Sancode Technologies reports Rs 16.94 lakh half-year profit

Sancode Technologies Limited reported a consolidated profit after tax of Rs 16.94 lakh for the half year ended September 30, 2026, reversing an Rs 11.22 lakh loss a year earlier. Revenue from operations increased to Rs 7.86 crore from Rs 7.46 crore, while total income exceeded total expenses by Rs 17.56 lakh before tax.

What did Sancode Technologies report for the September 2026 half?

Sancode Technologies returned to consolidated profitability in the half year ended September 30, 2026, with profit after tax of Rs 16.94 lakh against a loss of Rs 11.22 lakh in the corresponding 2025 half. Profit before tax was Rs 17.56 lakh, compared with a pre-tax loss of Rs 24.42 lakh a year earlier, and the latest period included a tax expense of Rs 62,000.

Revenue from operations was Rs 7.86 crore, up Rs 40.11 lakh from Rs 7.46 crore in the half year ended September 30, 2025. Other income increased to Rs 13.02 lakh from Rs 1.44 lakh, bringing total income to Rs 7.99 crore from Rs 7.47 crore. The board approved the consolidated results on November 14, 2026.

The September 2026 net profit consisted of Rs 14.15 lakh attributable to the parent and Rs 2.78 lakh attributable to non-controlling interest. In the year-earlier half, the parent recorded profit of Rs 10.73 lakh, but non-controlling interest recorded a loss of Rs 21.95 lakh, resulting in the reported consolidated loss of Rs 11.22 lakh.

How did Sancode Technologies' income and costs change year on year?

Sancode Technologies' total income rose by Rs 51.69 lakh year on year while total expenses increased by Rs 9.71 lakh, moving the group from a pre-tax loss to a Rs 17.56 lakh pre-tax profit. Total expenses were Rs 7.81 crore in the September 2026 half, compared with Rs 7.71 crore in the September 2025 half.

Employee-benefit expense increased to Rs 1.03 crore from Rs 93.60 lakh, while finance cost rose to Rs 3.25 lakh from Rs 49,000. Other expenses declined to Rs 6.72 crore from Rs 6.74 crore, and depreciation and amortisation expense decreased to Rs 2.95 lakh from Rs 3.16 lakh. The rise in other income to Rs 13.02 lakh also compared with Rs 1.44 lakh in the prior-year period.

The tax line changed from a credit of Rs 13.21 lakh in the September 2025 half to an expense of Rs 62,000 in the latest half. Despite that reversal, profit after tax improved by Rs 28.16 lakh because profit before tax rose by Rs 41.98 lakh over the same comparison.

How did Sancode Technologies compare with the March 2026 half?

Sancode Technologies' September-half profit was lower than the Rs 59.32 lakh profit reported for the preceding half ended March 31, 2026. Revenue from operations declined by Rs 44.72 lakh from Rs 8.30 crore, while total income fell by Rs 40.99 lakh from Rs 8.40 crore.

Total expenses increased to Rs 7.81 crore in the September 2026 half from Rs 7.64 crore in the March 2026 half. Other expenses rose by Rs 20.29 lakh to Rs 6.72 crore, although employee-benefit expense declined by Rs 5.09 lakh to Rs 1.03 crore. Profit before tax therefore fell from Rs 76.09 lakh to Rs 17.56 lakh.

Basic earnings per share, or EPS, on total consolidated profit was Rs 0.29 for September 2026, versus Rs 1.46 in the March 2026 half. Basic EPS attributable to the parent was Rs 0.24, compared with Rs 0.88, while paid-up equity share capital rose to Rs 7.46 crore from Rs 4.07 crore.

What changed in Sancode Technologies' equity and financing during the half?

Sancode Technologies converted 11,11,111 convertible warrants into equity shares on May 14, 2026, following shareholder approval on August 19, 2025 at an issue price of Rs 54 per warrant. The stated issue price included a premium of Rs 44 per warrant over the Rs 10 face value of each equity share.

Shareholders also approved 23,25,582 convertible warrants on March 25, 2026 at Rs 172 per warrant, including a Rs 162 premium. Sancode Technologies converted 22,75,582 of those warrants into equity shares on July 22, 2026, while 50,000 warrants remained unconverted at September 30, 2026.

The cash-flow statement recorded a Rs 3.39 crore increase in share capital and a Rs 41.65 crore increase in securities premium during the September 2026 half. It also reported Rs 63.99 crore of proceeds, including securities premium, from compulsorily convertible preference shares issued by subsidiary Sancode Semi to outside investors.

What do Sancode Technologies' cash flow, assets and review report show?

Sancode Technologies generated net operating cash flow of Rs 1.51 crore in the September 2026 half, compared with Rs 9.97 lakh in the September 2025 half. Cash generated from operations was Rs 1.51 crore before a net income-tax payment of Rs 28,000, while trade receivables increased by Rs 2.55 crore during the latest period.

Investing activities used Rs 104.62 crore, including Rs 100 crore invested in fixed deposits with maturities of more than 12 months and Rs 4.73 crore spent on fixed assets, including capital work in progress. Financing activities generated Rs 113.94 crore, compared with an outflow of Rs 11.86 lakh a year earlier, and cash and cash equivalents ended September 30, 2026 at Rs 13.74 crore versus Rs 2.91 crore at March 31, 2026.

Consolidated total assets stood at Rs 126.22 crore at September 30, 2026, compared with Rs 10.36 crore at March 31, 2026. Other non-current assets were Rs 100.06 crore and capital work in progress was Rs 4.72 crore. The auditor's limited-review report was not modified; it noted that three subsidiaries' results were based on other auditors' reviews and two subsidiaries' statements were certified by management.

Conclusion

Sancode Technologies moved from a consolidated loss to a Rs 16.94 lakh profit in the September 2026 half as total income increased by Rs 51.69 lakh year on year and the increase in total expenses was Rs 9.71 lakh. The result remained below the March 2026 half, when profit after tax was Rs 59.32 lakh and basic consolidated EPS was Rs 1.46.

The next disclosed matter to watch is the status of the remaining 50,000 unconverted warrants approved in March 2026. The filing also records Rs 100 crore placed in fixed deposits with maturities exceeding 12 months, Rs 4.72 crore of capital work in progress, and the April 15, 2026 incorporation of subsidiary Sancode Electronics Private Limited.