Nihar Info Global Q1 FY2025-26: Revenue rises, profit softens as costs move

Nihar Info Global Limited reported its first quarter FY2025-26 results for the period ended June 30, 2026, alongside limited review reports from its statutory auditors. The quarter tells a familiar small-cap story: reported scale improved meaningfully, but profitability stayed thin as operating costs and mix effects kept margins under pressure.

On a consolidated basis, revenue from operations rose to Rs 471.77 lakhs in Q1 FY2025-26, up from Rs 331.41 lakhs in Q1 FY2024-25. Yet profit after tax declined to Rs 2.11 lakhs versus Rs 6.07 lakhs a year earlier. Profit before tax also fell to Rs 2.14 lakhs from Rs 6.25 lakhs. The quarter therefore reflects growth without translation into earnings strength.

Standalone numbers showed a similar pattern but with lower scale. Standalone revenue from operations increased to Rs 351.31 lakhs from Rs 208.22 lakhs in the year-ago quarter. Standalone profit after tax came in at Rs 0.49 lakhs, down from Rs 5.69 lakhs in Q1 FY2024-25.

The auditors issued limited review reports for both standalone and consolidated results. For the consolidated review, the auditor noted that the financial information of two subsidiaries was not reviewed by them and was furnished by management. The conclusion was not modified on this basis.

The topline story: scale improved, but earnings stayed tight

The consolidated topline grew sharply year on year. Revenue from operations rose by about Rs 140.36 lakhs in Q1 FY2025-26 compared with Q1 FY2024-25. In the company’s segment disclosure, consolidated revenue includes E-Commerce and Software Services, with a separate line for iTrading Activity.

The profitability line moved the other way. Consolidated profit before tax was Rs 2.14 lakhs in Q1 FY2025-26, down from Rs 6.25 lakhs in Q1 FY2024-25. PAT was Rs 2.11 lakhs compared with Rs 6.07 lakhs last year. Basic EPS on consolidated results was Rs 0.02 versus Rs 0.06 in the year-ago quarter.

Costs appear to have been the swing factor, though the consolidated statement includes several anomalies and inconsistencies in presentation. It still conveys the broad direction: operating expenses and inventory changes were significant in the quarter, and finance cost and depreciation were higher than some past periods. Finance cost on consolidated results was Rs 4.33 lakhs (Q1 FY2024-25: Rs 3.58 lakhs) and depreciation and amortization was Rs 6.43 lakhs (Q1 FY2024-25: Rs 4.17 lakhs).

Standalone performance also improved on revenue but softened on profitability. Standalone profit before tax was Rs 0.52 lakhs in Q1 FY2025-26 versus Rs 8.58 lakhs in Q1 FY2024-25. Standalone PAT stood at Rs 0.49 lakhs.

Financial snapshot

Note: All figures are as presented in the company’s unaudited results for the quarter ended June 30, 2026.

Segment mix: Software Services dominates, E-Commerce adds a small layer

The segment data helps explain where the growth is coming from, especially in the consolidated view.

For Q1 FY2025-26, consolidated segment revenue was led by Software Services at Rs 427.71 lakhs. E-Commerce contributed Rs 44.06 lakhs. The disclosure also lists iTrading Activity at Rs 471.77 lakhs, and the total revenue line also shows Rs 471.77 lakhs, indicating the table formatting has overlaps that make the mix hard to reconcile cleanly. Even so, the Software Services figure is the clearest indicator of the scale driver in the consolidated results for the quarter.

On the profitability side, consolidated segment results were modest across segments. E-Commerce segment result was Rs 0.20 lakhs and Software Services segment result was Rs 1.94 lakhs for the quarter. The iTrading Activity line shows Rs 2.14 lakhs as segment result, which matches the consolidated profit before tax line. This suggests that overall profitability remains small relative to revenue, and any volatility in costs, inventory changes, or finance costs can quickly compress earnings.

Standalone segment reporting reflects a different mix and includes a Trading Activity segment. For Q1 FY2025-26, standalone segment revenue includes E-Commerce at Rs 32.81 lakhs, Software Services at Rs 18.49 lakhs, and Trading Activity at Rs 0.47 lakhs. The standalone statement also shows the full revenue from operations of Rs 351.31 lakhs, but the segment table layout appears to have duplication in the unallocated line. Despite that, the disclosed segment lines point to E-Commerce as the most visible contributor among the specific standalone segments listed.

Segment comparison for Q1 FY2025-26

Note: Segment disclosures are reproduced as presented in the company’s statements and may include overlaps in the consolidated segment table.

What the cost lines suggest about execution quality

The quarter’s most important investor takeaway is not the revenue growth itself, but the company’s ability to retain value from that growth. Consolidated profit before tax at Rs 2.14 lakhs on revenue from operations of Rs 471.77 lakhs implies a very low margin profile for the quarter.

