Lee & Nee Softwares half-year profit rises to Rs 28.50 lakh

Lee & Nee Softwares (Exports) Limited reported consolidated net profit of Rs 28.50 lakh for the half year ended September 30, 2026, up from Rs 11.64 lakh a year earlier, as revenue from operations increased 49.23% to Rs 7.60 crore. Net cash from operating activities turned positive at Rs 35.55 lakh from an outflow of Rs 85.06 lakh.

How did Lee & Nee Softwares perform in the half year?

Lee & Nee Softwares increased consolidated revenue from operations to Rs 7.60 crore in the half year ended September 30, 2026, from Rs 5.09 crore in the corresponding 2025 period. The Rs 2.51 crore increase lifted operating revenue by 49.23%. Including other income of Rs 64.16 lakh, total income rose to Rs 8.24 crore from Rs 5.69 crore.

Profit before tax increased to Rs 39.45 lakh from Rs 21.29 lakh, while net profit rose by Rs 16.86 lakh to Rs 28.50 lakh. Tax expense was Rs 10.95 lakh, compared with Rs 9.65 lakh in the previous first half. Basic and diluted earnings per share, which the company said were not annualised, were Rs 0.05, compared with Rs 0.02 a year earlier.

What drove Lee & Nee Softwares’ income increase?

Lee & Nee Softwares recorded Rs 7.60 crore of operating revenue in the first half, while other income increased to Rs 64.16 lakh from Rs 59.95 lakh. As a result, total income rose by Rs 2.55 crore, or 44.79%, from Rs 5.69 crore. The filing does not identify customers, contracts, pricing changes or volumes behind the revenue movement.

Lee & Nee Softwares states that the group primarily operates in a single business segment, IT Enabled Services. It therefore says the segment-reporting disclosure requirement is not applicable. The group comprised the parent company and two subsidiaries at September 30, 2026: Lensel Web Services Private Limited and Rituraj Shares Broking Private Limited.

The rise in profit exceeded the percentage increase in total income: profit before tax rose 85.30% to Rs 39.45 lakh and net profit rose 144.85% to Rs 28.50 lakh. Total comprehensive income was Rs 64.78 lakh, compared with Rs 45.89 lakh a year earlier, reflecting Rs 36.28 lakh of other comprehensive income in the 2026 half year.

How much did Lee & Nee Softwares’ expenses increase?

Lee & Nee Softwares’ consolidated expenses rose to Rs 7.84 crore from Rs 5.48 crore in the half year ended September 30, 2026. The 43.21% increase was below the 44.79% rise in total income, resulting in profit before tax of Rs 39.45 lakh, compared with Rs 21.29 lakh in the corresponding period. The results reported no exceptional items in either half-year comparison.

Cost of services increased to Rs 1.20 crore from Rs 75.80 lakh, employee benefits expense rose to Rs 3.15 crore from Rs 2.77 crore, and other expenses increased to Rs 3.43 crore from Rs 1.86 crore. Depreciation and amortisation declined to Rs 6.30 lakh from Rs 7.77 lakh. Finance cost was Rs 36,000, compared with Rs 34,000 a year earlier.

Other expenses accounted for the largest absolute increase among the stated cost lines, rising by Rs 1.56 crore. Cost of services increased by Rs 44.50 lakh and employee benefits expense by Rs 37.36 lakh. The filing does not provide a further breakdown or explanation for these expense movements.

Did Lee & Nee Softwares generate operating cash flow?

Lee & Nee Softwares generated Rs 35.55 lakh of net cash from operating activities in the six months to September 30, 2026, reversing net cash used in operating activities of Rs 85.06 lakh in the comparable 2025 period. The reversal occurred despite operating profit before working-capital changes being a loss of Rs 9.11 lakh, compared with a profit of Rs 24.27 lakh a year earlier.

Working-capital movements generated Rs 63.20 lakh of cash in the 2026 half year, against cash used of Rs 84.09 lakh in the prior-year period. The cash-flow statement records a Rs 48.16 lakh decrease in trade receivables and a Rs 41.53 lakh increase in trade and other payables. These were partly offset by a Rs 58.74 lakh increase in other current assets.

Investing activities used Rs 39.25 lakh, compared with Rs 52.15 lakh generated in the previous first half, and financing activities used Rs 3.77 lakh. Cash and cash equivalents fell to Rs 45.05 lakh at September 30, 2026 from Rs 52.52 lakh at the beginning of the financial year. The cash-flow statement was prepared under the indirect method prescribed by Indian Accounting Standard 7, Statement of Cash Flows.

What changed in Lee & Nee Softwares’ financial position?

Lee & Nee Softwares reported total consolidated assets of Rs 60.66 crore at September 30, 2026, compared with Rs 59.39 crore at March 31, 2026. Total equity increased to Rs 57.86 crore from Rs 57.21 crore, including other equity of Rs 2.09 crore versus Rs 1.44 crore. Equity share capital was unchanged at Rs 55.77 crore.

Current assets increased to Rs 13.50 crore from Rs 12.05 crore. Current investments rose to Rs 2.98 crore from Rs 1.58 crore, while current trade receivables declined to Rs 90.09 lakh from Rs 1.34 crore. The receivables decline is consistent with the Rs 48.16 lakh reduction reported in the cash-flow statement.

Total current liabilities rose to Rs 2.56 crore from Rs 1.95 crore. Trade payables to creditors other than micro and small enterprises increased to Rs 85.17 lakh from Rs 58.73 lakh, while dues to micro and small enterprises rose to Rs 31.80 lakh from Rs 16.70 lakh. Non-current borrowings declined to Rs 3.01 lakh from Rs 4.73 lakh and current borrowings fell to Rs 4.31 lakh from Rs 6 lakh.

Conclusion

Lee & Nee Softwares’ first-half results combined higher IT Enabled Services revenue with a larger consolidated profit and a reversal to positive operating cash flow. Revenue increased by Rs 2.51 crore to Rs 7.60 crore, while expenses rose by Rs 2.37 crore to Rs 7.84 crore, leaving net profit at Rs 28.50 lakh and total comprehensive income at Rs 64.78 lakh.

The next reported results will show whether revenue growth and working-capital cash generation continue after September 2026. Management also disclosed that lease rent relating to the quarter ended June 30, 2026 was inadvertently not recorded until the current quarter, though it assessed the omission as not material and said it had no impact on the half-year results. The auditor further noted that interim information of the two subsidiaries was not subject to auditor review, although management considered it not material to the group.