Sollfege posts Rs 1.10 crore half-year profit, receivables rise

Sollfege Smart Electronics Limited posted unaudited profit after tax of Rs 1.10 crore for the half-year ended September 30, 2026, while trade receivables rose 59% to Rs 15.09 crore and purchases of fixed assets reached Rs 6.26 crore. The board approved the standalone results on November 14, 2026, after the company’s October 8, 2026 listing.

What did Sollfege report for the September 2026 half-year?

Sollfege reported total income of Rs 9.98 crore and profit before tax of Rs 1.49 crore for the half-year ended September 30, 2026. Revenue from operations contributed Rs 9.98 crore, while other income was Rs 18,000. Tax expense totalled Rs 38.58 lakh, comprising Rs 27.61 lakh of current tax and Rs 10.97 lakh of deferred tax.

Sollfege’s profit after tax was Rs 1.10 crore, and basic and diluted earnings per share were Rs 1.82 on equity shares with a face value of Rs 10 each. Total expenses were Rs 8.50 crore, including Rs 3.80 crore for purchases of stock-in-trade, Rs 2.31 crore for changes in inventories, Rs 88.59 lakh of employee-benefit expense and Rs 43.00 lakh of finance costs.

The available income-statement comparator is the year ended March 31, 2026, rather than a corresponding prior half-year. For that full year, Sollfege reported revenue from operations of Rs 22.21 crore and profit after tax of Rs 2.19 crore, compared with Rs 9.98 crore and Rs 1.10 crore respectively for the six months ended September 30, 2026. Sollfege said it did not provide half-year figures for March 31, 2026 or September 30, 2025 because it was listed recently on October 8, 2026.

How did Sollfege’s receivables, inventory and cash change?

Sollfege’s trade receivables increased by Rs 5.61 crore, or about 59%, to Rs 15.09 crore at September 30, 2026 from Rs 9.48 crore at March 31, 2026. The cash-flow statement records this increase as a Rs 5.61 crore working-capital outflow. The filing does not give customer-level collection dates or a reason for the receivables movement.

Inventories moved in the opposite direction, falling by Rs 2.31 crore to Rs 11.18 crore from Rs 13.50 crore at March 31, 2026. That reduction was recorded as a Rs 2.31 crore cash inflow in the cash-flow statement, while short-term loans and advances rose by Rs 42.12 lakh to Rs 65.64 lakh over the same balance-sheet period.

Cash and cash equivalents stood at Rs 10.60 lakh at September 30, 2026, down Rs 1.16 lakh from Rs 11.76 lakh at March 31, 2026. Current investments remained unchanged at Rs 2.28 lakh. At the September balance-sheet date, receivables of Rs 15.09 crore exceeded cash and cash equivalents, while inventories were Rs 11.18 crore.

What generated Sollfege’s operating cash flow?

Sollfege reported net cash flow from operating activities of Rs 6.69 crore for the half-year ended September 30, 2026, compared with an operating cash outflow of Rs 65.66 lakh for the year ended March 31, 2026. Operating profit before working-capital changes was Rs 2.20 crore in the half-year, after adding back Rs 28.45 lakh of depreciation and amortisation and Rs 43.00 lakh of finance costs to profit before tax.

The largest stated working-capital movement was a Rs 10.79 crore increase in other liabilities, recorded as an operating cash inflow. This was partly offset by the Rs 5.61 crore receivables outflow, the Rs 2.70 crore decline in trade payables, a Rs 53.32 lakh increase in loans and advances, and a Rs 15.45 lakh increase in other assets. The operating-cash figure therefore includes material balance-sheet movements alongside the Rs 1.49 crore profit before tax.

Short-term borrowings were Rs 4.00 crore at September 30, 2026, up from Rs 3.56 crore at March 31, 2026, while long-term borrowings declined to Rs 3.35 crore from Rs 3.42 crore. Shareholders’ funds increased to Rs 12.73 crore from Rs 11.63 crore, matching the increase in reserves and surplus to Rs 6.69 crore while share capital remained Rs 6.04 crore.

How much did Sollfege spend on fixed assets and financing?

Sollfege spent Rs 6.26 crore on purchases of fixed assets during the half-year ended September 30, 2026, against Rs 23.78 lakh in the year ended March 31, 2026. The investing-cash outflow for the half-year was also Rs 6.26 crore because the filing reports no other investing-cash movement for that period. Property, plant and equipment rose to Rs 11.50 crore from Rs 5.53 crore.

Cash flow from financing activities was an outflow of Rs 44.75 lakh for the September half-year. Sollfege reported loans taken of Rs 60.00 lakh, loan repayments of Rs 61.75 lakh and finance costs of Rs 43.00 lakh. Net cash and cash equivalents declined by Rs 1.16 lakh after the Rs 6.69 crore operating inflow, Rs 6.26 crore investing outflow and Rs 44.75 lakh financing outflow.

Sollfege said it is primarily engaged in manufacturing and trading plywood and allied products, which it treats as a single reportable segment under Accounting Standard 17. The audit committee reviewed the results and the board approved them on November 14, 2026. The statutory auditor’s limited review stated that nothing had come to its attention indicating that the results omitted required disclosures or contained a material misstatement.

Conclusion

Sollfege’s September-half filing combines Rs 1.10 crore of reported profit with substantial changes in working capital and capital spending. Receivables increased by Rs 5.61 crore as inventories fell by Rs 2.31 crore, while a Rs 10.79 crore increase in other liabilities was a major contributor to the reported Rs 6.69 crore operating cash inflow. Fixed-asset purchases of Rs 6.26 crore absorbed most of that operating cash generation.

The next disclosed reference point is Sollfege’s subsequent periodic financial reporting after its October 8, 2026 listing. The filing provides no collection schedule for receivables of Rs 15.09 crore and no asset-level description of the Rs 6.26 crore fixed-asset purchases, leaving later balance sheets and cash-flow statements to show the movement in those items and in other current liabilities of Rs 12.12 crore.