Wardwizard posts Rs 5.82 crore Q2 loss as revenue falls

Wardwizard Innovations & Mobility Limited reported a standalone net loss of Rs 5.82 crore for the quarter ended September 30, 2026, after a Rs 17.45 lakh profit a year earlier, as revenue from operations fell about 74% year on year to Rs 8.62 crore.

What did Wardwizard report for the September 2026 quarter?

Wardwizard reported a loss after tax of Rs 5.82 crore in the September 2026 quarter, compared with a profit after tax of Rs 17.45 lakh in the September 2025 quarter. Total income was Rs 8.64 crore, against Rs 34.51 crore a year earlier and Rs 61.77 crore in the preceding June 2026 quarter.

Revenue from operations was Rs 8.62 crore in the September quarter, down from Rs 33.43 crore in September 2025 and Rs 61.64 crore in June 2026. The year-on-year reduction was about 74%, while the sequential decline was about 86%, based on the standalone figures filed by Wardwizard.

Total expenses were Rs 10.04 crore, compared with Rs 34.41 crore a year earlier and Rs 61.68 crore in the June quarter. Wardwizard consequently reported a loss before tax of Rs 5.81 crore, against profits before tax of Rs 9.50 lakh in both the September 2025 and June 2026 quarters.

The unaudited standalone results were reviewed by the audit committee and approved by Wardwizard's board on November 7, 2026. Basic and diluted earnings per equity share from continuing operations were a loss of Rs 0.19 in the September 2026 quarter, compared with earnings of Rs 0.01 in September 2025.

What costs were reported in Wardwizard's loss-making quarter?

Wardwizard's expenses exceeded total income by Rs 1.41 crore in the September 2026 quarter before the reported tax outcome. Material consumption was Rs 5.85 crore, employee-benefit expense was Rs 1.48 crore, and depreciation and amortisation expense was Rs 1.16 crore.

Other expenses amounted to Rs 94.57 lakh during the quarter, while finance costs were Rs 32.90 lakh. Advertising and sales-promotion expense was Rs 12.10 lakh and legal and professional fees were Rs 11.51 lakh, according to the standalone statement.

The reduction in total expenses did not match the scale of the income decline. Expenses fell by Rs 24.37 crore from the September 2025 quarter, but total income fell by Rs 25.87 crore over the same period, moving Wardwizard from the prior-year profit to the reported loss.

Wardwizard disclosed one operating segment, Electric Mobility Vehicles, and said it conducts activities through a dealership network. The filing therefore does not provide a separate revenue, expense or profit breakdown by vehicle category, dealer geography or ancillary activity.

What do Wardwizard's half-year cash flow and receivables show?

Wardwizard reported net cash used in operating activities of Rs 8.01 crore for the half year ended September 30, 2026. The corresponding half-year cash-flow statement started with a loss before tax and exceptional items of Rs 5.30 crore, compared with a profit before tax of Rs 1.57 crore in the half year ended September 30, 2025.

Trade receivables stood at Rs 156.91 crore at September 30, 2026, compared with Rs 19.58 crore at March 31, 2026. The half-year cash-flow statement also recorded a Rs 31.47 crore cash outflow associated with trade receivables, while inventories declined to Rs 48.58 crore from Rs 55.38 crore.

Total current assets were Rs 314.06 crore at September 30, 2026, down from Rs 323.92 crore at March 31, 2026. Cash and cash equivalents shown in the balance sheet were Rs 3.44 crore, while the cash-flow statement reported year-end cash and cash equivalents of Rs 3.50 crore for the half-year presentation.

Trade payables were Rs 31.71 crore at September 30, 2026, compared with Rs 52.97 crore at March 31, 2026. Total equity was Rs 147.05 crore, down from Rs 152.35 crore at the March 2026 year-end, reflecting the standalone half-year loss and other comprehensive income recorded in the period.

What contingent matters did Wardwizard disclose?

Wardwizard classified a customs-duty matter as a contingent liability and made no provision in the September 2026 standalone accounts. A show-cause notice dated March 18, 2023 sought differential customs duty of Rs 12.3586901 crore, in addition to applicable interest and penalties, following an inquiry by the Directorate of Revenue Intelligence, Ahmedabad.

The adjudicating authority issued its order on February 2, 2026, and Wardwizard said it was communicated on February 16, 2026. Wardwizard filed an appeal before the appropriate appellate authority on April 28, 2026 and said, based on legal advice, that it was confident of a favourable outcome and did not expect a material financial outflow.

Wardwizard also disclosed an income-tax demand of Rs 7.58 crore received during the quarter. The company said it had appealed the demand and, based on the merits of the case, did not consider a provision necessary because it regarded the matter as contingent.

The independent auditor drew attention to both the customs contingency and the note on business conditions in its limited-review report dated November 7, 2026. The auditor said its conclusion was not modified and that nothing had come to its attention to indicate a material misstatement or inadequate required disclosure in the standalone results.

How is Wardwizard addressing supply constraints?

Wardwizard said supply constraints, largely attributable to global disruptions, had dampened market demand and adversely affected its electric-vehicle business and ancillary ecosystem. That disclosure accompanied the September 2026 quarter in which revenue from operations fell to Rs 8.62 crore from Rs 33.43 crore a year earlier.

Management said Wardwizard is diversifying its supplier base for critical components, renegotiating arrangements and arranging additional working-capital facilities. These are disclosed measures to address the supply situation, rather than a stated revenue, production-volume or profit target for a future quarter.

Wardwizard said it remained hopeful that business sentiment would improve and disruptions would reduce in the ensuing quarter, supported by favourable developments in the operating environment. This is management's expectation; the filing does not quantify the potential effect on revenue from operations, receivables or operating cash flow.

Wardwizard had no investor complaints pending at the beginning of the September 2026 quarter, received one complaint during the period and resolved it within the same quarter. The company also said prior-period figures were regrouped or reclassified where required to conform with the current presentation.

Conclusion

Wardwizard's September 2026 standalone result showed a sharp movement from a Rs 17.45 lakh profit to a Rs 5.82 crore loss as revenue from operations declined to Rs 8.62 crore. The half-year operating cash outflow of Rs 8.01 crore, alongside trade receivables of Rs 156.91 crore, adds working-capital context to the quarterly reversal.

The next disclosed items to watch are Wardwizard's supplier-diversification, renegotiation and additional working-capital initiatives, which management is pursuing to address critical-component constraints. Progress in the appeal over the Rs 12.3586901 crore customs-duty claim and the appeal against the Rs 7.58 crore income-tax demand also remains unresolved in the filing.