Punjab Communications Limited posts Rs 2.7982 crore quarterly loss

Punjab Communications Limited posted a Rs 2.7982 crore loss for the quarter ended September 30, 2026, reversing profits in the preceding and year-earlier quarters, as total expenses rose to Rs 10.8563 crore and revenue from operations declined to Rs 5.3456 crore. The board approved the unaudited provisional results on November 13, 2026.

Why did PCL report a loss in September 2026?

PCL reported a loss because total expenses of Rs 10.8563 crore exceeded total revenue of Rs 8.0581 crore in the quarter ended September 30, 2026. The resulting loss before tax and loss for the period was Rs 2.7982 crore, against a Rs 2.866 crore profit in the quarter ended June 30, 2026 and a Rs 3.2313 crore profit in the quarter ended September 30, 2025.

The sequential reversal reflected a Rs 5.7484 crore increase in total expenses, while total revenue rose by only Rs 0.0842 crore from Rs 7.9739 crore in June 2026. Revenue from operations fell by Rs 0.4865 crore sequentially to Rs 5.3456 crore, although other income increased by Rs 0.5707 crore to Rs 2.7125 crore.

Which expenses changed most for PCL during the quarter?

PCL recorded Rs 2.4953 crore of purchases of stock-in-trade in the September 2026 quarter, whereas the June 2026 column does not display an amount for that line. Cost of materials consumed also increased to Rs 1.6894 crore from Rs 1.0903 crore, while changes in inventories moved to an expense of Rs 0.4452 crore from a credit of Rs 1.3449 crore.

Other expenses rose to Rs 1.6926 crore from Rs 0.883 crore, and installation charges and annual maintenance contract, or AMC, service expenses increased to Rs 1.4205 crore from Rs 1.1559 crore. Employee benefits expense declined to Rs 3.0181 crore from Rs 3.2461 crore, but that reduction was smaller than the combined rise in the disclosed inventory-related, materials, other-expense and AMC-service lines.

Against the September 2025 quarter, total expenses rose by Rs 3.0252 crore despite revenue from operations falling by Rs 2.8204 crore. Cost of materials consumed was lower than the Rs 2.1472 crore reported a year earlier, but purchases of stock-in-trade of Rs 2.4953 crore and AMC-service expenses of Rs 1.4205 crore were above the comparable disclosed figures of Rs 0.8912 crore and Rs 0.1364 crore, respectively.

How did PCL perform in the first half of 2026-27?

PCL reported a Rs 0.0678 crore profit for the half year ended September 30, 2026, down from a Rs 3.5805 crore profit in the corresponding half year of 2025. Revenue from operations declined to Rs 11.1777 crore from Rs 14.8351 crore, while total revenue fell to Rs 16.032 crore from Rs 20.4097 crore.

Total expenses for the first half decreased to Rs 15.9642 crore from Rs 16.8292 crore, a reduction of Rs 0.865 crore that was smaller than the Rs 4.3777 crore decline in total revenue. This comparison explains why the half-year result was close to break-even despite remaining positive, rather than matching the prior-year period’s Rs 3.5805 crore profit.

PCL classified its business as a single operating segment covering telecom and its spares under Indian Accounting Standard 108, or Ind AS 108. The company said its activities are governed by the same set of risks and returns; its half-year other income of Rs 4.8543 crore included Rs 3.3352 crore of rental income, Rs 1.5082 crore of interest on fixed deposits and Rs 1.08 lakh of miscellaneous income.

What do PCL's balance sheet and cash flow show?

PCL reported total assets of Rs 88.1422 crore as of September 30, 2026, compared with Rs 88.9383 crore as of March 31, 2026. Inventories rose to Rs 5.079 crore from Rs 3.4867 crore, while trade receivables declined to Rs 10.7652 crore from Rs 13.2736 crore over the same period.

Cash and cash equivalents on the September 30 balance sheet stood at Rs 6.4968 crore, compared with Rs 6.1752 crore at March 31. Other bank balances were Rs 52.5005 crore, marginally below Rs 52.7106 crore at the year-end, and other current assets increased to Rs 2.7727 crore from Rs 1.7099 crore.

PCL’s other equity increased to Rs 18.8108 crore at September 30, 2026 from Rs 18.4048 crore at March 31, while share capital remained Rs 12.048 crore. Trade payables to creditors other than micro and small enterprises were Rs 13.9997 crore at September 30, compared with Rs 15.2974 crore at March 31.

The half-year cash-flow statement recorded net cash used in operating activities of Rs 4.4868 crore for the period ended September 30, 2026. It also recorded Rs 4.8435 crore of interest and rental income in operating adjustments, net cash from investing activities of Rs 4.8188 crore, and a Rs 0.3218 crore increase in cash and cash equivalents.

What did PCL disclose about inventory variation and the review?

PCL said it is taking necessary corrective actions to update variation in inventory in compliance with Indian Accounting Standard 2, or Ind AS 2. Its notes state that the quarter and half-year figures ended September 30, 2026 include Rs 1.2921 crore adjusted during the year in respect of shortages in work-in-progress, or WIP.

The company also said that figures for previous periods were regrouped and restated where necessary to make them comparable. The September-quarter statement reported a Rs 0.4452 crore inventory change expense, compared with a Rs 1.3449 crore credit in the June 2026 quarter, making inventory accounting a disclosed factor in the sequential expense movement.

R. Bansal & Co. issued a limited review report on PCL’s unaudited standalone financial results for the quarter and half year ended September 30, 2026. The report said nothing had come to the auditor’s attention to indicate that the statement had not disclosed the required information or that it contained a material misstatement, while also containing a section titled “Basis for qualification Conclusion” referring to Rs 20.03 lakh and Rs 1.1876 crore of stock-in-trade purchases.

PCL reported a basic and diluted loss per equity share of Rs 2.33 for the September quarter, compared with earnings per share of Rs 2.38 in June 2026 and Rs 2.69 in September 2025. Total comprehensive income was a Rs 3.1292 crore loss, comprising the Rs 2.7982 crore period loss and a Rs 0.331 crore re-measurement loss on defined-benefit obligations.

Conclusion

PCL’s September-quarter loss followed lower operating revenue and a sharp sequential increase in expenses, reversing profitability reported in both the June 2026 and September 2025 quarters. The first-half outcome of a Rs 0.0678 crore profit also shows the effect of revenue falling faster than total expenses compared with the corresponding half year.

The disclosed matter to watch is PCL’s corrective action on inventory variation under Ind AS 2 after the Rs 1.2921 crore WIP-shortage adjustment included during 2026-27. The next quarterly filing will show whether revenue from operations, which was Rs 11.1777 crore in the first half, changes alongside purchases, inventory movements and AMC-service expenses.