Q2 net profit rises 33%; review qualified and H1 operating cash flow negative

Qualified OpinionPat Growth 25pctEbitda Margin ExpansionRelated Party TransactionsNegative Operating CashflowResults View source PDF Explain this filing

ADSL · price

Loading chart…

▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-3.2%Reaction day

₹173.00

prior close

₹173.80

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used-0.4%-2.9% vs market

IT Enabled Services peers, median of 69sector-0.8%-2.5% vs sector

On the reaction day the stock moved 2.9 pts less than Nifty Microcap 250 and 2.5 pts less than its IT Enabled Services peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-0.4

10m

-1.1

15m

-1.6

30m

-2.0

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-3.2-0.4-2.9-0.8-2.5

Next day

-2.3-0.6-1.7-1.0-1.3

-0.0+0.3-0.3-0.6+0.6

-1.1+0.2-1.3-0.9-0.2

-1.4+0.1-1.5-0.8-0.6

-1.4+0.7-2.2-1.2-0.2

-3.4-0.3-3.1-2.5-1.0

15d

-0.9-2.0+1.2-4.7+3.8

-10.3-5.7-4.6-8.0-2.3

-25.0-7.8-17.2-10.7-14.4

-24.6-4.6-19.9-12.3-12.2

UpDownMarket · Nifty Microcap 250Sector · IT Enabled Services peers, median of 69Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

Q2 FY26 consolidated revenue was Rs234 crore, up 15% year on year; EBITDA was Rs28 crore, up 23%; and net profit was Rs15 crore, up 33%. H1 revenue rose 18% to Rs453 crore and net profit rose 36% to Rs30 crore. The auditor qualified its review, citing Rs115.53 crore of interest-free subsidiary loans, unverified assets and inventory, and aged receivables and unbilled revenue. H1 operating cash flow was negative Rs324.2 crore.

Likely market impact

Revenue and profit growth is positive, but the qualified review and cash outflow raise asset quality and governance risks that may weigh on the stock.