Power & Instrumentation (Gujarat) books Rs 3.1039 crore

Power & Instrumentation (Gujarat) Limited recognised Rs 3.1039 crore of price-variation revenue from Ajmer Vidyut Vitran Nigam Limited for the period ended September 30, 2026, although the approval letter was dated October 6, 2026. The company recorded the amount as unbilled revenue after concluding that its contractual right arose during the reporting period.

How did Power & Instrumentation (Gujarat) account for the AVVNL claim?

Power & Instrumentation (Gujarat) accounted for Rs 3.1039 crore as variable consideration under Indian Accounting Standard 115, or Ind AS 115, and included it in revenue from operations for the period ended September 30, 2026. Its contract with Ajmer Vidyut Vitran Nigam Limited, or AVVNL, contains a price-variation clause. The company said that clause created its right to the amount for supplies made or work executed during the period, while AVVNL’s approval confirmed the amount.

Power & Instrumentation (Gujarat) treated AVVNL’s October 6, 2026 letter as an adjusting event under Ind AS 10 because it was received after September 30 but before the board approved the results on November 7, 2026. The accounting treatment placed Rs 3.1039 crore in the September reporting period rather than a later period. The company presented the recognised amount as unbilled revenue, and the filing does not disclose an invoice date, payment date or collection status.

How material was the AVVNL claim to September-quarter revenue?

The Rs 3.1039 crore AVVNL claim equalled about 4.46% of Power & Instrumentation (Gujarat)’s standalone revenue from operations of Rs 69.6025 crore in the quarter ended September 30, 2026. This percentage is a calculation from figures disclosed in the filing. The company did not disclose the related cost, gross margin or revenue excluding the AVVNL claim.

Standalone revenue from operations increased from Rs 67.8664 crore in the quarter ended September 30, 2025 and from Rs 40.6761 crore in the preceding June 2026 quarter. Profit before tax rose to Rs 7.0302 crore from Rs 6.0626 crore a year earlier, while net profit increased to Rs 5.5008 crore from Rs 4.5213 crore. The filing identifies the AVVNL amount as recognised revenue, but does not attribute the full quarter-on-quarter or year-on-year change to that claim.

What changed in Power & Instrumentation (Gujarat)’s half-year results?

Power & Instrumentation (Gujarat) reported standalone revenue from operations of Rs 110.2786 crore for the half year ended September 30, 2026, compared with Rs 109.1709 crore in the corresponding prior-year half. Profit before tax increased to Rs 10.5314 crore from Rs 9.5587 crore, and net profit rose to Rs 8.1559 crore from Rs 7.1038 crore. The company operates in one segment, Electrical Contracting, so it did not provide a segment-wise split of revenue or profit.

Expenses changed across several lines in the half-year comparison. Purchases of stock-in-trade fell to Rs 96.3688 crore from Rs 99.5444 crore, while employee benefits expense increased to Rs 2.4055 crore from Rs 2.0933 crore. Finance costs rose to Rs 2.6749 crore from Rs 1.4561 crore, and other expenses increased to Rs 3.236 crore from Rs 1.4243 crore. These movements occurred alongside the Rs 1.1077 crore increase in revenue from operations.

Why did operating cash flow differ from reported profit?

Power & Instrumentation (Gujarat) reported net cash used in operating activities of Rs 86.31 lakh for the half year ended September 30, 2026, compared with operating cash generated of Rs 13.6819 crore in the previous-year half. Cash generated from operations fell to Rs 1.0919 crore from Rs 14.0019 crore, despite profit before tax rising to Rs 10.5314 crore from Rs 9.5587 crore. The filing therefore shows a different cash-flow outcome from the reported profit comparison.

Working-capital movements included a Rs 17.4705 crore increase in other financial assets and a Rs 7.4273 crore increase in other current assets during the half year ended September 30, 2026. Inventory increased by Rs 4.50 crore, while trade payables increased by Rs 9.132 crore. The cash-flow statement describes other financial assets as security deposits, retention and other items, but does not identify how much of those movements relates to the Rs 3.1039 crore AVVNL unbilled revenue.

What balance-sheet and review matters were disclosed?

Power & Instrumentation (Gujarat)’s standalone other current assets stood at Rs 42.2518 crore at September 30, 2026, compared with Rs 34.8245 crore at March 31, 2026. Other financial assets increased to Rs 70.9796 crore from Rs 56.874 crore, while inventories rose to Rs 70.3525 crore from Rs 65.8525 crore. The filing does not reconcile the AVVNL unbilled revenue to a specific balance-sheet line.

The statutory auditor included the AVVNL accounting and inventory valuation in an emphasis of matter in its limited-review report dated November 7, 2026. It said final inventory values were calculated and certified by management because inventory is technical and held at various locations, and that it could not cross-confirm them. The auditor also stated that its review, which provides less assurance than an audit, had not identified anything causing it to believe the standalone results failed to meet required disclosure requirements or contained a material misstatement.

Conclusion

Power & Instrumentation (Gujarat)’s September 2026 standalone results include Rs 3.1039 crore of AVVNL price-variation revenue because management concluded that the contractual entitlement existed by September 30 and AVVNL’s October 6 approval established the amount. Quarterly revenue reached Rs 69.6025 crore and net profit reached Rs 5.5008 crore, while first-half operating cash flow was an outflow of Rs 86.31 lakh.

The next disclosed matter to watch is whether the Rs 3.1039 crore of unbilled revenue is billed or collected after September 30, 2026, as the filing gives neither an invoice nor a payment date. Investors can also monitor changes in other financial assets of Rs 70.9796 crore, other current assets of Rs 42.2518 crore and inventory of Rs 70.3525 crore, whose final value was management-certified for the September results.