Palred Q2 profit falls 4% as operating revenue stays flat

Palred Technologies Limited (Palred) reported standalone profit after tax of Rs 73.70 lakh for the quarter ended September 30, 2026, down 3.9% from Rs 76.69 lakh a year earlier, while revenue from operations remained Rs 37.50 lakh. Other income of Rs 1.03 crore exceeded operating revenue and took total income to Rs 1.41 crore.

What were Palred's standalone Q2 2026 results?

Palred's standalone profit after tax was Rs 73.70 lakh in the quarter ended September 30, 2026, versus Rs 76.69 lakh in the quarter ended September 30, 2025 and Rs 62.97 lakh in the June 2026 quarter. The year-on-year decline was Rs 2.99 lakh, while profit increased Rs 10.73 lakh sequentially from the preceding quarter.

Palred reported basic and diluted earnings per share of Rs 0.59 for the September 2026 quarter, compared with Rs 0.62 in the year-earlier quarter and Rs 0.51 in the June 2026 quarter. The company stated that basic and diluted earnings per share for the quarter and period had not been annualised.

Why did Palred's total income exceed operating revenue?

Palred recorded Rs 1.03 crore of other income in the September 2026 quarter, compared with Rs 37.50 lakh of revenue from operations. Total income was therefore Rs 1.41 crore, with other income contributing more than operating revenue. The company did not provide a quarterly component-wise split of other income in the standalone income statement.

Other income rose from Rs 90.72 lakh in the June 2026 quarter and Rs 1.01 crore in the September 2025 quarter, even as operating revenue was unchanged at Rs 37.50 lakh across all three quarters. This meant total income increased sequentially by Rs 12.30 lakh to Rs 1.41 crore, while the year-on-year increase was Rs 1.55 lakh.

The half-year cash-flow statement identifies Rs 1.85 crore of interest income as an adjustment to profit before tax for the six months ended September 30, 2026, against Rs 2.02 crore in the corresponding 2025 period. It also records Rs 1.85 crore of interest income received during the latest half year, but does not allocate that interest income between the two individual quarters.

How did Palred's expenses and tax affect Q2 profit?

Palred's total expenses were Rs 44.02 lakh in the September 2026 quarter, compared with implied expenses of Rs 39.18 lakh in the September 2025 quarter, based on reported total income of Rs 1.39 crore and profit before tax of Rs 99.79 lakh. The increase in expenses was Rs 4.84 lakh, exceeding the Rs 1.55 lakh increase in total income and contributing to the lower pre-tax profit.

Employee benefits expense was Rs 19.09 lakh in the latest quarter, depreciation and amortisation was Rs 1.23 lakh, finance cost was Rs 15,000, and other expenses were Rs 23.55 lakh. Palred reported no exceptional item for the September 2026 quarter, the June 2026 quarter or the September 2025 quarter.

Income-tax expense was Rs 24.13 lakh in the September 2026 quarter, compared with Rs 23.10 lakh a year earlier and Rs 21.27 lakh in the June 2026 quarter. The latest tax charge reduced profit before tax of Rs 96.50 lakh to profit after tax of Rs 73.70 lakh; in the June quarter, profit before tax was Rs 84.24 lakh.

How did Palred perform in the first half of FY27?

Palred reported standalone profit after tax of Rs 1.35 crore for the half year ended September 30, 2026, compared with Rs 1.44 crore in the corresponding prior-year half. Profit before tax fell to Rs 1.81 crore from Rs 1.91 crore, while income-tax expense declined to Rs 45.80 lakh from Rs 47.78 lakh.

Revenue from operations was Rs 75 lakh in both the latest and previous corresponding half years. Other income declined to Rs 1.94 crore from Rs 2.02 crore, taking total income down to Rs 2.69 crore from Rs 2.71 crore. The half-year comparison therefore shows that the reduction in profit occurred alongside lower other income rather than a change in reported operating revenue.

Palred's total comprehensive income for the latest half year was Rs 1.36 crore, compared with Rs 1.42 crore in the prior-year period. The difference between profit after tax and total comprehensive income reflected other comprehensive income of Rs 23,000 in the latest period, against a negative Rs 1.52 lakh a year earlier.

What does Palred's standalone balance sheet show?

Palred's standalone total assets were Rs 74.63 crore at September 30, 2026, up from Rs 72.86 crore at March 31, 2026. Bank balances other than cash and cash equivalents increased to Rs 60.19 crore from Rs 58.52 crore, while investments were unchanged at Rs 11 crore.

Cash and cash equivalents were Rs 5.08 lakh at September 30, 2026, compared with Rs 4.80 lakh at March 31, 2026. Other current assets were Rs 14.25 lakh at the September date, whereas the March 2026 balance-sheet presentation showed no amount for that line.

Palred's total equity rose to Rs 71.71 crore from Rs 70.36 crore, as other equity increased to Rs 59.48 crore from Rs 58.13 crore; equity share capital remained Rs 12.23 crore. Total liabilities increased to Rs 2.92 crore from Rs 2.50 crore, including other financial liabilities of Rs 2.48 crore versus Rs 1.79 crore.

What happened to Palred's standalone cash flow?

Palred used Rs 14.81 lakh in operating activities during the half year ended September 30, 2026, compared with net cash generated from operating activities of Rs 30 lakh in the corresponding 2025 period. Cash flow generated from operations before tax was Rs 30.04 lakh in the latest half year, but net income tax paid was Rs 44.85 lakh.

Investing activities generated Rs 18.06 lakh in the six months ended September 30, 2026, compared with Rs 20.23 lakh in the prior-year period. Palred recorded a net Rs 1.67 crore investment in fixed deposits and Rs 1.85 crore of interest income received during the latest half year.

Financing activities used Rs 3 lakh, including Rs 2.68 lakh of principal paid on lease liabilities and Rs 32,000 of interest on lease liabilities. Net cash and cash equivalents increased by Rs 25,000 during the period, from Rs 4.80 lakh at the beginning of the year to Rs 5.08 lakh at September 30, 2026.

Conclusion

Palred's September-quarter standalone profit declined year on year even though total income rose, because operating revenue was unchanged at Rs 37.50 lakh and expenses increased. Other income of Rs 1.03 crore remained the larger contributor to quarterly total income, while the half-year figures show lower other income, pre-tax profit and profit after tax than a year earlier.

The filing does not disclose a forward target, operating plan or scheduled subsequent event. The next disclosures to watch are whether revenue from operations changes from the Rs 37.50 lakh quarterly level, whether other income continues to support total income, and whether operating cash flow moves from the Rs 14.81 lakh half-year outflow.