Vinsys profit attributable falls 28% despite revenue growth

Vinsys IT Services India Limited reported profit attributable to parent owners of Rs 6.337 crore for the half year ended 30 September 2026, down 28% from Rs 8.8411 crore a year earlier, despite total revenue increasing 16% to Rs 140.1891 crore. Delivery and employee costs rose faster than revenue, reducing profit before tax to Rs 6.7285 crore.

Why did Vinsys profit fall despite revenue growth?

Vinsys profit fell because total expenses increased by more than total revenue in the half year ended 30 September 2026. Total revenue increased by Rs 19.2173 crore from Rs 120.9718 crore in the half year ended 30 September 2025, while total expenses rose by Rs 22.1917 crore to Rs 133.4606 crore. Profit before tax consequently declined by Rs 2.9735 crore to Rs 6.7285 crore.

Cost of delivery of services was the largest source of the increase, rising by Rs 18.0316 crore to Rs 96.1824 crore. Employee benefit expenses increased by Rs 4.2185 crore to Rs 22.808 crore, while finance cost rose by Rs 0.3803 crore to Rs 1.9973 crore. Other expenses declined by Rs 0.9294 crore to Rs 9.5799 crore, but that reduction did not offset the higher delivery, employee, finance and depreciation costs.

Tax expense fell to Rs 0.3137 crore from Rs 0.8569 crore, partly limiting the decline after tax. Consolidated profit for the period was Rs 6.4148 crore, compared with Rs 8.8451 crore a year earlier. Minority interest received Rs 0.0778 crore, leaving Rs 6.337 crore for parent owners, while basic and diluted earnings per share declined to Rs 4.30 from Rs 6.02.

How did Vinsys perform across operating segments?

Vinsys reported an IT Services segment loss in the September 2026 half year, while Manpower Supply Services recorded higher revenue and segment profit. IT Services posted a segment loss of Rs 0.9732 crore, against a Rs 2.263 crore segment profit in the September 2025 half year. Its revenue was broadly unchanged at Rs 27.0036 crore, compared with Rs 27.2403 crore a year earlier.

Manpower Supply Services reported revenue of Rs 68.2942 crore, up from Rs 50.4429 crore in the corresponding prior-year half. Its segment result increased to Rs 1.2593 crore from Rs 0.7781 crore. The filing identifies two operating segments, Software IT Solution and Consulting Services and Manpower Supply Services, while the segment statement labels the first operating category IT Services.

The filing’s separate geographical disclosure for Outside India recorded revenue of Rs 61.1882 crore, up from Rs 46.6644 crore in the September 2025 half. Profit for the period in that geographical column declined to Rs 6.1346 crore from Rs 6.5731 crore. This geographical figure is a separate presentation from the operating segment disclosure and is not additive to the two operating segments.

Sequentially, IT Services changed from a Rs 7.0937 crore segment profit in the half year ended 31 March 2026 to a Rs 0.9732 crore loss in the September 2026 half. Manpower Supply Services segment profit also declined from Rs 4.4132 crore in the March 2026 half to Rs 1.2593 crore, even as its latest-half revenue was Rs 68.2942 crore versus Rs 60.6991 crore.

How did Vinsys balance sheet change by September 2026?

Vinsys total consolidated assets and liabilities rose to Rs 284.3231 crore at 30 September 2026 from Rs 243.0086 crore at 31 March 2026. Shareholders’ funds increased to Rs 172.9879 crore from Rs 161.3462 crore, including reserves and surplus of Rs 158.238 crore. Minority interest rose to Rs 0.7852 crore from Rs 0.7074 crore.

Current assets increased to Rs 199.6014 crore from Rs 167.3159 crore. Cash and cash equivalents rose to Rs 27.9433 crore from Rs 10.4672 crore, and short-term loans and advances increased to Rs 31.5548 crore from Rs 11.7191 crore. Trade receivables were broadly unchanged at Rs 89.7365 crore, compared with Rs 90.2516 crore at 31 March 2026.

The growth in current assets was accompanied by higher short-term funding. Short-term borrowings rose to Rs 45.0256 crore at 30 September 2026 from Rs 21.4216 crore at 31 March 2026, while long-term borrowings declined to Rs 28.0806 crore from Rs 30.4668 crore. Trade payables to creditors other than micro and small enterprises increased to Rs 13.911 crore from Rs 5.9981 crore.

What did Vinsys cash flow show for the half year?

Vinsys generated net cash from operating activities of Rs 3.2462 crore in the half year ended 30 September 2026, compared with net cash used in operating activities of Rs 7.479 crore in the prior-year half. Cash generated from operations was Rs 8.7731 crore, compared with a negative Rs 5.9865 crore a year earlier, before tax payments and prior-period items.

Working-capital movements included a Rs 7.9129 crore increase in trade payables and a Rs 3.3807 crore increase in other current liabilities. These inflows were partly offset by Rs 19.8357 crore used in short-term loans and advances. The cash-flow statement also recorded Rs 4.9021 crore of tax payment or adjustment and Rs 0.6248 crore of prior-period items.

Net cash used in investing activities was Rs 5.1402 crore, compared with Rs 7.9109 crore in the September 2025 half. Vinsys reported Rs 3.7063 crore of property, plant and equipment purchases and a Rs 4.4829 crore increase in goodwill during consolidation. Net cash from financing activities was Rs 19.3701 crore, including Rs 21.2178 crore of net borrowing proceeds.

What did the Vinsys limited review disclose?

Vinsys audit committee and board approved the unaudited consolidated results on 6 November 2026. The filing says the statutory auditors carried out a limited review and expressed an unmodified opinion on the results. The limited-review report states that nothing came to the reviewer’s attention to suggest that the consolidated statement omitted required disclosures or contained a material misstatement.

The consolidated results include 10 subsidiaries, including Vikvins Consultants Private Limited, Vinsys International Limited in Dubai, Vinsys Corporation in the United States and Omnibridge Solutions Private Limited. The auditor said subsidiary interim results included Rs 129.4824 crore of total revenue and Rs 7.3939 crore of net profit after tax for the half year ended 30 September 2026.

The report said Vikvins Consultants Private Limited was reviewed by the reporting auditor, while other India and United Arab Emirates entities were reviewed by other independent auditors. The United States entity was reviewed by management because, according to the filing, local law does not require an independent audit. Vinsys also reported two investor complaints as of 30 September 2026, both resolved.

Conclusion

Vinsys increased total revenue by 16% to Rs 140.1891 crore in the half year ended 30 September 2026, but expenses rose faster, led by delivery costs of Rs 96.1824 crore and employee benefits of Rs 22.808 crore. That cost movement reduced profit attributable to parent owners by 28% to Rs 6.337 crore, while IT Services moved to a Rs 0.9732 crore segment loss.

The filing does not disclose a management earnings target, operating plan or scheduled business milestone. The reported matters to watch in later disclosures are whether the IT Services loss changes, whether delivery costs remain elevated, and how short-term borrowings of Rs 45.0256 crore and short-term loans and advances of Rs 31.5548 crore develop.