Vdeal System September-half profit falls 80% to Rs 25.10 lakh

Vdeal System Limited reported net profit of Rs 25.10 lakh for the half year ended September 30, 2026, down from Rs 1.28 crore a year earlier, as finance cost rose to Rs 1.49 crore from Rs 62.11 lakh and revenue from operations declined to Rs 15.22 crore.

Why did Vdeal System's September-half profit fall?

Vdeal System's profit fell because its income declined while finance cost, employee costs, depreciation and other expenses increased. Revenue from operations was Rs 15.22 crore in the half year ended September 30, 2026, compared with Rs 16.76 crore in the corresponding half year ended September 30, 2025. Total income, including other income, declined to Rs 15.32 crore from Rs 16.89 crore.

Finance cost was the largest adverse movement disclosed in the profit and loss statement, rising by Rs 86.52 lakh to Rs 1.49 crore from Rs 62.11 lakh. Depreciation and amortisation expense increased to Rs 30.37 lakh from Rs 13.34 lakh, while employee benefits expense rose to Rs 2.03 crore from Rs 1.71 crore. These increases came despite lower revenue in the September 2026 half.

Total expenses declined to Rs 14.97 crore from Rs 15.17 crore, but the reduction was smaller than the fall in total income. Consequently, profit before tax dropped to Rs 35.09 lakh from Rs 1.71 crore. Tax expense declined to Rs 9.99 lakh from Rs 43.25 lakh, yet net profit still fell to Rs 25.10 lakh from Rs 1.28 crore.

How did Vdeal System's costs change from last year?

Vdeal System's raw-material consumption declined to Rs 10.89 crore from Rs 12.20 crore, broadly moving with the lower revenue reported in the September half. The company also recorded a Rs 1.28 crore reduction through changes in inventories of finished goods, work-in-progress and stock-in-trade, compared with a Rs 55.86 lakh reduction in the previous corresponding half.

Other costs moved higher. Employee benefits expense increased by Rs 31.20 lakh, depreciation and amortisation rose by Rs 17.03 lakh, and other expenses increased by Rs 47.89 lakh to Rs 1.54 crore. Together with the Rs 86.52 lakh increase in finance cost, these movements reduced profit before tax to Rs 35.09 lakh in the latest half.

Vdeal System reported only one business segment, the Electrical Panel Segment, and therefore did not provide a revenue or profit split by operating division. The company said segment reporting was not applicable. Its filing also states that, as an NSE SME Platform-listed company, it is exempt from the applicability of Indian Accounting Standards under the cited rules.

How did the September 2026 half compare with March 2026?

Vdeal System reported lower revenue and profit in the September 2026 half than in the half ended March 31, 2026. Revenue from operations was Rs 15.22 crore in the latest half against Rs 28.35 crore in the March 2026 half, while net profit was Rs 25.10 lakh against Rs 2.88 crore.

Profit before tax was Rs 35.09 lakh for the half ended September 30, 2026, compared with Rs 4.11 crore for the half ended March 31, 2026. Finance cost increased to Rs 1.49 crore from Rs 98.21 lakh over those two periods. The company describes the March 2026 half-year figures as balancing figures derived from audited full-year figures and year-to-date results.

The comparison does not establish the reason for the sequential change because Vdeal System gave no management commentary on demand, pricing, project activity or the drivers of finance cost. Other income was Rs 9.89 lakh in the September half, compared with Rs 5.12 lakh in the March half, while total expenses were Rs 14.97 crore against Rs 24.29 crore.

What changed in Vdeal System's balance sheet?

Vdeal System's total assets increased to Rs 65.38 crore at September 30, 2026, from Rs 64.10 crore at March 31, 2026. Non-current assets rose to Rs 11.92 crore from Rs 5.22 crore, while current assets declined to Rs 53.46 crore from Rs 58.87 crore, changing the composition of the balance sheet.

Tangible assets rose to Rs 10.83 crore from Rs 4.23 crore, and intangible assets increased to Rs 80.87 lakh from Rs 27.97 lakh. The cash-flow statement records fixed-asset purchases of Rs 7.45 crore during the half year ended September 30, 2026, compared with Rs 1.17 crore for the year ended March 31, 2026.

Within current assets, trade receivables declined to Rs 16.22 crore from Rs 22.35 crore, while inventories increased to Rs 31.07 crore from Rs 29.79 crore. Cash and bank balances rose to Rs 92.11 lakh from Rs 84.92 lakh, and short-term loans and advances declined to Rs 5.25 crore from Rs 5.88 crore.

How did Vdeal System fund investment and working capital?

Vdeal System funded part of its asset expansion through higher long-term borrowings, which rose to Rs 6.49 crore at September 30, 2026, from Rs 4.30 crore at March 31, 2026. Its cash-flow statement reports proceeds from long-term borrowings of Rs 2.19 crore during the September half. Short-term borrowings moved lower to Rs 14.50 crore from Rs 16.13 crore.

Net cash flow from operating activities was Rs 7.91 crore for the half year ended September 30, 2026, compared with cash used in operations of Rs 6.37 crore for the year ended March 31, 2026. The September-half operating cash figure included a Rs 6.13 crore decrease in trade receivables and a Rs 3.11 crore increase in other current liabilities, alongside a Rs 1.28 crore increase in inventories.

Investing activities used Rs 6.92 crore, principally because fixed-asset purchases were Rs 7.45 crore. Financing activities used Rs 93.33 lakh after interest paid of Rs 1.49 crore and a Rs 1.63 crore reduction in short-term borrowings. Net cash increased by Rs 7.20 lakh in the half, leaving cash and cash equivalents of Rs 92.11 lakh at September 30, 2026.

Conclusion

Vdeal System's September-half result combined lower revenue of Rs 15.22 crore with higher finance cost of Rs 1.49 crore, bringing net profit down to Rs 25.10 lakh from Rs 1.28 crore in the prior-year half. The balance sheet also shows Rs 7.45 crore of fixed-asset purchases, a rise in tangible assets to Rs 10.83 crore and higher long-term borrowings of Rs 6.49 crore.

What to watch next is how the unresolved pressure from finance cost, which increased by Rs 86.52 lakh year on year, develops alongside the larger fixed-asset base. Vdeal System disclosed no earnings target, project timetable or operating plan in this filing; its board approved the unaudited standalone results on November 13, 2026, and the auditor issued an unmodified limited-review conclusion.