Qualitek Labs H1 revenue rises 33%, profit falls sequentially

Qualitek Labs Limited reported consolidated revenue from operations of Rs 72.27 crore for the half year ended 30 September 2026, up 33.3% from Rs 54.21 crore a year earlier, while net profit fell sequentially to Rs 6.60 crore from Rs 9.83 crore as total expenses increased faster than total income.

How fast did Qualitek Labs revenue grow in the half year ended September 2026?

Qualitek Labs increased revenue from operations by Rs 18.05 crore year on year to Rs 72.27 crore in the half year ended 30 September 2026, from Rs 54.21 crore in the corresponding half year ended 30 September 2025. The reported increase was 33.3%. Revenue also exceeded the Rs 70.27 crore reported for the half year ended 31 March 2026 by Rs 2.00 crore.

Total income, including other income, reached Rs 73.08 crore in the September 2026 half year, compared with Rs 54.33 crore a year earlier and Rs 70.72 crore in the preceding half year. Other income was Rs 80.94 lakh, up from Rs 8.52 lakh in the September 2025 half year and Rs 44.22 lakh in the March 2026 half year.

Why did Qualitek Labs profit decline from the preceding half year?

Qualitek Labs reported profit before tax of Rs 8.55 crore for the half year ended 30 September 2026, down Rs 3.34 crore from Rs 11.89 crore in the half year ended 31 March 2026. Net profit declined by Rs 3.23 crore to Rs 6.60 crore over the same period, despite the Rs 2.00 crore sequential increase in revenue from operations.

The year-on-year comparison was different. Profit before tax rose from Rs 6.43 crore in the September 2025 half year to Rs 8.55 crore in the September 2026 half year, while net profit increased from Rs 4.77 crore to Rs 6.60 crore. Basic and diluted earnings per share were Rs 5.66 each, compared with Rs 7.80 each in the preceding half year and Rs 4.69 each a year earlier.

Tax expense totalled Rs 1.95 crore in the September 2026 half year, against Rs 2.06 crore in the March 2026 half year and Rs 1.66 crore in the September 2025 half year. The reported tax components included current tax of Rs 2.09 crore, deferred tax of Rs 9.14 lakh and a Rs 22.66 lakh reduction for tax expense relating to prior years.

Which expenses increased most for Qualitek Labs?

Qualitek Labs' total expenses rose to Rs 64.52 crore in the half year ended 30 September 2026, from Rs 58.77 crore in the preceding half year and Rs 47.90 crore a year earlier. The Rs 5.76 crore sequential increase in expenses was greater than the Rs 2.36 crore increase in total income, resulting in lower profit before tax.

Employee benefit expense increased by Rs 2.66 crore sequentially to Rs 27.18 crore, while other expenses rose by Rs 2.17 crore to Rs 21.18 crore. Finance cost increased to Rs 3.87 crore from Rs 2.88 crore, and depreciation and amortisation rose to Rs 3.97 crore from Rs 3.73 crore. The statement recorded no exceptional items in the September 2026 half year.

What does Qualitek Labs' September 2026 balance sheet show?

Qualitek Labs reported total assets of Rs 311.55 crore at 30 September 2026, compared with Rs 270.95 crore at 31 March 2026. Property, plant and equipment increased to Rs 77.87 crore from Rs 71.46 crore, while capital work-in-progress rose to Rs 69.77 crore from Rs 45.28 crore.

Total equity was Rs 159.03 crore at 30 September 2026, against Rs 152.43 crore six months earlier. Reserves and surplus rose by Rs 6.60 crore to Rs 147.37 crore, while paid-up equity share capital remained Rs 11.65 crore.

Long-term borrowings increased to Rs 66.12 crore at 30 September 2026 from Rs 60.12 crore at 31 March 2026, and short-term borrowings rose to Rs 48.54 crore from Rs 32.85 crore. Other current liabilities were Rs 23.30 crore, compared with Rs 13.09 crore at the March reporting date, and total current liabilities increased to Rs 84.06 crore from Rs 56.25 crore.

What is included in Qualitek Labs' consolidated results?

Qualitek Labs reported one business segment, testing and inspection services, and one geographic segment, within India. Its consolidated results include Interstellar Testing Centre Private Limited and Quality & Testing Info Solution Private Limited, both wholly owned subsidiaries, as well as subsidiary LabOps Global Private Limited.

LabOps Global Private Limited became a subsidiary on 23 May 2025 after Qualitek Labs acquired 740 equity shares representing 74% of its shareholding for Rs 7,400, paid entirely in cash. The company also acquired a food-testing laboratory in Navi Mumbai through a slump sale effective 1 September 2025 for Rs 8.82 crore in cash; the filing reported net assets and liabilities acquired of Rs 6.62 crore and goodwill of Rs 2.20 crore.

The audit committee and board approved the unaudited consolidated results on 13 November 2026. J Madan & Associates issued its limited review report on the same date and stated that nothing had come to its attention to indicate that the financial statement contained a material misstatement under the applicable requirements.

Conclusion

Qualitek Labs delivered higher revenue and net profit than in the corresponding half year ended 30 September 2025, with revenue rising 33.3% to Rs 72.27 crore and net profit increasing to Rs 6.60 crore from Rs 4.77 crore. Compared with the immediately preceding half year, however, expenses rose Rs 5.76 crore while total income rose Rs 2.36 crore, reducing profit before tax and net profit.

The next half-year disclosure will show whether revenue growth continues alongside employee, finance and other expense levels reported at 30 September 2026. Investors can also monitor capital work-in-progress of Rs 69.77 crore and total borrowings of Rs 114.67 crore, compared with Rs 45.28 crore and Rs 92.97 crore respectively at 31 March 2026.