Evans Electric returns to Rs 43.11 lakh half-year profit

Evans Electric Limited returned to a net profit of Rs 43.11 lakh for the half year ended September 30, 2026, after a Rs 75.13 lakh loss in the half year ended March 31, 2026, as total income from operations rose to Rs 6.21 crore and total expenditure fell to Rs 5.74 crore.

How did Evans Electric return to profit in September 2026?

Evans Electric recorded profit after tax of Rs 43.11 lakh for the half year ended September 30, 2026, compared with a loss after tax of Rs 75.13 lakh in the preceding half year ended March 31, 2026. Profit before tax was Rs 54.84 lakh, versus a pre-tax loss of Rs 62.44 lakh in March 2026. The filing reported no exceptional or extraordinary items in either period.

The turnaround was also visible before other income and tax. Profit from operations before other income and exceptional items was Rs 46.27 lakh in September 2026, against an operating loss of Rs 1.15 crore in March 2026. Other income was Rs 8.57 lakh in the September period, lower than Rs 52.41 lakh in the preceding half year, so the pre-tax result reflected the change in operating performance rather than higher other income.

Tax expense was Rs 11.73 lakh for the half year to September 2026, compared with Rs 12.69 lakh for the half year to March 2026. After that charge, basic and diluted earnings per share were Rs 0.79, compared with a loss per share of Rs 1.37 in the prior half year. Paid-up equity share capital was unchanged at Rs 5.49 crore, with a face value of Rs 10 per share.

Why did Evans Electric's operating result improve?

Evans Electric's operating result improved because total income from operations increased by Rs 1.40 crore from the March 2026 half year while total expenditure declined by Rs 20.90 lakh. Total income rose to Rs 6.21 crore in the September 2026 half year from Rs 4.80 crore in March 2026, while total expenditure moved down to Rs 5.74 crore from Rs 5.95 crore.

The largest expenditure movement was changes in inventories of finished goods, work in progress and stock in trade. This line was a credit of Rs 1.88 crore in the September 2026 half year, compared with an expense of Rs 1.04 crore in the March 2026 half year. Cost of materials consumed increased to Rs 2.44 crore from Rs 56.81 lakh, while employee benefits expense declined to Rs 2.55 crore from Rs 2.65 crore.

Other expenses rose to Rs 2.45 crore in the September half year from Rs 1.24 crore in the March half year. Finance costs, however, decreased to Rs 4.99 lakh from Rs 30.88 lakh. Together, these line-item changes shifted profit or loss from operations before other income from a Rs 1.15 crore loss to a Rs 46.27 lakh profit.

Was Evans Electric's income higher than a year earlier?

Evans Electric's total income from operations was lower than a year earlier despite the sequential return to profit. Total income was Rs 6.21 crore in the half year ended September 30, 2026, compared with Rs 6.88 crore in the half year ended September 30, 2025. Net sales or income from operations declined to Rs 6.18 crore from Rs 6.87 crore, while other operating income increased to Rs 2.60 lakh from Rs 89,000.

Net profit nevertheless increased to Rs 43.11 lakh from Rs 32.07 lakh in the year-earlier half year. Operating profit before other income was Rs 46.27 lakh, above Rs 44.53 lakh a year earlier, but other income fell to Rs 8.57 lakh from Rs 30.69 lakh. Profit before tax therefore decreased to Rs 54.84 lakh from Rs 75.22 lakh, while tax expense fell to Rs 11.73 lakh from Rs 43.15 lakh.

Total expenditure declined to Rs 5.74 crore from Rs 6.43 crore in the year-earlier period. Employee benefits expense was Rs 2.55 crore against Rs 3.21 crore, and other expenses were Rs 2.45 crore against Rs 3.22 crore. Cost of materials consumed increased to Rs 2.44 crore from Rs 51.68 lakh, while the inventory-change line was a Rs 1.88 crore credit compared with a Rs 64.07 lakh credit a year earlier.

What changed in Evans Electric's balance sheet and cash position?

Evans Electric's total assets increased to Rs 29.97 crore at September 30, 2026, from Rs 28.25 crore at March 31, 2026, while cash and cash equivalents fell to Rs 3.89 crore from Rs 6.45 crore. Shareholders' funds rose to Rs 25.43 crore from Rs 25.00 crore, reflecting reserves and surplus of Rs 19.94 crore, compared with Rs 19.51 crore at the March year end.

Current assets decreased to Rs 12.31 crore from Rs 13.19 crore. Inventories increased to Rs 2.45 crore from Rs 49.73 lakh, while trade receivables reduced to Rs 3.32 crore from Rs 3.65 crore. Other non-current assets rose to Rs 2.67 crore from Rs 57.48 lakh, and property, plant and equipment increased to Rs 3.74 crore from Rs 3.23 crore.

Evans Electric reported net cash used in operating activities of Rs 35.60 lakh for the half year ended September 30, 2026, compared with net cash generated of Rs 4.22 crore for the year ended March 31, 2026. Investing activities used Rs 2.35 crore in the September half year, including Rs 3.02 crore invested in term deposits and Rs 64.88 lakh invested in fixed assets. Net cash decreased by Rs 2.55 crore during the half year, although financing activities provided Rs 15.35 lakh.

What accounting and reporting qualifications apply to these results?

Evans Electric reported standalone, unaudited financial results for the half year ended September 30, 2026, which its Audit Committee reviewed and its Board took on record on November 5, 2026. The company said it operates in one segment, so segment reporting under Accounting Standard 17 was not applicable. The filing also says Evans Electric is exempt from Indian Accounting Standards applicability as a BSE SME-platform company under the cited rules.

Evans Electric recognises revenue from repairing and servicing when services are performed under agreements or arrangements with customers. It said actuarial valuation for gratuity and leave encashment will be carried out at the year end, meaning employee-benefit provisions may not be comparable between the September 2026 and March 2026 half years. Income-tax and deferred-tax provisions were made under the stated provisions of the Income Tax Act, 2025.

Conclusion

Evans Electric's September 2026 half-year result marks a sequential swing to Rs 43.11 lakh of net profit from a Rs 75.13 lakh loss, with operating income rising from Rs 4.80 crore to Rs 6.21 crore and total expenditure declining from Rs 5.95 crore to Rs 5.74 crore. The year-on-year comparison differs because income remained below the Rs 6.88 crore reported a year earlier, although net profit exceeded the prior Rs 32.07 lakh.

The next reporting period will indicate whether sales recover from the Rs 6.18 crore recorded in September 2026 and how the Rs 2.45 crore inventory balance, Rs 3.89 crore cash balance and Rs 35.60 lakh operating cash outflow develop. The year-end actuarial valuation will also determine gratuity and leave-encashment provisions that the company says are not comparable across the two half-year periods.