax credit of Rs 2.23 lakh and Rs 19.95 lakh of income tax for earlier years. Basic and diluted earnings per share were Rs 0.07, against Rs 2.26 a year earlier.

Why did Euphoria Infotech’s profit before tax decline?

Euphoria Infotech’s PBT declined because total revenue fell by Rs 1.70 crore while total expenses decreased by Rs 97.35 lakh. The gap between revenue and expenses therefore narrowed to Rs 35.16 lakh in the September 2026 half from Rs 1.08 crore in the September 2025 half. The reported decline in PBT was about 67% year on year.

Cost of equipment and services consumed fell by Rs 67.26 lakh to Rs 1.29 crore, and employee benefit expense declined by Rs 33.01 lakh to Rs 1.92 crore. Other expenses decreased to Rs 64.61 lakh from Rs 81 lakh. Changes in inventories were a credit of Rs 3.84 lakh in the September 2026 half, compared with an expense of Rs 1.77 lakh in the corresponding prior-year half.

Euphoria Infotech’s finance costs rose to Rs 33.30 lakh from Rs 11.24 lakh despite the reduction in operating costs. Depreciation and amortisation increased to Rs 15.44 lakh from Rs 12.57 lakh. The higher finance cost coincided with increases in long-term and short-term borrowings between March 31, 2026 and September 30, 2026.

How did working capital affect Euphoria Infotech’s cash flow?

Euphoria Infotech used Rs 2.28 crore in operating activities during the half year ended September 30, 2026. This compares with net cash used in operating activities of Rs 3.87 crore for the full year ended March 31, 2026. Operating profit before working-capital changes was Rs 86.53 lakh in the September 2026 half, including PBT of Rs 35.16 lakh and interest expense of Rs 33.30 lakh.

Working-capital movements absorbed Rs 2.36 crore of cash on a net basis. The cash-flow statement records a Rs 6.50 crore increase in trade receivables and other assets, partly offset by a Rs 4.14 crore increase in trade payables and other liabilities. Cash used in operations was Rs 1.49 crore before taxes paid, while taxes paid were Rs 79.28 lakh.

Trade receivables rose to Rs 16.06 crore at September 30, 2026 from Rs 9.10 crore at March 31, 2026. Inventories increased to Rs 16.41 crore from Rs 15.77 crore over the same period. Other current assets were Rs 2.33 crore, compared with Rs 2.17 crore at March 31, 2026, while cash and bank balances declined to Rs 41.23 lakh from Rs 42.42 lakh.

What changed in Euphoria Infotech’s borrowings and liabilities?

Euphoria Infotech’s combined long-term and short-term borrowings increased by Rs 2.62 crore during the September 2026 half. Long-term borrowings rose to Rs 2.83 crore from Rs 1.16 crore, while short-term borrowings increased to Rs 5.06 crore from Rs 4.11 crore. The cash-flow statement reported net proceeds from borrowings of Rs 2.62 crore.

Euphoria Infotech’s trade payables to creditors other than micro and small enterprises rose to Rs 9.09 crore from Rs 3.79 crore. Dues to micro and small enterprises increased to Rs 48.90 lakh from Rs 40.49 lakh. Other current liabilities declined to Rs 89.51 lakh from Rs 2.16 crore, and short-term provisions decreased to Rs 63.37 lakh from Rs 1.07 crore.

What did Euphoria Infotech disclose about the results review and reporting basis?

Euphoria Infotech’s audit committee reviewed, and its board approved, the standalone results on November 14, 2026. Baid Agarwal Singhi & Co. issued a limited-review report saying that nothing had come to its attention to indicate that the unaudited standalone results were materially misstated under applicable accounting standards and listing rules.

Euphoria Infotech prepared the results under Accounting Standard 25, which covers interim financial reporting. The filing says companies listed on an SME exchange are exempt from compulsory adoption of Indian Accounting Standards under the cited Ministry of Corporate Affairs notification dated February 16, 2015. Half-yearly earnings per share are not annualised.

Euphoria Infotech also said it completed a salary restructuring exercise following the notification of four Labour Codes on November 21, 2025. The filing does not quantify the effect of that exercise on its September 2026 revenue, expenses, tax or cash flow. It also states that corresponding prior-period figures were regrouped or reclassified where necessary.

Conclusion

Euphoria Infotech’s September 2026 standalone results show a lower revenue base of Rs 4.63 crore, PBT of Rs 35.16 lakh and profit after tax of Rs 2.17 lakh. The cash-flow statement also shows that the Rs 6.50 crore increase in receivables and other assets exceeded the Rs 4.14 crore increase in payables and other liabilities, contributing to Rs 2.28 crore of cash used in operations.

The next point to watch is whether trade receivables of Rs 16.06 crore at September 30, 2026 convert into operating cash, given the reported working-capital outflow. Borrowings also increased by Rs 2.62 crore in the half year and finance costs reached Rs 33.30 lakh, making future movements in receivables, borrowings and cash balances relevant disclosed matters.