Spacenet first-half profit more than doubles to Rs 20.53 crore

Spacenet Enterprises India Limited reported consolidated profit of Rs 20.53 crore for the half year ended September 30, 2026, up from Rs 8.85 crore a year earlier, as other income increased to Rs 22.80 crore from Rs 3.04 crore while revenue from operations was nearly unchanged at Rs 102.59 crore.

Why did Spacenet's first-half profit rise?

Spacenet's first-half profit rose because the increase in other income outweighed a largely flat operating-revenue base and higher expenses. Profit before tax, or PBT, increased to Rs 22.70 crore in the half year ended September 30, 2026 from Rs 9.63 crore in the corresponding 2025 period, while total income rose to Rs 125.39 crore from Rs 104.85 crore.

Other income was Rs 22.80 crore in the 2026 half year, compared with Rs 3.04 crore a year earlier, an increase of Rs 19.76 crore. The cash-flow statement records Rs 20.74 crore of profit on sale of shares and Rs 2.01 crore of interest received during the period, while the segment reconciliation shows Rs 22.80 crore of unallocable other income.

Tax expense increased to Rs 2.18 crore from Rs 0.78 crore, including current tax of Rs 2.03 crore and deferred tax of Rs 0.14 crore. Even after that higher charge, profit for the period reached Rs 20.53 crore, compared with Rs 8.85 crore. Profit attributable to equity holders of the parent was Rs 20.49 crore, while non-controlling interests accounted for Rs 0.04 crore.

How did Spacenet's operating revenue and segments change?

Spacenet's revenue from operations increased by Rs 0.77 crore year on year to Rs 102.59 crore, but the mix shifted substantially from trading towards services. Service income rose to Rs 70.10 crore for the half year ended September 30, 2026 from Rs 49.54 crore a year earlier, an increase of Rs 20.56 crore. Trading of goods revenue fell to Rs 32.49 crore from Rs 52.28 crore, a decline of Rs 19.79 crore.

The segment results show a different pattern from revenue. Service-income segment profit before tax, depreciation and non-controlling interests was Rs 4.34 crore, below Rs 6.07 crore in the prior-year half. Trading of goods produced Rs 1.13 crore, compared with Rs 1.87 crore a year earlier. Total segment results therefore fell to Rs 5.46 crore from Rs 7.94 crore, before unallocable items and other income.

Unallocable expenditure increased to Rs 5.57 crore in the 2026 half year from Rs 1.35 crore in the previous corresponding period. The reconciliation then adds Rs 22.80 crore of unallocable other income, resulting in PBT of Rs 22.70 crore. The reported rise in PBT therefore was not matched by a rise in the combined segment-result figure.

What happened in Spacenet's September quarter?

Spacenet reported consolidated profit of Rs 6.76 crore in the quarter ended September 30, 2026, compared with Rs 5.01 crore in the quarter ended September 30, 2025 and Rs 13.76 crore in the June 2026 quarter. Quarterly PBT was Rs 6.34 crore, versus Rs 5.72 crore a year earlier, but below Rs 16.37 crore in the immediately preceding quarter.

Revenue from operations in the September quarter was Rs 53.71 crore, up from Rs 48.42 crore a year earlier and Rs 48.88 crore in June 2026. Other income was Rs 2.95 crore, almost unchanged from Rs 2.94 crore a year earlier, but lower than Rs 19.85 crore in the June quarter. That sequential change in other income was the main reason total income declined to Rs 56.66 crore from Rs 68.73 crore despite higher operating revenue.

Expenses were Rs 50.32 crore in the September quarter, compared with Rs 45.65 crore a year earlier and Rs 52.37 crore in June. Purchase of traded goods was Rs 40.80 crore, while other expenses were Rs 5.59 crore and finance costs were Rs 1.26 crore. Basic and diluted earnings per share, or EPS, were Rs 0.13 for the quarter, against Rs 0.08 in the September 2025 quarter.

What do Spacenet's balance sheet and cash flows show?

Spacenet's consolidated total assets rose to Rs 296.27 crore at September 30, 2026 from Rs 244.91 crore at March 31, 2026, while total equity increased to Rs 212.21 crore from Rs 181.49 crore. Non-current assets grew to Rs 192.45 crore from Rs 158.00 crore, including investments of Rs 63.66 crore and loans of Rs 37.50 crore.

Borrowings increased during the six months. Non-current borrowings were Rs 49.39 crore at September 30, compared with Rs 23.57 crore at March 31, while current borrowings were Rs 1.61 crore versus Rs 1.24 crore. Cash and cash equivalents increased to Rs 4.49 crore from Rs 2.96 crore.

Operating cash flow was negative Rs 17.50 crore for the half year, compared with a positive Rs 6.10 crore in the previous corresponding period. Cash generated from operations was negative Rs 17.07 crore, with a Rs 25.22 crore increase in other assets and a Rs 7.02 crore decrease in trade payables among the working-capital movements. Investing cash flow was negative Rs 4.40 crore, while financing activities supplied Rs 23.43 crore, including net borrowing proceeds of Rs 26.19 crore.

What did the limited review say about Spacenet's results?

Spacenet's consolidated results for the quarter and half year ended September 30, 2026 were reviewed by Gorantla & Co and approved by the board on November 13, 2026. The auditor said nothing had come to its attention that caused it to believe the statement did not make the required disclosures or contained a material misstatement.

The review was not an audit opinion. Gorantla & Co stated that a review is substantially less extensive than an audit and does not provide assurance that all significant matters that could be identified in an audit would be found. It also said that five subsidiaries' unaudited interim information included total revenue of Rs 67.54 crore and profit after tax of Rs 7.92 crore for the April-to-September 2026 period.

Conclusion

Spacenet's reported first-half earnings increased substantially, but the result was principally driven by a Rs 19.76 crore year-on-year increase in other income rather than operating-revenue growth. Revenue remained near Rs 102 crore as service income rose by Rs 20.56 crore and trading revenue declined by Rs 19.79 crore, while combined segment results fell to Rs 5.46 crore.

The filing does not disclose a future earnings target or a date for the next results announcement. It does disclose that the board authorised Spacenet's company secretary and compliance officer on November 13, 2026 to finalise a postal-ballot calendar and related arrangements, while the unresolved operating-cash-flow position was negative Rs 17.50 crore and non-current borrowings stood at Rs 49.39 crore at September 30, 2026.