Innovative Tech Pack returns to profit in September quarter

Innovative Tech Pack Limited reported a Rs 68.95 lakh standalone profit for the quarter ended September 30, 2026, after losses in the prior and year-earlier quarters. Innovative Tech Pack’s half-year result nevertheless was a Rs 9.42 lakh loss, as the Rs 78.37 lakh June-quarter loss exceeded the September recovery.

How did Innovative Tech Pack perform in the September 2026 quarter?

Innovative Tech Pack returned to profit in the quarter ended September 30, 2026, reporting profit before and after tax of Rs 68.95 lakh. This compared with a Rs 78.37 lakh loss in the quarter ended June 30, 2026 and a Rs 1.10 crore loss in the quarter ended September 30, 2025. The statement recorded no current, deferred or earlier-year tax expense in these periods.

Total income was Rs 30.62 crore in the September quarter, down from Rs 36.06 crore in June but up from Rs 28.95 crore a year earlier. Revenue from operations was Rs 29.96 crore, compared with Rs 35.95 crore in June and Rs 28.87 crore in the September 2025 quarter. Other income rose to Rs 66.30 lakh from Rs 11.21 lakh sequentially and Rs 7.33 lakh year on year.

Total expenses fell to Rs 29.93 crore from Rs 36.84 crore in June, allowing income to exceed costs by Rs 68.95 lakh. Cost of materials consumed declined to Rs 16.09 crore from Rs 27.35 crore, while finance cost decreased to Rs 57.44 lakh from Rs 90.93 lakh. Basic and diluted earnings per share were Rs 0.31, against negative Rs 0.35 in June and negative Rs 0.50 a year earlier.

The quarter included an Rs 3.14 crore expense from changes in inventories of finished goods, work in progress and stock-in-trade. In the June quarter, the same line was a Rs 2.18 crore reduction in expense. This movement occurred alongside the sequential decline in revenue from operations from Rs 35.95 crore to Rs 29.96 crore.

Why did Innovative Tech Pack make a first-half loss despite income growth?

Innovative Tech Pack made a Rs 9.42 lakh loss in the half year ended September 30, 2026, compared with a Rs 21.70 lakh profit in the corresponding 2025 half year. Total income rose to Rs 66.68 crore from Rs 61.64 crore, including revenue from operations of Rs 65.90 crore versus Rs 61.46 crore a year earlier.

Total expenses were Rs 66.77 crore in the 2026 half year, exceeding total income of Rs 66.68 crore by Rs 9.42 lakh. In the prior-year half, expenses of Rs 61.43 crore were below total income of Rs 61.64 crore. The result combines the Rs 78.37 lakh June-quarter loss and the Rs 68.95 lakh September-quarter profit.

Several costs declined year on year in the half year. Finance cost was Rs 1.48 crore against Rs 1.55 crore, employee benefits expense was Rs 3.78 crore against Rs 4.41 crore, and depreciation and amortisation was Rs 2.22 crore against Rs 2.56 crore. However, the inventory-change line was an expense of Rs 95.66 lakh, compared with a Rs 1.51 crore reduction in expense in the prior-year period.

What changed in Innovative Tech Pack’s balance sheet and cash flow?

Innovative Tech Pack’s total assets were Rs 83.19 crore at September 30, 2026, down from Rs 86.42 crore at March 31, 2026. Property, plant and equipment fell to Rs 33.23 crore from Rs 35.20 crore, while billed trade receivables declined to Rs 20.23 crore from Rs 22.47 crore. Total equity decreased to Rs 37.40 crore from Rs 37.49 crore.

Inventory increased to Rs 21.58 crore at September 30 from Rs 20.38 crore at the March year-end. Cash and cash equivalents were Rs 23.01 lakh, compared with Rs 19.82 lakh, while other bank balances were unchanged at Rs 3.03 crore. The balance-sheet movement in inventory is consistent with the Rs 95.66 lakh inventory-change expense reported for the half year.

Non-current borrowings declined to Rs 10.01 crore at September 30 from Rs 13.45 crore at March 31, while current borrowings increased to Rs 6.70 crore from Rs 6.43 crore. Trade payables other than dues to micro and small enterprises rose to Rs 25.93 crore from Rs 25.52 crore. Total current liabilities increased to Rs 35.65 crore from Rs 35.31 crore.

The cash-flow statement reported Rs 4.16 crore of net cash generated from operating activities for the half year ended September 30, 2026. A Rs 2.24 crore decrease in trade receivables was partly offset by a Rs 1.20 crore increase in inventories. Net cash from investing activities was Rs 52.04 lakh, while Rs 4.65 crore was used in financing activities, resulting in a Rs 3.19 lakh increase in cash and cash equivalents.

What review notes did Innovative Tech Pack disclose?

Innovative Tech Pack said workers requested wages totalling Rs 15.42 lakh in cash during the half year ended September 30, 2026. The company said individual payments to contract workers were above limits specified in laws governing provident fund and employee state insurance, and that relevant due-control processes had been exercised. The reviewer drew attention to the cash payments instead of banking channels.

The company disclosed that Rs 27.66 lakh of bonus relating to prior financial years remained unpaid at September 30, 2026. It said the exact employee-wise and financial-year-wise break-up was unavailable. It also reported unpaid dividends in its books of Rs 12.08 lakh, for which shareholder-wise and amount-wise records were unavailable for verification.

Innovative Tech Pack said balances of trade receivables, advances, unsecured loans, security deposits and trade payables were subject to confirmation. It also said no internal audit had been conducted during the half year, although management said it had an internal audit team and no report was available in the records. The reviewer additionally highlighted the disclosed non-payment of interest on overdue micro, small and medium enterprise creditor amounts, while stating that its report was not qualified on these matters.

Conclusion

Innovative Tech Pack’s Rs 68.95 lakh September-quarter profit reversed losses in both the preceding and year-earlier quarters, aided by lower total expenses and lower finance cost. The half-year result remained a Rs 9.42 lakh loss because the June-quarter loss was larger than the September recovery, despite revenue from operations increasing to Rs 65.90 crore.

The next reported result will show whether Innovative Tech Pack can sustain profitability after September-quarter revenue of Rs 29.96 crore was below June’s Rs 35.95 crore. The company’s disclosed unresolved matters include the Rs 27.66 lakh unpaid prior-year bonus, the absence of an internal audit during the half year, wage payments in cash, overdue MSME-related interest and account balances subject to confirmation.