Value 360 posts Rs 85.69 lakh half-year loss after write-off

Value 360 Communications Limited reported a consolidated loss of Rs 85.69 lakh for the half year ended September 30, 2026, after writing off Rs 5.769 crore of long-outstanding trade receivables considered unrecoverable. Revenue from operations nevertheless rose to Rs 53.4847 crore from Rs 33.1216 crore in the half year ended September 30, 2025.

Why did Value 360 report a loss for September 2026?

Value 360 reported the Rs 85.69 lakh consolidated loss primarily because of bad debts recognised during the half year ended September 30, 2026. The statutory auditor’s emphasis-of-matter paragraph cited Rs 5.5767 crore of bad debts at the parent company as the primary reason for the loss, while the detailed results note put the Group’s receivables write-off at Rs 5.769 crore.

Before tax, Value 360 recorded a loss of Rs 1.1841 crore, compared with profit before tax of Rs 7.3162 crore in the half year ended September 30, 2025, and Rs 6.7554 crore in the half year ended March 31, 2026. The latest period included a tax credit of Rs 32.72 lakh, versus tax expense of Rs 2.2864 crore a year earlier, which reduced the post-tax loss relative to the pre-tax result.

The loss attributable to the parent was Rs 97.12 lakh, while minority interest was attributed profit of Rs 11.43 lakh in the September 2026 half year. Basic and diluted loss per share were each Rs 1.26, compared with earnings per share of Rs 4.03 in the September 2025 half year; Value 360 states that half-year earnings per share are not annualised.

How did Value 360 revenue and costs change?

Value 360’s revenue from operations increased by Rs 20.3631 crore from the September 2025 half year to Rs 53.4847 crore in the latest half year. Total income, including Rs 39.17 lakh of other income, reached Rs 53.8764 crore, compared with Rs 33.3504 crore a year earlier and Rs 36.0416 crore in the preceding half year.

Costs increased faster than revenue in the year-on-year comparison. Cost of service rose to Rs 17.8561 crore from Rs 3.0239 crore, employee-benefit expense reached Rs 18.1138 crore from Rs 15.2774 crore, and other expenses increased to Rs 16.7909 crore from Rs 4.8459 crore. Finance costs fell to Rs 1.7363 crore from Rs 2.3674 crore a year earlier, but exceeded Rs 1.5757 crore in the half year ended March 31, 2026.

The latest total expenses of Rs 55.0605 crore exceeded total income of Rs 53.8764 crore, whereas income exceeded expenses by Rs 7.3162 crore before tax in the September 2025 half year. Value 360 reports a single primary business segment, so the filing does not provide a revenue or profit split by operating business line.

What does Value 360 disclose about the receivables write-off?

Value 360 says it conducted a comprehensive review of long-outstanding trade receivables, particularly balances outstanding for more than three years, during the half year ended September 30, 2026. The assessment resulted in a Rs 5.769 crore write-off, comprising Rs 5.5767 crore at Value 360 and Rs 19.23 lakh at subsidiary Popkorn PR Plus Communication Private Limited.

The Group recognised the write-off as an expense in its consolidated statement of profit and loss because it considered the balances no longer recoverable. Value 360 and its subsidiaries will continue seeking recovery from the relevant clients, and any subsequent collection will be recognised as consolidated income in the period of recovery.

Reported trade receivables were Rs 31.0872 crore at September 30, 2026, compared with Rs 30.6876 crore at March 31, 2026. The disclosed trade-receivables turnover ratio was 1.73 at September 30, 2026, versus 2.83 at March 31, 2026, based on turnover of Rs 53.4847 crore and average receivables of Rs 30.8874 crore for the reported half year.

How is Value 360 using its IPO proceeds?

Value 360 completed an initial public offering, or IPO, during the period, issuing 38.292 lakh fresh equity shares at Rs 98 each for proceeds of Rs 37.5262 crore. Its shares were listed on the NSE Emerge platform on May 11, 2026, and the offer also included an offer for sale of 4.248 lakh shares by existing shareholders.

Of the IPO allocation, Value 360 had used Rs 10.6189 crore of Rs 12.706 crore earmarked for working capital by September 30, 2026, leaving Rs 2.0871 crore pending. It had used Rs 1.6136 crore of Rs 4.65 crore intended for infrastructure and technology expenditure, leaving Rs 3.0364 crore for that object.

Value 360 used the full Rs 4.50 crore allocated for repayment or prepayment of borrowings. Management said it closed unsecured loans carrying higher interest rates rather than prepaying a loan against property with a relatively lower rate. For the disclosed investment in influencer-marketing platform ClanConnect and an ownership expansion for a potential acquisition, Rs 2 crore of Rs 7 crore had been used, leaving Rs 5 crore; Rs 3.0412 crore allocated for general corporate purposes was unused.

Conclusion

Value 360’s September 2026 half-year results combine revenue of Rs 53.4847 crore with a Rs 5.769 crore receivables clean-up that moved the Group from a Rs 5.0298 crore profit in the September 2025 half year to an Rs 85.69 lakh loss. The parent accounted for Rs 5.5767 crore of the receivables written off, while Popkorn PR Plus Communication Private Limited accounted for Rs 19.23 lakh.

The next disclosed matters to watch are recoveries from written-off client balances, which Value 360 says would be recognised as income when received, and use of the Rs 2.0871 crore working-capital balance and Rs 3.0364 crore capital-expenditure balance pending at September 30, 2026. The company also had Rs 5 crore pending from the Rs 7 crore ClanConnect allocation for its stated investment and potential acquisition plan.