Steelman Telecom returns to Rs 5.22 crore H1 consolidated profit

Steelman Telecom Limited reported consolidated profit after tax of Rs 5.22 crore for the half year ended 30 September 2026, reversing a Rs 8.97 crore loss a year earlier. Steelman Telecom’s cash-flow statement also recorded a Rs 35.08 crore adjustment for reversal of subsidiary after EC Wheels India Private Limited became an associate on 25 September 2026.

How did Steelman Telecom’s consolidated result change in H1?

Steelman Telecom returned to consolidated profit of Rs 5.22 crore in the six months ended 30 September 2026, compared with a Rs 8.97 crore loss in the corresponding 2025 half. Profit before tax was Rs 7.11 crore, against a Rs 10.36 crore loss, while total comprehensive income was also Rs 5.22 crore.

The turnaround came despite lower income. Total income from operations declined to Rs 94.99 crore from Rs 117.40 crore and revenue from operations fell to Rs 92.15 crore from Rs 116.82 crore. Total expenses fell more sharply to Rs 87.87 crore from Rs 127.76 crore, resulting in the reported pre-tax profit.

Tax expense in the latest half was Rs 1.90 crore, comprising Rs 1.84 crore of current tax and Rs 5.57 lakh of deferred tax. In the prior-year half, Steelman Telecom recorded Rs 2.15 crore of current tax and a deferred-tax credit of Rs 3.54 crore. Basic and diluted earnings per share, which were not annualised, were Rs 5.39.

Why did EC Wheels become a Steelman Telecom associate?

EC Wheels became an associate of Steelman Telecom on 25 September 2026 after previously being considered a subsidiary, according to the limited review report. The report records Steelman Telecom’s holding in EC Wheels at 49.47% and identifies Steelman Installation Services PLC in Ethiopia as the group’s wholly owned foreign subsidiary.

The filing does not disclose the transaction terms, consideration or the corporate action that resulted in the change. It states that EC Wheels ceased to be a subsidiary from 25 September 2026 and became an associate, changing the group structure during the reported six-month period.

EC Wheels’ management-prepared interim information for 1 April 2026 to 30 September 2026 showed Rs 37.03 crore of total assets, Rs 22.07 crore of revenue and a Rs 4.67 crore loss after tax. The reviewer said it had not reviewed this interim information and relied on management reports for the relevant disclosures.

What does the subsidiary-reversal adjustment mean for cash flow?

Steelman Telecom’s consolidated operating cash-flow reconciliation included a Rs 35.08 crore adjustment for reversal of subsidiary in the half year ended 30 September 2026. It was the largest listed adjustment between the Rs 7.11 crore pre-tax profit and Rs 45.36 crore of operating profit before working-capital changes.

The adjustment did not result in positive operating cash flow. Steelman Telecom reported a Rs 38.15 crore increase in short-term loans and advances, a Rs 7.63 crore increase in trade receivables and a Rs 3.85 crore decrease in trade payables. After Rs 68.90 lakh of income tax paid, net cash used in operating activities was Rs 7.63 crore.

Net cash from investing activities was Rs 22.03 crore, while net cash used in financing activities was Rs 11.04 crore. The financing section recorded reductions of Rs 7.92 crore in short-term borrowings and Rs 6.78 crore in long-term borrowings, alongside Rs 2.37 crore of finance cost and a Rs 6.03 crore minority-interest movement.

Cash and cash equivalents rose to Rs 4.08 crore at 30 September 2026 from Rs 71.59 lakh at 31 March 2026, a reported increase of Rs 3.36 crore. The operating-cash outflow and reversal-of-subsidiary adjustment mean the cash movement reflects both working-capital changes and the altered consolidation perimeter.

Which segments changed most in the consolidated half-year results?

Steelman Telecom’s Telecom segment generated Rs 90.81 crore of revenue in the latest half, up from Rs 89.45 crore a year earlier, while its segment result increased to Rs 12.78 crore from Rs 9.54 crore. The filing presents segment results as profit or loss before tax and interest, subject to its stated convention.

Cab Hiring had no revenue or segment-result figure in the 30 September 2026 column, while the prior-year half recorded Rs 19.83 crore of revenue and a Rs 16.85 crore segment loss. Car Rental also had no latest-half figure, against Rs 4.74 crore of revenue and a Rs 20.79 lakh segment result in the prior-year half.

Engineering, procurement and construction, or EPC, revenue declined to Rs 1.35 crore from Rs 1.86 crore, and its segment result fell to Rs 24,000 from Rs 36.48 lakh. Unallocated income rose to Rs 2.83 crore from Rs 1.52 crore, while the unallocated loss widened to Rs 5.67 crore from Rs 3.61 crore.

How did Steelman Telecom’s consolidated balance sheet move?

Steelman Telecom reported consolidated assets of Rs 149.12 crore at 30 September 2026, compared with Rs 134.87 crore at 31 March 2026. Current assets increased to Rs 129.34 crore from Rs 78.48 crore, led by short-term loans and advances of Rs 40.87 crore, compared with Rs 2.71 crore at the March year-end.

Trade receivables rose to Rs 31.05 crore from Rs 23.42 crore and cash and cash equivalents increased to Rs 4.08 crore from Rs 71.59 lakh. Non-current assets fell to Rs 19.78 crore from Rs 56.39 crore, including tangible assets of Rs 18.26 crore against Rs 36.86 crore.

Total equity was Rs 56.07 crore at 30 September 2026, up from Rs 28.64 crore at 31 March 2026, as other equity increased to Rs 46.40 crore from Rs 18.97 crore. Current liabilities declined to Rs 68.22 crore from Rs 80.67 crore, while long-term borrowings fell to Rs 22.14 crore from Rs 28.92 crore.

Conclusion

Steelman Telecom’s Rs 5.22 crore consolidated H1 profit reversed the Rs 8.97 crore loss recorded in the comparable 2025 half, although total income fell by Rs 22.41 crore. Lower expenses, a higher Telecom segment result and the absence of the prior-year Cab Hiring loss coincided with the group’s change in consolidation structure.

The filing leaves the terms behind EC Wheels’ reclassification undisclosed and states that payable and receivable balances are subject to ledger-balance confirmation. The next results should clarify the ongoing accounting effect of the 49.47% associate holding and movements in the Rs 40.87 crore short-term loans and advances balance.