Precision Electronics Ltd first-half loss widens to Rs 3.7666 crore

Precision Electronics Limited reported a Rs 3.7666 crore net loss for the six months ended September 30, 2026, versus a Rs 1.6870 crore loss a year earlier, after income from operations fell to Rs 34.7002 crore and total expenses rose to Rs 40.0755 crore.

Why did Precision Electronics Ltd's first-half loss widen?

Precision Electronics Ltd's first-half loss widened because lower operating income was accompanied by higher direct, employee, finance, depreciation and other expenses. Loss after tax for the six months ended September 30, 2026 was Rs 3.7666 crore, up from Rs 1.6870 crore in the corresponding 2025 period, an increase of Rs 2.0796 crore.

Loss before tax rose to Rs 4.7419 crore from Rs 1.7953 crore a year earlier. Deferred tax income of Rs 97.53 lakh reduced the reported post-tax loss in the 2026 half year, compared with deferred tax income of Rs 14.93 lakh in the prior-year half. The results statement showed no exceptional or extraordinary items in either period.

Income from operations declined by Rs 3.1165 crore to Rs 34.7002 crore from Rs 37.8167 crore. Other income fell to Rs 63.34 lakh from Rs 23.62 lakh, taking total income to Rs 35.3336 crore from Rs 38.0529 crore.

First-half basic and diluted earnings per share, or EPS, was a loss of Rs 2.72, compared with a loss of Rs 1.22 for the six months ended September 30, 2025. Paid-up equity share capital was unchanged at Rs 13.8485 crore, with a face value of Rs 10 per share.

Which costs increased at Precision Electronics Ltd?

Precision Electronics Ltd recorded higher other direct costs, employee benefits, finance costs, depreciation and other expenses in the six months ended September 30, 2026. Other direct costs rose to Rs 661.59 lakh from Rs 333.87 lakh, an increase of Rs 327.72 lakh that exceeded the Rs 311.65 lakh decline in income from operations.

Employee benefit expenses increased to Rs 682.33 lakh from Rs 514.12 lakh, while finance costs rose to Rs 349.10 lakh from Rs 173.90 lakh. Depreciation and amortisation expense increased to Rs 219.18 lakh from Rs 83.38 lakh, reflecting an increase of Rs 135.80 lakh.

Cost of material consumed declined to Rs 1,143.21 lakh from Rs 2,168.90 lakh. That reduction did not offset the increase in other expense lines, including other expenses, which rose to Rs 729.25 lakh from Rs 521.54 lakh, and inventory changes, which increased to Rs 222.89 lakh from Rs 189.12 lakh.

Total expenses increased by Rs 22.72 lakh to Rs 4,007.55 lakh from Rs 3,984.83 lakh. The comparison shows a changed cost mix in the first half: lower material consumption was outweighed by higher direct operating, employee, financing, depreciation and other costs.

How did Precision Electronics Ltd perform in the September 2026 quarter?

Precision Electronics Ltd reported a Rs 1.4077 crore net loss for the quarter ended September 30, 2026, compared with a Rs 1.4042 crore loss in the September 2025 quarter. Income from operations rose to Rs 21.4197 crore from Rs 15.5532 crore, while total income increased to Rs 21.6291 crore from Rs 15.6700 crore.

Quarterly total expenses increased to Rs 23.3849 crore from Rs 17.0795 crore, producing a pre-tax loss of Rs 1.7558 crore against Rs 1.4094 crore a year earlier. Deferred tax income was Rs 34.80 lakh in the September 2026 quarter, compared with Rs 4.62 lakh in the prior-year quarter.

The September-quarter loss narrowed from Rs 2.3588 crore in the preceding June 2026 quarter to Rs 1.4077 crore. Income from operations increased from Rs 13.2805 crore in June to Rs 21.4197 crore in September, although total expenses also rose from Rs 16.6906 crore to Rs 23.3849 crore.

The sequential result showed a lower pre-tax loss of Rs 1.7558 crore in September, following a Rs 2.9862 crore pre-tax loss in June. Finance costs increased sequentially to Rs 184.36 lakh from Rs 164.75 lakh, while the company remained loss-making for both quarters.

What changed in Precision Electronics Ltd's financial position and cash flow?

Precision Electronics Ltd reported total assets of Rs 112.0512 crore at September 30, 2026, compared with Rs 106.4346 crore at March 31, 2026. Current assets increased to Rs 59.8991 crore from Rs 53.0108 crore, including inventories of Rs 21.6294 crore and trade receivables of Rs 17.5631 crore.

Equity declined to Rs 11.0361 crore from Rs 14.8026 crore over the same period, as other equity moved to negative Rs 2.8127 crore from positive Rs 95.39 lakh. Non-current borrowings declined to Rs 21.3955 crore from Rs 25.5455 crore, while current borrowings increased to Rs 35.2358 crore from Rs 28.0149 crore.

Net cash used in operating activities was Rs 2.8568 crore for the half year ended September 30, 2026. The cash-flow statement recorded a Rs 4.3219 crore increase in inventories and a Rs 68.54 lakh increase in trade and other receivables, partly offset by a Rs 2.9894 crore increase in trade payables.

Investing activities used Rs 95.00 lakh, including Rs 1.8076 crore of payments for property, plant and equipment and capital advances. Financing activities generated Rs 3.7734 crore after Rs 10.2979 crore of borrowing proceeds, Rs 2.6091 crore of borrowings repayment, Rs 1.0080 crore of lease-liability repayment and Rs 2.9074 crore of net interest paid. Cash and cash equivalents ended at Rs 6.17 lakh, compared with Rs 9.51 lakh at March 31, 2026.

Conclusion

Precision Electronics Ltd's first-half result combined a Rs 3.1165 crore decline in income from operations with a Rs 22.72 lakh rise in total expenses, resulting in a Rs 3.7666 crore net loss. Higher other direct costs, employee benefits, finance costs and depreciation more than offset the decline in material consumption, while operating cash flow was negative at Rs 2.8568 crore.

Investors can watch whether the sequential increase in September-quarter operating income from Rs 13.2805 crore to Rs 21.4197 crore continues and whether finance and direct costs moderate. Precision Electronics Ltd also disclosed that its board approved, subject to member and regulatory approvals, an objects-clause addition intended to support expansion into precision machined parts and specified defence, security, electronic and unmanned-platform systems.