PTL profit falls 27% as other income declines in September quarter

PTL Enterprises Limited reported profit of Rs 10.84 crore for the quarter ended September 30, 2026, down 27% year on year from Rs 14.78 crore, as other income fell by Rs 2.80 crore and expenses increased despite revenue from its plant lease remaining at Rs 16.09 crore.

Why did PTL's September-quarter profit fall?

PTL's profit fell because lower other income and higher expenses reduced profit before tax even though operating revenue was unchanged. Profit before tax for the quarter ended September 30, 2026 was Rs 14.70 crore, compared with Rs 18.61 crore in the quarter ended September 30, 2025. Tax expense rose marginally to Rs 3.86 crore from Rs 3.83 crore, resulting in profit of Rs 10.84 crore.

Other income was Rs 2.83 crore in the September 2026 quarter, down from Rs 5.63 crore in the year-earlier quarter. That Rs 2.80 crore decline accounted for the full year-on-year fall in total income, which was Rs 18.93 crore compared with Rs 21.73 crore. In contrast, other income was Rs 13 lakh in the preceding June 2026 quarter, making the September-quarter total income higher than the Rs 16.21 crore reported in June.

Total expenses rose to Rs 4.23 crore in the September 2026 quarter from Rs 3.12 crore a year earlier. Other expenses increased to Rs 1.82 crore from Rs 66.85 lakh, while employee-benefit expense was Rs 84.20 lakh. Finance costs fell to Rs 1 crore from Rs 1.18 crore, but this reduction did not offset the increase in other expenses.

Was PTL's lease revenue unchanged during the September quarter?

Yes, PTL reported revenue from operations of Rs 16.09 crore in both the quarters ended September 30, 2026 and September 30, 2025. The company says its operations predominantly comprise one business segment: income from leasing a plant to Apollo Tyres Ltd. The identical revenue figure therefore represents unchanged reported income from PTL's sole disclosed operating activity.

Revenue from operations was also nearly flat sequentially at Rs 16.09 crore in the September 2026 quarter, after Rs 16.08 crore in the June 2026 quarter. For the half year ended September 30, 2026, operating revenue was Rs 32.18 crore, the same as in the corresponding half year of 2025. PTL reported annual operating revenue of Rs 64.34 crore for the year ended March 31, 2026.

The comparison shows that PTL's lower profit did not stem from its disclosed lease-revenue line. The decline in total income matched the fall in other income, while expenses increased by Rs 1.11 crore. The September 2026 quarter also had earnings per share of Rs 0.82, compared with Rs 1.12 in the September 2025 quarter.

How did PTL perform in the first half ended September 2026?

PTL reported first-half profit of Rs 19.60 crore for the half year ended September 30, 2026, compared with Rs 24 crore in the corresponding 2025 half year. Profit before tax declined to Rs 27.29 crore from Rs 31.62 crore, while revenue from operations remained unchanged at Rs 32.18 crore in both periods.

Other income for the latest half year was Rs 2.96 crore, compared with Rs 5.74 crore a year earlier. Total expenses rose to Rs 7.85 crore from Rs 6.29 crore, led by other expenses of Rs 3.06 crore compared with Rs 1.68 crore. Employee-benefit expense increased to Rs 1.64 crore from Rs 1.54 crore, whereas finance costs declined to Rs 2.03 crore from Rs 2.35 crore.

Total comprehensive income was Rs 13.01 crore in the half year ended September 2026, down from Rs 67.44 crore in the corresponding period. Other comprehensive income was negative Rs 6.49 crore, compared with positive Rs 43.44 crore a year earlier. The reported fair-value movement on equity instruments carried through other comprehensive income was negative Rs 8.17 crore, against a positive Rs 50.31 crore in the prior-year half.

What do PTL's cash flow and balance-sheet figures show?

PTL generated net cash from operating activities of Rs 13.24 crore in the half year ended September 30, 2026, compared with Rs 22.70 crore in the corresponding 2025 half year. Cash generated from operations before direct taxes was Rs 20.67 crore versus Rs 27.79 crore, and direct taxes paid rose to Rs 7.42 crore from Rs 5.10 crore.

Cash and cash equivalents were Rs 69.54 lakh at September 30, 2026, down from Rs 2.87 crore at March 31, 2026. Financing activities used Rs 18.16 crore during the half year, including a final-dividend payment of Rs 13.24 crore and repayment of long-term borrowings of Rs 4.71 crore. In the corresponding 2025 half year, financing activities used Rs 28.09 crore, including Rs 23.17 crore of final-dividend payments.

Total assets were Rs 1,052.63 crore at September 30, 2026, compared with Rs 1,058.07 crore at March 31, 2026. Property, plant and equipment stood at Rs 605.18 crore, while investments were Rs 434.86 crore. Total equity was Rs 842.43 crore and total liabilities were Rs 210.20 crore, compared with Rs 842.57 crore and Rs 215.50 crore respectively at the March 2026 year-end.

PTL's statutory auditor, SCV & Co. LLP, issued an unmodified conclusion on the September 2026 quarter and half-year results in its November 4, 2026 limited-review report. The auditor said nothing had come to its attention to indicate that the results failed to provide required disclosures or contained a material misstatement. PTL's board approved the results on November 4, 2026.

Conclusion

PTL's September-quarter numbers show that stable lease revenue of Rs 16.09 crore was insufficient to prevent a 27% decline in profit to Rs 10.84 crore. The year-on-year result reflected a Rs 2.80 crore reduction in other income and a Rs 1.11 crore increase in expenses, while first-half operating cash flow declined to Rs 13.24 crore from Rs 22.70 crore.

The next results will show whether other income, which was Rs 2.83 crore in the September quarter after Rs 13 lakh in June, changes further and how cash develops after the Rs 13.24 crore final-dividend payment. PTL also said it continues to monitor rules, clarifications and guidance under the Labour Codes and will assess any resulting accounting implications.