Syschem revenue rises 10% but September profit stays flat

Syschem (India) Limited reported revenue from operations of Rs 129.7928 crore for the quarter ended September 30, 2026, against Rs 117.9236 crore a year earlier. Profit after tax was Rs 1.9109 crore, only Rs 1.25 lakh above the prior-year figure, although Syschem returned to profit from a Rs 1.668 crore loss in the preceding June quarter.

Why did Syschem's September-quarter profit stay nearly flat?

Syschem's profit stayed nearly flat because total expenses increased by more than revenue in the quarter ended September 30, 2026. Revenue from operations rose Rs 11.8692 crore year on year to Rs 129.7928 crore, while total expenses rose Rs 12.2763 crore to Rs 127.6632 crore. Profit before tax consequently declined to Rs 2.1296 crore from Rs 2.5472 crore.

Profit after tax was Rs 1.9109 crore, compared with Rs 1.8984 crore for the quarter ended September 30, 2025. The difference was Rs 1.25 lakh despite the lower pre-tax result because the reported September 2026 tax charge was Rs 21.87 lakh, comprising Rs 17.65 lakh of current tax, Rs 21.87 lakh of deferred tax and a Rs 17.65 lakh minimum alternate tax credit. Syschem reported no exceptional items in either quarter.

Which costs changed in Syschem's September quarter?

Syschem's cost of materials consumed increased to Rs 95.8883 crore in the September 2026 quarter from Rs 79.9081 crore a year earlier. Goods and services tax expense also increased to Rs 16.4703 crore from Rs 14.3206 crore. Together, those two expenses increased Rs 18.1299 crore, exceeding the Rs 11.8692 crore gain in revenue from operations.

The inventory-change line, covering finished goods, work in progress and stock in trade, was Rs 6.7618 crore in September 2026, versus Rs 16.027 crore a year earlier. Employee benefits expense declined to Rs 2.0877 crore from Rs 2.2857 crore, but depreciation and amortisation increased to Rs 1.573 crore from Rs 75.67 lakh. Finance costs rose to Rs 73.81 lakh from Rs 0.97 lakh, while other expenses increased to Rs 4.144 crore from Rs 2.0791 crore.

How did Syschem's September quarter compare with June 2026?

Syschem returned to profit in the September 2026 quarter after a loss in the quarter ended June 30, 2026. Revenue from operations rose Rs 3.8447 crore sequentially to Rs 129.7928 crore. Profit before tax changed from a loss of Rs 1.4524 crore in June to profit of Rs 2.1296 crore in September, while profit after tax moved from a loss of Rs 1.668 crore to profit of Rs 1.9109 crore.

Total expenses edged up to Rs 127.6632 crore from Rs 127.447 crore over the two quarters. Materials cost fell to Rs 95.8883 crore from Rs 104.6367 crore, while the inventory-change line moved from a credit of Rs 6.7856 crore in June to an expense of Rs 6.7618 crore in September. Employee benefits expense fell from Rs 4.042 crore to Rs 2.0877 crore, and other expenses declined from Rs 5.7702 crore to Rs 4.144 crore.

What do Syschem's half-year results show?

Syschem's half-year results show revenue growth alongside a lower profit outcome than in the corresponding prior-year period. Revenue from operations for the half year ended September 30, 2026 was Rs 255.7409 crore, compared with Rs 244.6819 crore for the half year ended September 30, 2025. Profit before tax fell to Rs 67.72 lakh from Rs 4.2207 crore, and profit after tax fell to Rs 24.2878 lakh from Rs 3.5719 crore.

Materials cost for the six-month period rose to Rs 200.525 crore from Rs 181.9227 crore, while goods and services tax expense increased to Rs 33.2092 crore from Rs 31.7635 crore. Finance costs increased to Rs 1.2276 crore from Rs 4.88 lakh, and depreciation and amortisation rose to Rs 3.1282 crore from Rs 1.5134 crore. The inventory-change expense was Rs 97.62 lakh, compared with Rs 17.601 crore a year earlier.

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

Syschem's total assets were Rs 265.2996 crore at September 30, 2026, down from Rs 291.7445 crore at March 31, 2026. Inventories increased to Rs 83.8916 crore from Rs 58.2432 crore, while trade receivables declined to Rs 91.539 crore from Rs 144.4852 crore. Cash and cash equivalents on the balance sheet declined to Rs 1.6262 crore from Rs 8.1075 crore.

Syschem reported net cash used in operating activities of Rs 5.8473 crore for the half year ended September 30, 2026, compared with net cash generated from operating activities of Rs 13.2387 crore in the year-earlier half year. Purchases of property, plant and equipment and intangible assets were Rs 12.5244 crore, and net cash used in investing activities was Rs 15.6533 crore. Paid-up equity share capital was Rs 53.6155 crore at September 30, 2026, compared with Rs 49.013 crore at March 31, 2026.

Conclusion

Syschem increased September-quarter revenue by about 10% year on year, but expenses rose by a larger absolute amount and reduced profit before tax to Rs 2.1296 crore. Profit after tax therefore remained close to the prior-year level at Rs 1.9109 crore, while the sequential comparison shows a reversal from the Rs 1.668 crore loss reported in the June 2026 quarter.

The disclosed unresolved matter is whether higher inventories of Rs 83.8916 crore and lower cash and cash equivalents of Rs 1.6262 crore will accompany an improvement in operating cash generation after the Rs 5.8473 crore first-half outflow. The filing does not disclose a forward plan, target or scheduled event beyond the unaudited results approved by the board on October 27, 2026.