Systango H1 FY27 profit falls 10.9% as revenue declines

Systango Technologies Limited reported consolidated net profit of Rs 16.312 crore for the half year ended September 30, 2026, 10.9% below a year earlier, after revenue from operations fell 7.7% to Rs 42.0055 crore. Systango’s profit nevertheless exceeded the Rs 13.5739 crore reported for the immediately preceding March half.

How did Systango perform in H1 FY27?

Systango’s consolidated revenue from operations fell to Rs 42.0055 crore in the half year ended September 30, 2026, from Rs 45.4864 crore in the corresponding September 2025 half. The reduction of Rs 3.4809 crore equalled a 7.7% year-on-year decline. Total income, which includes other income, decreased to Rs 45.9061 crore from Rs 48.2921 crore, a fall of 4.9%.

Systango’s net profit after tax declined to Rs 16.312 crore from Rs 18.3028 crore in H1 FY26, a decrease of Rs 1.9908 crore. Profit before tax was Rs 19.2777 crore, compared with Rs 21.6063 crore a year earlier. Basic and diluted earnings per share were Rs 11.12, down from Rs 12.48 in the September 2025 half.

What changed in Systango’s costs and income mix?

Systango’s total expenses were almost unchanged year on year at Rs 26.6281 crore, versus Rs 26.6858 crore in the half year ended September 30, 2025. Employee benefits expense fell to Rs 18.8888 crore from Rs 19.411 crore, while cost of sales declined to Rs 0.6622 crore from Rs 2.1599 crore. The smaller reduction in total expenses than in operating revenue coincided with the decline in profit before tax.

Other income rose to Rs 3.9006 crore from Rs 2.8057 crore, partly offsetting the decline in revenue from operations. Depreciation and amortisation increased to Rs 0.3762 crore from Rs 0.1701 crore, while finance costs rose to Rs 0.0319 crore from Rs 0.0296 crore. Systango identifies software development services as its single reportable segment, so the filing does not provide separate revenue or profit data by product line or geography.

How did Systango compare with the previous half?

Systango’s net profit rose sequentially to Rs 16.312 crore in the half ended September 30, 2026, from Rs 13.5739 crore in the half ended March 31, 2026. That was an increase of Rs 2.7381 crore, or 20.2%. Basic and diluted earnings per share also increased to Rs 11.12 from Rs 9.25 over the two disclosed half-year periods.

Systango’s tax expense was Rs 2.9657 crore in the September 2026 half, compared with Rs 3.9976 crore in the preceding March half and Rs 3.3015 crore in the September 2025 half. The company states that the March 2026 half-year figures are balancing figures between the audited full-year results and previously published year-to-date figures. The sequential comparison therefore uses the half-year presentation disclosed in the filing.

What does Systango’s cash position show?

Systango ended September 30, 2026 with cash and cash equivalents of Rs 24.5964 crore, compared with Rs 15.7343 crore at the beginning of the financial year on April 1, 2026. The net increase was Rs 8.8621 crore for the six-month period. The cash-flow statement shows Rs 20.3523 crore in current bank accounts and Rs 4.2331 crore in short-term bank deposits at period end.

Systango also reported cash in hand of Rs 1.10 lakh as of September 30, 2026. The filing says fixed deposits with maturity beyond three months from the reporting date are excluded from cash and cash equivalents. It further says the consolidated cash-flow statement was prepared using the indirect method under Accounting Standard 3 on cash-flow statements.

What did Systango’s limited review disclose?

Systango’s statutory auditor, Anil Kamal Garg & Company, concluded that nothing had come to its attention to indicate that the September 2026 consolidated results contained a material misstatement or omitted required disclosures. The Board took the unaudited consolidated results on record on November 12, 2026. The auditor described its work as a limited review rather than an audit and did not express an audit opinion.

The auditor said it did not review certain subsidiary interim financial results included in the consolidated numbers. Those management-certified subsidiary results recorded total revenue of Rs 33.3196 crore and net profit after tax of Rs 1.6319 crore for the half year ended September 30, 2026. The auditor’s conclusion was not modified for this matter, and it also reviewed management’s conversion adjustments for some overseas subsidiaries’ financial information prepared under local accounting principles.

How is Systango’s group structure reflected in the filing?

Systango’s consolidated results cover the parent and its subsidiaries, which the auditor’s report lists as Systango Ltd., Systango INC, USA, and Systango Ltd., UK. The report also includes Systango Account Aggregator Services LLP, described as an entity substantially controlled by the parent. The September 2026 results were prepared under Accounting Standard 25 on interim financial reporting.

Systango’s consolidated statement classifies software development services as the group’s only reportable segment. Consequently, the Rs 42.0055 crore of revenue from operations in the September 2026 half cannot be separated from the supplied filing into Indian and overseas operations or into individual service categories. The limited-review report notes that management converted overseas subsidiary information to accounting principles generally accepted in India before consolidation.

Conclusion

Systango’s September 2026 half-year filing shows that lower operating revenue was accompanied by a larger percentage decline in consolidated net profit. Revenue from operations fell 7.7% year on year to Rs 42.0055 crore, while net profit fell 10.9% to Rs 16.312 crore. Expenses were broadly flat at Rs 26.6281 crore, and higher other income of Rs 3.9006 crore partly offset the revenue decline.

The next results will indicate whether Systango can build on the sequential increase from Rs 13.5739 crore of net profit in the March 2026 half to Rs 16.312 crore in the September 2026 half. Readers can also watch for subsequent disclosures on the group’s single software development services segment and on subsidiary financial information, including results that were management-certified for the limited review.