Paluck Technologies’ power and fuel expense reached Rs 27.82 crore

Paluck Technologies Limited reported power and fuel expense of Rs 27.82 crore in the 11 months ended February 28, 2026, compared with Rs 4.03 crore in FY25. The expense accounted for 99.8% of direct and manufacturing expenses of Rs 27.87 crore, even as revenue from operations was Rs 105.02 crore.

Why did Paluck Technologies’ power and fuel expense reach Rs 27.82 crore?

Paluck Technologies’ disclosed power and fuel expense increased by Rs 23.79 crore between FY25 and the 11 months ended February 28, 2026. The restated statements do not provide a split between electricity and other fuel, consumption volumes, unit prices, operating locations, suppliers or customer contracts. The filings therefore establish the size and timing of the movement, but do not identify its operational cause.

The increase was concentrated in direct and manufacturing expenses, which rose to Rs 27.87 crore from Rs 4.14 crore in FY25. Power and fuel made up Rs 27.82 crore of the latest-period total, while loading and unloading was Rs 5.20 lakh; freight and other expenses were Rs 1,000 each. In FY25, power and fuel of Rs 4.03 crore was also the largest component of the Rs 4.14 crore category.

How did power and fuel alter Paluck Technologies’ cost structure?

Paluck Technologies’ power and fuel expense represented 26.5% of revenue from operations in the 11 months ended February 28, 2026, compared with 3.9% in FY25. Revenue from operations rose by Rs 2.21 crore to Rs 105.02 crore from Rs 102.81 crore, a much smaller change than the Rs 23.79 crore increase in power and fuel. The reported cost mix therefore changed despite revenue remaining close to the FY25 level in rupee terms.

Cost of materials consumed moved in the opposite direction, falling to Rs 45.30 crore from Rs 78.28 crore. Materials consumption consequently equalled 43.1% of latest-period revenue from operations, compared with 76.1% in FY25, while direct and manufacturing expenses increased from 4.0% to 26.5%. All reported material purchases were indigenous in each of the four periods disclosed, including Rs 45.30 crore in the latest 11-month period.

Finished-goods inventory increased by Rs 1.19 crore during the 11 months ended February 28, 2026, producing a negative Rs 1.19 crore expense under changes in inventories. FY25 recorded a larger Rs 11.48 crore finished-goods inventory increase and a negative Rs 11.48 crore inventory-change line. Under Paluck Technologies’ accounting policy, finished goods are valued at raw-material cost plus proportionate conversion cost, or, where detailed costing is impractical, estimated selling price less an appropriate margin.

Did Paluck Technologies’ revenue mix change with the expense increase?

Paluck Technologies shifted toward product sales in the 11 months ended February 28, 2026. Domestic product sales rose to Rs 83.86 crore from Rs 64.53 crore in FY25, while service income declined to Rs 21.15 crore from Rs 38.28 crore. Product sales thus represented 79.9% of revenue from operations, up from 62.8% in FY25.

The statements identify two primary segments, automobile and engineering services and logistics and equipment rental services, under Accounting Standard 17 on segment reporting. However, they do not allocate product sales, service income, power and fuel, or materials costs between those segments. The reported revenue mix can therefore be compared by product and service classification, but it cannot establish which segment generated the higher power and fuel charge.

Other expense lines also changed alongside the revenue mix. Logistics and equipment rental service expense, classified within other expenses, declined to Rs 1.14 crore from Rs 4.19 crore, while employee benefit expense declined to Rs 4.92 crore from Rs 5.11 crore. Finance costs increased to Rs 2.69 crore from Rs 1.87 crore, showing that the power and fuel movement occurred with changes across several cost categories rather than a uniform rise in expenses.

What happened to profit and operating cash flow?

Paluck Technologies’ profit before tax increased to Rs 18.49 crore in the 11 months ended February 28, 2026 from Rs 12.84 crore in FY25, and profit after tax increased to Rs 13.84 crore from Rs 9.63 crore. Total expenses fell to Rs 86.61 crore from Rs 90.05 crore because the Rs 32.98 crore reduction in materials consumption and the Rs 3.59 crore reduction in other expenses exceeded the Rs 23.73 crore increase in direct and manufacturing expenses.

Depreciation and amortisation declined to Rs 2.83 crore from Rs 4.37 crore, while total tax expense increased to Rs 4.65 crore from Rs 3.21 crore. The profit comparison does not show that the power and fuel increase had no earnings effect: it shows that lower materials consumption, lower other expenses and lower depreciation outweighed that increase in the reported statement of profit and loss.

Net cash generated from operating activities was Rs 6.90 crore in the 11 months ended February 28, 2026, compared with Rs 10.85 crore in FY25. During the latest period, trade receivables increased by Rs 5.04 crore and trade payables declined by Rs 10.25 crore, while provisions increased by Rs 6.65 crore. Those working-capital changes affected the conversion of the Rs 18.49 crore pre-tax profit into operating cash.

Which balance-sheet figures frame the cost change?

Paluck Technologies held finished-goods inventory of Rs 29.99 crore at February 28, 2026, compared with Rs 28.80 crore at March 31, 2025. Trade receivables rose to Rs 27.53 crore from Rs 22.49 crore, and the entire latest balance was classified as undisputed and considered good, with an ageing of less than one year. Paluck Technologies uses a 12-month operating cycle for current and non-current asset and liability classification.

Total borrowings, including current maturities of long-term borrowings, were Rs 13.17 crore at February 28, 2026, down from Rs 17.49 crore at March 31, 2025. The latest total comprised Rs 3.87 crore of long-term borrowings and Rs 9.30 crore of short-term borrowings. Bank interest expense nevertheless increased to Rs 2.55 crore from Rs 1.57 crore, so the disclosed closing borrowing balances alone do not explain the finance-cost increase.

The comparison also has a defined period limitation. The latest financial period covers 11 months to February 28, 2026, whereas FY25 covers 12 months to March 31, 2025. Power and fuel exceeded the FY25 amount despite the shorter period, but the restated statements do not disclose a monthly run rate or a subsequent full-year result that would establish whether the cost level continued.

Conclusion

Paluck Technologies’ reported cost composition changed materially in the 11 months ended February 28, 2026: power and fuel reached Rs 27.82 crore and accounted for nearly all direct and manufacturing expenses, while materials consumption fell to Rs 45.30 crore. Higher product sales and lower materials, other expenses and depreciation contributed to profit after tax of Rs 13.84 crore despite the higher direct cost.

The next disclosed result should show whether power and fuel remains near the latest 11-month level and whether Paluck Technologies provides a breakdown by consumption, pricing, facility, supplier or segment. The supplied restated statements disclose no power-and-fuel plan, energy contract, supplier concentration, capacity change or segment-level allocation, leaving the drivers and persistence of the increase unresolved.