SecUR Credentials Limited posts Rs 2.53 crore first-half loss

SecUR Credentials Limited reported a Rs 2.53 crore standalone loss for the half year ended September 30, 2026, compared with a Rs 1.27 crore loss a year earlier, after recording a Rs 1.30 crore exceptional item. Revenue from operations declined to Rs 26.90 lakh from Rs 27.25 lakh, while the Board approved the results on November 12, 2026.

Why did SecUR Credentials report a larger first-half loss?

SecUR Credentials reported a larger first-half loss because a Rs 1.30 crore exceptional item was recorded in the half year ended September 30, 2026. Loss before tax and loss for the period were both Rs 2.53 crore, against Rs 1.27 crore in the corresponding half year ended September 30, 2025, with no tax expense reported in either period.

Before exceptional items and tax, the loss was Rs 1.23 crore, compared with Rs 1.27 crore a year earlier. This pre-exceptional loss reduced by Rs 3.41 lakh, but the separately disclosed exceptional item more than offset that improvement. The filing does not state the nature of the exceptional item.

The charge was recorded in the September 2026 quarter, when the loss before tax reached Rs 1.92 crore. That compared with a loss before tax of Rs 61.76 lakh in the June 2026 quarter and Rs 62.45 lakh in the September 2025 quarter. The September-quarter loss before exceptional items and tax was Rs 61.40 lakh, slightly below the June-quarter Rs 61.76 lakh.

How did SecUR Credentials' revenue and expenses change?

SecUR Credentials' first-half revenue from operations fell to Rs 26.90 lakh from Rs 27.25 lakh in the prior-year period. September-quarter revenue was Rs 13.25 lakh, below Rs 13.65 lakh in June 2026 and Rs 14.05 lakh in September 2025. The statement reported no other income for these periods.

Total expenses declined to Rs 1.50 crore from Rs 1.54 crore in the prior first half. Depreciation and amortisation remained the largest expense at Rs 1.17 crore, versus Rs 1.18 crore a year earlier. Finance costs decreased to Rs 19.87 lakh from Rs 22.32 lakh, while employee-benefit expense was Rs 8.16 lakh against Rs 8.20 lakh.

Other expenses were Rs 5.15 lakh, compared with Rs 5.07 lakh in the comparable period. Basic and diluted loss per equity share was Rs 0.62 for the half year, double the Rs 0.31 reported a year earlier. The higher per-share loss followed the exceptional charge, while paid-up equity share capital remained Rs 41.06 crore.

What happened to SecUR Credentials' cash and operating cash flow?

SecUR Credentials' balance sheet reported cash and cash equivalents of Rs 24,000 at September 30, 2026, down from Rs 78,000 at March 31, 2026. Its half-year cash-flow statement reported a closing cash balance of Rs 23,000 and a net decrease of Rs 54,000 during the period.

Operating activities generated Rs 39.01 lakh of cash, despite the Rs 2.53 crore pre-tax loss. The cash-flow reconciliation included Rs 1.17 crore of depreciation and amortisation, Rs 1.45 crore of bad debts and provisions for trade receivables and advances, and a Rs 10.73 lakh increase in provisions.

Financing activities used Rs 39.55 lakh of cash in the half year. The reported outflow included Rs 19.87 lakh of interest paid, Rs 13.86 lakh of long-term borrowing repayments and Rs 5.82 lakh of short-term borrowing repayments. There was no reported investing cash flow in the half-year statement.

How did SecUR Credentials' balance sheet change?

SecUR Credentials' total assets fell to Rs 55.97 crore at September 30, 2026 from Rs 58.60 crore at March 31, 2026. Trade receivables decreased to Rs 23.12 crore from Rs 24.57 crore, property, plant and equipment declined to Rs 5.49 lakh from Rs 27.09 lakh, and intangible assets fell to Rs 2.93 crore from Rs 3.89 crore.

Inventory was unchanged at Rs 13.64 crore, while loans remained Rs 7.96 crore and other non-current financial assets remained Rs 7.62 crore. Total equity declined to Rs 29.59 crore from Rs 32.12 crore as other equity moved to negative Rs 11.48 crore from negative Rs 8.94 crore. Equity share capital was unchanged at Rs 41.06 crore.

Non-current borrowings declined to Rs 6.64 crore from Rs 6.78 crore, and current borrowings fell to Rs 9.88 crore from Rs 9.94 crore. Total liabilities were Rs 26.39 crore, compared with Rs 26.48 crore at March 31, 2026. Current liabilities included Rs 5.39 crore of trade payables and Rs 4.04 crore of other financial liabilities.

What matters did the limited-review report identify?

The limited-review report identified unavailable Goods and Services Tax, or GST, returns, reconciliations and supporting records, preventing the auditor from verifying related balances and compliance. Provident Fund and Employees' State Insurance challans, returns and reconciliation statements were also not produced for review.

The auditor stated that inventory disclosed in the financial statements was not found to exist during physical verification in the current period. It said this could indicate overstatement of inventory in prior periods, although the impact was not quantified. The September 2026 balance sheet nevertheless reported inventory of Rs 13.64 crore.

Trade receivables and trade payables were subject to confirmation and were accepted as certified by management because no independent balance confirmations were received. The auditor also said no expected credit loss provision had been made under Indian Accounting Standard 109, or Ind AS 109, and current maturities of long-term borrowings were not disclosed because repayment schedules were unavailable.

The review notes said statutory dues outstanding in opening balances remained unpaid at September 30, 2026. No gratuity provision was recognised and no actuarial valuation was obtained, which the auditor said did not comply with Ind AS 19 on employee benefits. The company website had not been updated as of the review date, preventing verification of related disclosure and periodic-update requirements.

Conclusion

SecUR Credentials' first-half figures show a marginal revenue decline and lower ordinary expenses, but the Rs 1.30 crore exceptional item lifted the reported loss to Rs 2.53 crore. The period also ended with lower equity of Rs 29.59 crore, assets of Rs 55.97 crore and cash and cash equivalents of Rs 24,000 on the balance sheet.

Readers should watch for any future disclosure explaining the exceptional item and for progress on the auditor's inventory, GST, statutory-dues, gratuity, expected-credit-loss and balance-confirmation matters. The filing does not disclose an operating target or a scheduled event after the Board's November 12, 2026 approval of the September-quarter results.