Vertoz Q2 profit up 9.5% as finance cost more than doubles

Vertoz Limited reported consolidated profit of Rs 7.925 crore for the quarter ended 30 September 2026, up 9.5% year on year, as revenue from operations increased 16.1% to Rs 83.905 crore while finance cost rose 132.4% to Rs 3.8355 crore. Profit growth therefore trailed revenue growth during the quarter.

How did Vertoz perform in Q2 2026?

Vertoz increased revenue from operations to Rs 83.905 crore in the quarter ended 30 September 2026 from Rs 72.2622 crore a year earlier. Total income rose 12.5% to Rs 84.1067 crore, a slower increase than revenue because other income fell to Rs 20.17 lakh from Rs 2.5055 crore in the September 2025 quarter.

Profit before tax rose 30.4% to Rs 10.4559 crore from Rs 8.0162 crore. After a tax charge of Rs 2.5309 crore, comprising current tax of Rs 2.4265 crore and deferred tax of Rs 10.44 lakh, Vertoz reported profit for the period of Rs 7.925 crore, against Rs 7.2389 crore a year earlier.

Why did Vertoz's profit grow slower than revenue?

Vertoz's post-tax profit grew slower than revenue because the tax charge and several cost lines increased despite an 8.3% decline in direct service expense. Total expenses rose 10.3% to Rs 73.6508 crore in Q2 2026 from Rs 66.7515 crore, while the tax charge increased from Rs 77.73 lakh in the comparable quarter.

Direct service expense declined to Rs 47.9691 crore from Rs 52.2975 crore, but employment benefit cost rose 17.7% to Rs 8.0736 crore. Depreciation and amortisation increased 73.2% to Rs 5.6781 crore, while other expenses rose to Rs 8.0946 crore from Rs 2.6695 crore, changing the expense mix from the prior-year quarter.

Profit for the period was about 9.4% of revenue from operations in Q2 2026, compared with about 10.0% in Q2 2025, calculated from the reported consolidated figures. The filing does not provide segment-level revenue or profit detail because Vertoz says it does not have more than one reportable segment under Indian Accounting Standard 108.

How much did Vertoz's finance cost rise?

Vertoz's finance cost rose 132.4% year on year to Rs 3.8355 crore in Q2 2026 from Rs 1.6502 crore. It was also 79.6% above Rs 2.1356 crore in the quarter ended 30 June 2026, whereas revenue from operations increased 2.8% sequentially from Rs 81.6407 crore.

For the half year ended 30 September 2026, finance cost was Rs 5.971 crore, compared with Rs 2.1691 crore in the corresponding half year. Half-year revenue from operations rose 16.0% to Rs 165.5457 crore, while profit for the period increased 11.5% to Rs 15.2895 crore from Rs 13.713 crore.

What changed in Vertoz's balance sheet and cash position?

Vertoz's total assets were Rs 461.2013 crore on 30 September 2026, compared with Rs 420.7013 crore on 31 March 2026. Trade receivables increased to Rs 116.2531 crore from Rs 81.5952 crore, while other current assets rose to Rs 93.8184 crore from Rs 84.3933 crore over the same period.

Cash and cash equivalents declined to Rs 5.1934 crore on 30 September from Rs 8.4123 crore at 31 March. Current borrowings rose to Rs 45.7751 crore from Rs 31.2115 crore, while non-current borrowings reduced to Rs 49.5652 crore from Rs 50.2349 crore.

The half-year cash-flow statement reports net cash used in operating activities of Rs 3.092 crore. It records a Rs 34.6579 crore increase in trade receivables as a working-capital movement, and cash and cash equivalents declined by Rs 3.2189 crore during the six months ended 30 September 2026.

What does Vertoz disclose about consolidation and earnings attribution?

Vertoz's unaudited consolidated results cover the holding company, its foreign subsidiary operations and an associate, with the auditor's review report listing 49 subsidiaries. The filing identifies Perfomise Solutions Pvt Ltd as a 51% majority-owned subsidiary and Webimax LLC as an 80% majority-owned subsidiary.

Profit attributable to owners of the parent was Rs 6.9477 crore in Q2 2026, compared with Rs 6.7927 crore in Q2 2025. Profit attributable to non-controlling interests rose to Rs 97.73 lakh from Rs 44.62 lakh, while basic and diluted earnings per share were Rs 0.93, against Rs 0.85 a year earlier; the quarterly figures are not annualised.

The independent auditor reviewed the consolidated results under Standard on Review Engagements 2410 rather than conducting an audit. Its review conclusion stated that nothing had come to its attention to suggest the statement had failed to disclose required information or contained a material misstatement.

Conclusion

Vertoz delivered higher revenue, profit before tax and post-tax profit in Q2 2026, but its 9.5% profit increase was below the 16.1% revenue increase. Lower direct service expense supported earnings, while finance cost, depreciation, other expenses and the tax charge rose, shaping the difference between sales and profit growth.

The filing provides no forecast or target for the next quarter. The next results will show whether finance cost, which reached Rs 5.971 crore in the first half, changes alongside current borrowings of Rs 45.7751 crore, trade receivables of Rs 116.2531 crore and operating cash use of Rs 3.092 crore.