Steelman Telecom H1 profit rises 5% despite revenue fall

Steelman Telecom Limited reported standalone profit after tax of Rs 5.20 crore for the half year ended 30 September 2026, up 5.2% from Rs 4.95 crore a year earlier, despite revenue from operations falling 5.0% to Rs 91.94 crore. Lower employee, finance and depreciation expenses reduced total costs faster than income declined.

Why did Steelman Telecom's H1 profit increase?

Steelman Telecom increased standalone profit after tax by Rs 25.69 lakh year on year to Rs 5.20 crore, while profit before tax rose 7.5% to Rs 7.10 crore from Rs 6.61 crore. Total income from operations fell 3.6% to Rs 94.77 crore from Rs 98.32 crore, but total expenses declined 4.4% to Rs 87.67 crore from Rs 91.71 crore.

The reported cost movements explain why profit rose despite lower income. Employee benefits expense decreased by Rs 2.91 crore to Rs 44.01 crore, depreciation and amortisation fell by Rs 1.29 crore to Rs 2.83 crore, and finance costs decreased by Rs 37.95 lakh to Rs 2.37 crore. These reductions exceeded a Rs 1.03 crore increase in other expenses and a Rs 5.38 lakh rise in cost of operations.

Which Steelman Telecom segment caused the revenue decline?

Steelman Telecom's car-rental segment accounted for most of the year-on-year revenue reduction because it recorded no revenue in the six months ended 30 September 2026, against Rs 4.74 crore in the corresponding prior-year period. Telecom revenue increased 0.4% to Rs 90.59 crore from Rs 90.19 crore, while engineering, procurement and construction, or EPC, revenue declined 27.7% to Rs 1.35 crore from Rs 1.86 crore.

Telecom was also the principal contributor to the increase in reported segment result. Telecom segment profit before tax and interest rose 32.3% to Rs 12.77 crore from Rs 9.65 crore. EPC segment result declined to Rs 24,000 from Rs 36.48 lakh, while the car-rental segment recorded no result against Rs 20.79 lakh a year earlier; unallocated costs increased to Rs 5.67 crore from Rs 3.61 crore.

How did Steelman Telecom perform against the preceding half year?

Steelman Telecom's profit after tax was 23.0% above Rs 4.23 crore reported for the six months ended 31 March 2026, while profit before tax increased 25.1% from Rs 5.68 crore. Revenue from operations increased 1.3% from Rs 90.79 crore, and total income from operations rose 2.3% from Rs 92.68 crore.

The sequential cost pattern was mixed. Cost of operations rose 9.6% from Rs 32.71 crore to Rs 35.84 crore, while employee benefits expense declined 1.4% from Rs 44.63 crore to Rs 44.01 crore. Depreciation and amortisation fell 34.4% from Rs 4.31 crore, finance costs decreased 4.9% from Rs 2.49 crore, and other income increased 50.6% to Rs 2.83 crore.

Steelman Telecom reported basic and diluted earnings per share, or EPS, of Rs 5.38 for the half year ended 30 September 2026, compared with Rs 5.11 a year earlier and Rs 4.37 in the preceding six months. The company states that EPS is not annualised, and its paid-up equity share capital remained Rs 9.68 crore across the three reported half-year comparison points.

What changed in Steelman Telecom's balance sheet and cash flow?

Steelman Telecom's standalone balance-sheet total increased to Rs 167.47 crore at 30 September 2026 from Rs 153.22 crore at 31 March 2026. Reserves and surplus rose to Rs 65.02 crore from Rs 59.13 crore, while long-term borrowings increased to Rs 22.14 crore from Rs 16.40 crore. Short-term borrowings, however, decreased by Rs 51.25 lakh to Rs 41.85 crore.

Trade receivables rose to Rs 30.79 crore from Rs 26.87 crore over the six-month period, and cash and cash equivalents increased to Rs 4.05 crore from Rs 22.44 lakh. The cash-flow statement reports net cash generated from operating activities of Rs 23.93 lakh, after Rs 3.92 crore used in trade receivables, Rs 2.17 crore used in short-term loans and advances, and Rs 5.50 crore used in other current assets.

The filing reports net cash from financing activities of Rs 2.86 crore for the half year, including a Rs 5.74 crore movement in long-term borrowings and a Rs 51.24 lakh reduction in short-term borrowings, after Rs 2.37 crore of finance cost. It also reports net cash from investing activities of Rs 72.69 lakh, including Rs 2.04 crore of interest income and Rs 1.21 crore spent on property, plant, equipment and intangible assets, resulting in a Rs 3.82 crore increase in cash and cash equivalents.

What did the limited review say about Steelman Telecom's results?

Steelman Telecom's standalone results for the half year ended 30 September 2026 are unaudited and were subject to a limited review by Jay Gupta & Associates dated 14 November 2026. The reviewer stated that nothing had come to its attention indicating that the statement failed to make disclosures required under Regulation 33 of the Securities and Exchange Board of India listing regulations or contained a material misstatement.

The review report states that a limited review provides moderate assurance and is less extensive than an audit, so it does not express an audit opinion. Steelman Telecom's filing also says balances payable and receivable remain subject to ledger balance confirmation, while its board reviewed and approved the unaudited standalone and consolidated results on 14 November 2026.

Conclusion

Steelman Telecom's standalone half-year result combined a 5.0% fall in revenue from operations with a 5.2% rise in profit after tax. Telecom revenue and segment profit increased, but the absence of prior-year car-rental revenue and lower EPC revenue reduced overall operating revenue; lower employee, finance and depreciation expenses reduced total expenses by 4.4%.

The next reported period will indicate whether telecom revenue can extend beyond the Rs 90.59 crore recorded for the half year ended 30 September 2026 and whether EPC or car-rental activity resumes. Investors can also monitor trade receivables, which increased to Rs 30.79 crore, and the disclosed need for ledger confirmation of payable and receivable balances.