Advance Multitech reports Q1FY27 profit of ₹427.89 lakh on other income
Advance Multitech Limited posted a standalone net profit of ₹427.89 lakh for Q1FY27, reversing a loss of ₹42.05 lakh in the previous year. The gain was entirely due to other income of ₹486.72 lakh, as operational revenue remained nil. The company also disclosed the resignation of its statutory auditors, M/s Suresh R Shah & Associates, citing commercial viability concerns.
*this image is generated using AI for illustrative purposes only.
Advance Multitech Limited reported a standalone net profit of ₹427.89 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a sharp turnaround from the net loss of ₹42.05 lakh in the same period last year. The profitability was entirely driven by non-operating revenues, with other income contributing ₹486.72 lakh to the bottom line, while revenue from operations remained at zero. This divergence highlights that the financial recovery is not reflective of core trading activity but rather stems from significant non-recurring or other income components, alongside a reduction in total expenses to ₹20.53 lakh from ₹47.56 lakh year-on-year.
The Board of Directors approved the unaudited standalone financial results on August 11, 2026, during a meeting held at the company’s registered office in Ahmedabad. The results were reviewed in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statement of results has been prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and reviewed by the Audit Committee before board approval.
Financial Performance Overview
The company’s total income for Q1FY27 amounted to ₹486.72 lakh, compared to ₹5.52 lakh in Q1FY26. This increase was attributable to other income, which rose from zero to ₹486.72 lakh year-on-year. Revenue from operations remained flat at zero for both periods. Total expenses decreased significantly, driven by lower other expenses and cost of materials consumed.
| Particulars | Q1FY27 (₹ lakh) | Q1FY26 (₹ lakh) | Change |
|---|---|---|---|
| Revenue From Operations | 0.00 | 5.52 | -100% |
| Other Income | 486.72 | 0.00 | N/A |
| Total Income | 486.72 | 5.52 | +8,698% |
| Total Expenses | 20.53 | 47.56 | -57% |
| Profit Before Tax | 466.19 | (42.05) | Turnaround |
| Net Profit After Tax | 427.89 | (42.05) | Turnaround |
| Basic EPS (₹) | 10.62 | (1.04) | Turnaround |
Tax expense for the quarter was ₹38.30 lakh, comprising current tax provision. In the prior year quarter, there was no current tax provision, but earlier year short provisions and deferred tax adjustments resulted in a net tax benefit. Earnings per share (basic and diluted) improved to ₹10.62 from a loss of ₹1.04 per share in Q1FY26.
Statutory Auditor Resignation
In a separate disclosure pursuant to Regulation 30 of the SEBI LODR Regulations, M/s Suresh R Shah & Associates, Chartered Accountants, tendered their resignation as Statutory Auditors effective August 11, 2026. The firm cited that the remuneration payable was not commercially viable relative to the scope of work, effort, and professional resources required for the audit engagement.
M/s Suresh R Shah & Associates had been appointed as statutory auditors on May 22, 2018, with their term scheduled to expire on March 31, 2027. Partner Mrugen K Shah confirmed that there were no other material reasons for the resignation and no concerns regarding management-imposed limitations or lack of information. The resignation was disclosed in accordance with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
What the Numbers Show
The most striking aspect of Advance Multitech’s Q1FY27 results is the complete decoupling of profitability from operational revenue. With zero revenue from operations, the entire profit margin is derived from other income, suggesting that the reported net profit is not reflective of core business trading activities. While the reduction in total expenses contributed positively, the primary driver of the turnaround is the substantial one-time or non-recurring nature of the other income component. Investors should note that this profit surge does not indicate a recovery in operational sales, which remain dormant compared to the ₹5.52 lakh recorded in the prior year quarter.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE875S01019/6c07a4d5-4f46-46ac-a646-56972b59db61.pdf
Historical Stock Returns for Advance Multitech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
What specific nature does the ₹486.72 lakh 'other income' comprise, and is there any indication of its recurrence in future quarters?
How will the resignation of the statutory auditor due to non-viable remuneration impact the timeline and cost of appointing a new audit firm for FY27?
Given the complete absence of operational revenue, what strategic steps is management taking to revive core trading activities or pivot the business model?
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