Mudunuru returns to Rs 5.18 lakh September profit

Mudunuru Limited reported a Rs 5.18 lakh net profit for the quarter ended September 30, 2026, after revenue from operations rose to Rs 1.42 crore from Rs 36.06 lakh a year earlier. Mudunuru nevertheless recorded a Rs 77.16 lakh loss for the six months and held Rs 3.33 lakh of cash at period-end.

How did Mudunuru return to profit in September 2026?

Mudunuru returned to profit in the September 2026 quarter because revenue from operations increased to Rs 1.42 crore while total expenses were Rs 1.38 crore. Revenue was Rs 44.90 lakh in the preceding June 2026 quarter and Rs 36.06 lakh in the September 2025 quarter, compared with Rs 1.42 crore in the latest quarter.

Total income was Rs 1.42 crore for the quarter ended September 30, 2026, against Rs 47.61 lakh in June 2026 and Rs 37.32 lakh a year earlier. The September quarter included no other income, whereas other income was Rs 2.71 lakh in June 2026 and Rs 1.26 lakh in September 2025. The increase in total income therefore reflected revenue from operations rather than other income.

Total expenses rose to Rs 1.38 crore from Rs 1.31 crore in June 2026 and Rs 1.20 crore in September 2025. Employee-benefit expense was Rs 83.24 lakh, compared with Rs 78.94 lakh sequentially and Rs 59.46 lakh a year earlier. Depreciation and amortisation amounted to Rs 18.11 lakh, finance cost was Rs 0.72 lakh and other expenses were Rs 36.10 lakh.

Profit before tax was Rs 4.15 lakh, reversing pre-tax losses of Rs 83.22 lakh in June 2026 and Rs 82.63 lakh in September 2025. A deferred-tax credit of Rs 1.03 lakh resulted in a Rs 5.18 lakh net profit. Basic and diluted earnings per share were Rs 0.02, compared with losses per share of Rs 0.25 in each of the two comparison quarters.

Why did Mudunuru report a first-half loss despite September profit?

Mudunuru reported a Rs 77.16 lakh net loss for the six months ended September 30, 2026 because the September-quarter profit did not offset the Rs 82.34 lakh loss recorded in the June 2026 quarter. The first-half loss was lower than the Rs 1.51 crore loss reported for the six months ended September 30, 2025.

Revenue from operations for the six-month period rose to Rs 1.87 crore from Rs 89.42 lakh a year earlier. Total income increased to Rs 1.90 crore from Rs 92.59 lakh, but total expenses also rose to Rs 2.69 crore from Rs 2.46 crore. The resulting pre-tax loss narrowed to Rs 79.07 lakh from Rs 1.54 crore in the prior-year period.

Employee-benefit expense increased to Rs 1.62 crore from Rs 1.19 crore in the prior-year first half. Other expenses decreased to Rs 70.02 lakh from Rs 77.43 lakh, depreciation and amortisation declined to Rs 35.44 lakh from Rs 42.60 lakh, and finance cost fell to Rs 1.37 lakh from Rs 7.10 lakh.

Mudunuru reported no exceptional items, discontinued operations or other comprehensive income for the six months ended September 30, 2026. The company said it operates in IT consulting, software services and dairy supply, but did not prepare separate segment reporting under Indian Accounting Standard 108, Operating Segments. The filing therefore does not show which activity generated the September-quarter revenue.

What happened to Mudunuru's cash and working capital?

Mudunuru's cash and cash equivalents fell to Rs 3.33 lakh at September 30, 2026 from Rs 72.51 lakh at March 31, 2026. The cash-flow statement shows a net decrease of Rs 69.18 lakh during the six-month period, after operating, investing and financing cash flows.

Net cash used in operating activities was Rs 1.04 crore for the six months ended September 30, 2026, while investing activities used Rs 16.37 lakh. The operating cash movement included a Rs 34.69 lakh increase in trade receivables, a Rs 5.56 lakh increase in other current assets and a Rs 21.97 lakh decrease in other current liabilities.

Trade receivables on the balance sheet increased to Rs 1.66 crore at September 30 from Rs 1.32 crore at March 31. Other current assets rose to Rs 20.55 lakh from Rs 14.99 lakh, while inventories were unchanged at Rs 18.50 lakh. These balance-sheet movements correspond with the working-capital outflows disclosed in the cash-flow statement.

Financing activities generated Rs 51.41 lakh of cash in the six-month period, comprising a Rs 52.78 lakh increase in borrowings less Rs 1.37 lakh of interest paid. Non-current borrowings stood at Rs 4.20 crore at September 30, compared with Rs 3.68 crore at March 31. Total assets decreased to Rs 4.75 crore from Rs 5.23 crore, while other equity moved to negative Rs 6.95 crore from negative Rs 6.18 crore.

What funding and expansion actions has Mudunuru disclosed?

Mudunuru has proposed a preferential allotment of up to 33.70 lakh equity shares at Rs 2 per share to one non-promoter investor, Dheeksha Buddharaju. The disclosed issue size is Rs 67.40 lakh if all shares are issued. The filing states that promoters would hold 55.42% and the public 44.58% after allotment, assuming all proposed convertible warrants are subscribed and converted into equity shares.

Mudunuru also proposes to acquire 51% of Mudunuru Hospitality Private Limited for Rs 5.10 lakh in cash. The target company was incorporated on November 4, 2026, and Mudunuru disclosed an indicative completion date before December 31, 2026. It said the proposed investment forms part of a plan to diversify operations, enhance operational capabilities and explore growth opportunities in other sectors.

The audit committee reviewed the results and the board took them on record on November 12, 2026. The independent auditor issued a limited review report dated November 12, 2026, saying nothing had come to its attention that caused it to believe the unaudited results failed to make required disclosures or contained a material misstatement. The auditor also stated that a review provides less assurance than an audit and did not express an audit opinion.

Conclusion

Mudunuru's Rs 5.18 lakh September-quarter profit followed losses in both the June 2026 and September 2025 quarters, with revenue from operations reaching Rs 1.42 crore. The six-month result remained a Rs 77.16 lakh loss, however, and cash declined by Rs 69.18 lakh to Rs 3.33 lakh as operating and investing outflows exceeded financing inflows.

The next disclosed items to watch are the proposed preferential allotment of 33.70 lakh shares at Rs 2 each and the planned Rs 5.10 lakh cash acquisition of a 51% stake in Mudunuru Hospitality Private Limited before December 31, 2026. Subsequent disclosures may also show whether the September 2026 revenue level continues and how receivables, cash and borrowings change.