Spacenet Q2 profit drops to Rs 19.97 lakh as income falls

Spacenet Enterprises India Limited reported standalone profit of Rs 19.97 lakh for the quarter ended September 30, 2026, down from Rs 12.41 crore in the June quarter as other income declined to Rs 1.18 crore from Rs 16.62 crore. Revenue from operations rose year on year to Rs 17.49 crore from Rs 14.00 crore.

Why did Spacenet's September-quarter profit decline?

Spacenet's September-quarter profit declined chiefly because other income fell by Rs 15.44 crore from the June 2026 quarter. Other income was Rs 1.18 crore in the quarter ended September 30, compared with Rs 16.62 crore in the preceding quarter, while revenue from operations was broadly stable at Rs 17.49 crore against Rs 17.57 crore.

Profit before tax was Rs 21.62 lakh in the September quarter, compared with Rs 14.57 crore in June. The half-year cash-flow reconciliation recorded Rs 15.74 crore of profit on sale of investments for the six months ended September 30, 2026. The filing does not allocate that gain between quarters, but the June-quarter concentration of other income coincided with the much higher first-quarter profit.

Did Spacenet's operating revenue increase year on year?

Yes, Spacenet's revenue from operations increased to Rs 17.49 crore in the September 2026 quarter from Rs 14.00 crore a year earlier. That represented growth despite revenue being marginally lower than the Rs 17.57 crore reported for the June 2026 quarter.

Purchases of traded goods, the largest expense line, were Rs 15.26 crore in the September quarter, down from Rs 16.46 crore in June but well above Rs 1.84 crore in the year-earlier quarter. Employee-benefit expense fell to Rs 77.56 lakh from Rs 2.05 crore a year earlier, while finance costs increased to Rs 1.26 crore from Rs 3.01 lakh.

Total expenses were Rs 18.45 crore in the September quarter, compared with Rs 19.62 crore in June and Rs 20.84 crore a year earlier. Total income was Rs 18.66 crore, leaving profit before tax of Rs 21.62 lakh. In the September 2025 quarter, total income of Rs 22.49 crore and expenses of Rs 20.84 crore produced profit before tax of Rs 1.64 crore.

How much did investment gains affect Spacenet's half-year results?

Investment-related gains materially affected Spacenet's first-half results, with the cash-flow reconciliation showing Rs 15.74 crore of profit on sale of investments for the half year ended September 30, 2026. The company also received Rs 20.24 crore of proceeds from sale of investments and Rs 2.01 crore of interest during that period.

Other income was Rs 17.80 crore in the 2026 half year, compared with Rs 2.49 crore in the corresponding 2025 period. This contributed to profit before tax rising to Rs 14.79 crore from Rs 1.98 crore and profit for the period increasing to Rs 12.61 crore from Rs 1.44 crore. Revenue from operations, however, declined to Rs 35.05 crore from Rs 50.94 crore.

Other comprehensive income, which is separate from profit or loss, was Rs 9.13 crore after tax for the half year. It included Rs 10.65 crore of fair-value changes on equity instruments designated at fair value through other comprehensive income, or FVOCI, and Rs 1.52 crore of related tax. Total comprehensive income was Rs 21.74 crore, against Rs 1.44 crore a year earlier.

What changed in Spacenet's balance sheet and cash flow?

Spacenet's total assets increased to Rs 231.71 crore at September 30, 2026 from Rs 186.22 crore at March 31, 2026. Non-current investments rose to Rs 111.32 crore from Rs 103.60 crore, while loans increased to Rs 37.50 crore from Rs 15.00 crore. Total equity increased to Rs 166.53 crore from Rs 144.57 crore.

The increase in assets coincided with higher borrowings. Non-current borrowings were Rs 46.90 crore at September 30, compared with Rs 23.57 crore at the March year-end, while current borrowings rose to Rs 1.61 crore from Rs 1.24 crore. Cash and cash equivalents plus other bank balances were Rs 2.76 crore, against Rs 1.68 crore at March 31.

Operating activities used Rs 14.75 crore in the 2026 half year, compared with an inflow of Rs 3.39 crore a year earlier. The reconciliation included a Rs 10.01 crore increase in financial assets, a Rs 3.38 crore increase in other assets and a Rs 3.83 crore decrease in trade payables. Financing activities generated Rs 20.95 crore, including Rs 23.71 crore of borrowing proceeds, partly offset by Rs 2.25 crore of interest paid and Rs 56.77 lakh of dividend paid.

Conclusion

Spacenet's September-quarter result combined a year-on-year rise in operating revenue with a sharp sequential fall in reported profit. The reduction in other income to Rs 1.18 crore from Rs 16.62 crore in June explains the movement from Rs 12.41 crore of quarterly profit to Rs 19.97 lakh, while first-half earnings included Rs 15.74 crore of investment-sale profit.

The next disclosed matter to watch is shareholder approval of Krishna Veni Ambala's appointment as an independent director through a postal-ballot special resolution. Her appointment began on November 13, 2026 and is proposed as a first five-year term ending November 12, 2031, subject to member approval and statutory requirements.