Innovision Q2 PBT rises Rs 23.763 crore on fee timing change

Innovision Limited reported Rs 2.54 lakh of profit before tax for the quarter ended September 30, 2026, after a revised National Highways Authority of India toll-fee estimate increased profit before tax by Rs 23.763 crore. Effective July 1, 2026, the prospective change shifts expense timing but leaves the total contractual fee unchanged.

How did the toll-fee estimate affect Innovision's Q2 profit?

Innovision said the revised estimate lowered toll-fee expense by Rs 23.763 crore and increased profit before tax by the same amount in the quarter ended September 30, 2026. Reported profit before tax was Rs 2.54 lakh, indicating a calculated pre-change loss before tax of Rs 23.509 crore for the quarter.

The same Rs 23.763 crore effect was reported for the six months ended September 30, 2026 because the new approach began on July 1, 2026. Innovision reported a first-half loss before tax of Rs 6.252 crore, compared with profit before tax of Rs 23.573 crore in the six months ended September 30, 2025; excluding the stated estimate effect, the calculated first-half loss would have been Rs 30.015 crore.

The disclosed adjustment concerns profit before tax, rather than the full movement in profit after tax. Innovision recorded a tax credit of Rs 8.99 crore in the September 2026 quarter and reported profit after tax of Rs 5.148 crore, compared with a loss after tax of Rs 7.355 crore in the June 2026 quarter.

Why did Innovision revise its NHAI toll-fee recognition method?

Innovision changed from straight-line recognition of NHAI fees over the contract period to a method based on estimated monthly vehicular traffic relative to total estimated traffic for the contract period. The company said historical traffic data from the previous year supports the monthly estimates used from July 1, 2026.

Management said traffic-linked recognition better reflects consumption of the right to collect toll because vehicle movement on toll roads experiences seasonal and periodic variation. The total contractual fee payable to NHAI has not changed, meaning the Rs 23.763 crore reduction in September-quarter expense is a timing effect rather than a reduction in the obligation.

The company treated the revision as a change in accounting estimate under Indian Accounting Standard 8, or Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. It applied the revised basis prospectively from July 1, 2026, did not restate comparative periods, and said it was impracticable to quantify the impact on future periods.

Consequently, reported results for the quarter ended September 30, 2026 are not directly comparable with periods before July 2026 without considering the new toll-fee timing. The June 2026 and September 2025 quarters retain the earlier straight-line recognition method, while future expense will depend on estimated traffic under the revised approach.

What did Innovision report for the September 2026 quarter?

Innovision reported revenue from operations of Rs 356.675 crore for the quarter ended September 30, 2026, compared with Rs 263.815 crore in the quarter ended June 30, 2026 and Rs 256.970 crore a year earlier. Revenue therefore increased by Rs 92.860 crore sequentially and by Rs 99.705 crore from the September 2025 quarter.

Total income was Rs 359.444 crore in the September 2026 quarter, including other income of Rs 2.769 crore, while total expenses were Rs 355.190 crore. Innovision reported profit before tax of Rs 2.54 lakh, compared with a loss before tax of Rs 10.506 crore in the preceding quarter and profit before tax of Rs 9.75 crore in the September 2025 quarter.

The movement from the June-quarter loss to a small September-quarter profit occurred alongside the Rs 23.763 crore reduction in toll-fee expense from the revised estimate. The reported September-quarter profit before tax nevertheless remained below the Rs 9.75 crore reported a year earlier, when the earlier straight-line accounting basis applied.

Innovision identifies Security, Toll, and Skill Training and Development as its reportable segments under Indian Accounting Standard 108, or Ind AS 108, Operating Segments. The company’s filing describes toll operations as toll collection, lane management, incident response and operational management of highway toll plazas, primarily for infrastructure authorities.

What other disclosures affect interpretation of Innovision's results?

Innovision said the Directorate of Enforcement conducted searches at its corporate office and at Managing Director Randeep Hundal’s residence on September 2, 2026, under the Prevention of Money Laundering Act, 2002. On September 9, 2026, the Directorate issued summons to Hundal and Chief Financial Officer Bijender to appear and furnish information or record statements in connection with the investigation.

As of the Board’s approval of the financial results on November 13, 2026, Innovision said it had received no show-cause notice, attachment order or prosecution complaint. The investigation remained ongoing, management said it could not determine the outcome or estimate the financial impact, and no adjustment was made to the September 2026 financial results.

Cash and cash equivalents stood at Rs 16.099 crore at September 30, 2026, down from Rs 50.663 crore at March 31, 2026. Net cash used in operating activities was Rs 89.242 crore for the six months ended September 30, 2026, compared with Rs 16.342 crore used in the corresponding prior-year period.

The company reported net cash from investing activities of Rs 55.203 crore for the six-month period, including Rs 52.168 crore from net maturity or investment in fixed deposits. Separately, Rs 60.018 crore of initial public offering proceeds remained unutilised at September 30, 2026, with Rs 20.355 crore linked to working capital and Rs 39.663 crore allocated to general corporate purposes.

Conclusion

Innovision’s September 2026 quarter moved to a reported profit before tax of Rs 2.54 lakh only after a Rs 23.763 crore decrease in toll-fee expense resulting from a prospective change in the timing of NHAI fee recognition. Revenue increased to Rs 356.675 crore from Rs 263.815 crore in the June 2026 quarter, but the accounting change means the reported profit comparison with earlier periods needs to be read with that timing effect in mind.

The next reporting periods will show how traffic-based fee recognition redistributes toll expense, as Innovision has not quantified the future-period effect of the estimate change. Investors will also watch the unresolved Directorate of Enforcement investigation, for which Innovision reported no show-cause notice, attachment order, prosecution complaint or financial-statement adjustment as of November 13, 2026.