Infonative revenue rises, but PBT falls on employee costs

Infonative Solutions Limited reported Rs 14.75 crore in revenue from operations for the half year ended September 30, 2026, up 22.2% year on year, while profit before tax fell 28.8% to Rs 1.44 crore as employee-benefit expense increased to Rs 11.42 crore. The unaudited standalone results were approved on November 14, 2026.

Why did Infonative's profit before tax fall despite higher revenue?

Infonative's profit before tax fell to Rs 1.44 crore in the half year ended September 30, 2026 from Rs 2.03 crore in the corresponding 2025 period, even as revenue from operations rose by Rs 2.68 crore to Rs 14.75 crore. Total income was Rs 15.53 crore, including Rs 77.53 lakh of other income.

Employee-benefit expense was the largest disclosed cost movement, rising to Rs 11.42 crore from Rs 6.67 crore a year earlier. The Rs 4.75 crore increase exceeded the Rs 2.68 crore rise in operating revenue, while finance costs were Rs 29.07 lakh and depreciation and amortisation expense was Rs 20.27 lakh in the September 2026 half year.

The comparison indicates that other expenses declined by Rs 1.35 crore, but this did not offset the rise in employee costs. Infonative identifies its single primary business segment as developing and designing e-learning content, so it does not provide operating results for separate product lines.

How did Infonative's domestic and export revenue change?

Infonative's domestic revenue increased to Rs 12.13 crore for the half year ended September 30, 2026 from Rs 8.22 crore a year earlier, while export revenue declined to Rs 2.63 crore from Rs 3.85 crore. Domestic revenue therefore supplied more than the overall Rs 2.68 crore increase in revenue from operations.

Domestic sales rose by Rs 3.91 crore, whereas export sales fell by Rs 1.23 crore between the two half-year periods. Infonative said customer geography is its secondary segment because it exports services, but it cannot realistically allocate or identify segment results, assets or liabilities by customer location.

Domestic customers represented about 82.2% of Infonative's reported operating revenue in the September 2026 half year, compared with about 68.1% in the corresponding prior-year period. The disclosed geographic figures show that the company’s sales mix moved further towards domestic customers while export revenue contracted.

What did Infonative's cash flow show in the September 2026 half year?

Infonative generated Rs 1.67 crore of net cash from operating activities in the half year ended September 30, 2026, compared with a net operating cash outflow of Rs 91.37 lakh in the corresponding 2025 period. Cash generated in operations was Rs 2.59 crore, against an outflow of Rs 4.04 lakh a year earlier.

The operating cash-flow reconciliation began with profit before tax of Rs 1.44 crore and included Rs 20.27 lakh of depreciation and amortisation, Rs 28.89 lakh of interest expense and Rs 75.44 lakh of interest income on fixed deposits. Working-capital movements included Rs 71.20 lakh relating to trade receivables and Rs 31.24 lakh in other current liabilities.

Investing activities used Rs 3.15 crore in the September 2026 half year, lower than the Rs 19.13 crore used in the corresponding prior-year period. The current-period outflow included Rs 1.68 crore invested in a subsidiary, Rs 76.75 lakh invested in fixed deposits, Rs 52.62 lakh of capital expenditure and a Rs 17.39 lakh loan given to the subsidiary.

Financing activities generated Rs 1.24 crore, compared with Rs 20.06 crore in the September 2025 half year, when the cash-flow statement recorded Rs 20.15 crore in proceeds from issue of shares. Cash and cash equivalents were Rs 3.13 lakh at September 30, 2026, comprising Rs 1.69 lakh in cash on hand and Rs 1.44 lakh with banks.

What did the review and new subsidiary disclosure cover?

Infonative's audit committee reviewed and recommended the unaudited standalone results, and the board approved them on November 14, 2026. The statement was prepared under Accounting Standard 25, Interim Financial Reporting, with earnings per share calculated for six months and not annualised.

Kailash Chand Jain & Co. reviewed the standalone results for the period ended September 30, 2026. The auditor said nothing had come to its attention to indicate that the statement lacked required disclosures or contained a material misstatement, while noting that a review has a narrower scope than an audit and does not provide an audit opinion.

Infonative also filed its first consolidated results after Digital Benchers Private Limited became a subsidiary on August 11, 2026. The subsidiary's results from August 12, 2026 to September 30, 2026 included revenue of Rs 12.94 lakh, profit after tax of Rs 2.89 lakh and net cash outflow of Rs 13.50 lakh, with no prior-year consolidated comparison presented.

The filing states that no investor complaints were pending as of September 30, 2026. Infonative is listed on the BSE Emerge small and medium enterprises platform, and the company said its financial results are available on its website and the BSE website.

Conclusion

Infonative's September 2026 half-year result shows that the Rs 2.68 crore increase in operating revenue did not translate into higher pre-tax profit because employee-benefit expense rose by Rs 4.75 crore year on year. The revenue increase was driven by a Rs 3.91 crore gain in domestic sales, while export revenue declined by Rs 1.23 crore.

The next reported period will show whether employee-benefit expense remains near Rs 11.42 crore and whether export revenue recovers from Rs 2.63 crore. Investors can also track the financial effect of Digital Benchers Private Limited, which became Infonative's subsidiary on August 11, 2026, and the Rs 1.68 crore investment and Rs 17.39 lakh loan disclosed in the cash-flow statement.