Standalone results are even more telling about operating leverage. Standalone revenue grew strongly year on year, but standalone profit before tax fell sharply to Rs 0.52 lakhs. Expense items show large movements in cost of operations and changes in inventories. In Q1 FY2025-26, standalone cost of operations was Rs 304.98 lakhs and changes in inventories was negative at Rs (53.36) lakhs. These lines can swing quarter to quarter and can shift the reported margin picture.

In the consolidated statement, finance cost and depreciation together were about Rs 10.76 lakhs in Q1 FY2025-26. When the base profit level is small, fixed costs like finance and depreciation can dominate the earnings profile. That creates a narrow band of profitability. It also means the business needs either better gross margins, tighter operating costs, or a mix shift toward higher contribution segments to produce a stronger earnings run-rate.

Another subtle point is that consolidated earnings are meaningfully higher than standalone earnings in the quarter. Consolidated PAT was Rs 2.11 lakhs versus standalone PAT of Rs 0.49 lakhs. Investors should interpret this as the group structure contributing incremental profits beyond the parent company, though the detailed subsidiary performance is not separately disclosed in the presented pages.

Subsidiaries and reporting quality: what the auditor notes matter

The consolidated review report lists two subsidiaries included in the group results: Life 108 Healthcare Private Limited and Beastbells Media Private Limited. The auditor states that they did not review the financial information of these subsidiaries, and that the interim financial information was approved and furnished by management. The audit conclusion was not modified.

This kind of disclosure is common in limited reviews, but it should still shape investor expectations. When quarterly results depend partly on management-furnished subsidiary information, investors typically watch for consistency over multiple quarters and for any later adjustments in audited annual results.

Separate from the audit note, the financial statements as presented include several formatting and internal inconsistencies, especially within the consolidated income statement where the lines for other income and total income do not align cleanly with revenue from operations. The segment tables also show overlaps between segment lines and totals. These issues do not change the direction of the reported quarter, but they do make detailed ratio analysis less reliable from the excerpt alone.

For an investor, that raises a practical point: the quarter indicates business activity expansion, but the reporting quality needs to be strong enough to support confidence in trend tracking. Clean segment totals, consistent income lines, and clear reconciliations between segment revenue and consolidated revenue matter, particularly when margins are thin and small changes can alter earnings.

Capital employed: stable base, low return in the quarter

The consolidated segment disclosure includes a capital employed figure expressed as segment assets minus segment liabilities. The total capital employed for Q1 FY2025-26 is shown at Rs 635.51 lakhs, compared with Rs 604.74 lakhs in Q1 FY2024-25.

Within that, E-Commerce capital employed is shown at Rs 576.15 lakhs in Q1 FY2025-26, while Software Services is shown at Rs 59.36 lakhs. This suggests that a large portion of deployed capital sits in the E-Commerce segment, at least as per the disclosure. Yet segment results in E-Commerce are small at Rs 0.20 lakhs for the quarter. That gap between capital deployment and profit contribution is an area investors may track.

On the standalone side, total capital employed is shown at Rs 624.43 lakhs for Q1 FY2025-26. The segment split shows E-Commerce at Rs 58.32 lakhs and Software Services at Rs 56.11 lakhs, with an unallocated line at Rs 624.43 lakhs. Again, the layout appears to have overlap, but the headline point is that the company has a meaningful capital base relative to quarterly profits.

Low quarterly profitability against this capital employed base is not necessarily permanent. But it does make the next few quarters important. Investors typically look for either margin improvement, more stable cost behavior, or clearer scaling economics.

The quarter’s theme: growth is visible, but the quality of growth is the question

For Q1 FY2025-26, Nihar Info Global delivered a clear increase in revenue on both standalone and consolidated bases. Consolidated revenue from operations grew from Rs 331.41 lakhs to Rs 471.77 lakhs year on year. Standalone revenue rose from Rs 208.22 lakhs to Rs 351.31 lakhs. That is the strongest signal in the release.

But profit contracted. Consolidated PAT declined to Rs 2.11 lakhs and standalone PAT fell to Rs 0.49 lakhs. With thin earnings, the business does not yet show a wide buffer against quarterly cost shifts.

The segment information suggests that Software Services is central to consolidated scale in the quarter, while E-Commerce remains a smaller revenue contributor but appears to carry a large portion of capital employed in the consolidated disclosure. That combination can work if execution improves and returns strengthen. But the quarter’s numbers show that the current outcome is still small profits.

The immediate takeaway for investors is straightforward. The company has demonstrated it can grow revenue, but it still needs to prove it can convert that growth into durable earnings. The next quarter’s margin trajectory and the consistency of segment reporting will matter as much as the topline.