Bits Limited Q1 Results: Net profit rises 122% YoY to ₹16.34 lakh
Bits Limited delivered robust Q1FY27 results with standalone net profit jumping 122% YoY to ₹16.34 lakh on the back of 41% revenue growth. Consolidated profits rose 95% YoY to ₹17.64 lakh. The Board approved the unaudited results on July 24, 2026, reviewed by R C Chadda & Co LLP under SEBI Listing Regulations.
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Bits Limited reported a significant turnaround in profitability for the first quarter of FY27, with standalone net profit surging 122% year-on-year to ₹16.34 lakh. The Mumbai-based IT services company posted revenue from operations of ₹43.54 lakh for the quarter ended June 30, 2026, marking a 41% increase from ₹30.90 lakh in the corresponding period last year. This growth underscores improved operational efficiency and revenue generation despite a modest rise in other expenditure.
The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on July 24, 2026. The filings were submitted to BSE Limited in pursuance of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. R C Chadda & Co LLP, the statutory auditors, issued a limited review report on the financial statements, confirming compliance with Ind AS 34 and SEBI regulations.
Financial Performance Highlights
Standalone revenue from operations rose to ₹43.54 lakh from ₹30.90 lakh in Q1FY26. Total revenue, including other income of ₹0.70 lakh, stood at ₹44.24 lakh. While employee benefit expenses remained stable at ₹7.50 lakh, other expenditure increased to ₹15.84 lakh from ₹11.25 lakh in the previous year’s quarter. Depreciation and amortisation expenses decreased to ₹4.56 lakh from ₹5.35 lakh. No tax expense was recorded for the period.
| Particulars | Q1FY27 (₹ Lakh) | Q1FY26 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 43.54 | 30.90 | 41% |
| Other Income | 0.70 | 0.11 | 536% |
| Total Revenue | 44.24 | 31.01 | 43% |
| Total Expenses | 27.90 | 23.62 | 18% |
| Net Profit After Tax | 16.34 | 7.39 | 121% |
| Basic EPS (₹) | 0.0146 | 0.0066 | 121% |
Consolidated results showed similar strength, with total comprehensive income rising 95% YoY to ₹17.64 lakh. This includes a share of profit from associate company Prurient IT Solutions Private Limited amounting to ₹1.30 lakh. Consolidated basic EPS increased to ₹0.0158 from ₹0.0080 in Q1FY26.
What the Numbers Show
The divergence between revenue growth (41%) and expense growth (18%) highlights improved operating leverage for Bits Limited in Q1FY27. While other expenditure saw an absolute increase of ₹4.59 lakh, it was more than offset by the higher top-line growth, resulting in a pre-tax profit margin expansion. The absence of tax liability further boosted the bottom line, allowing nearly all pre-tax profits to flow through to net income. The stability in promoter shareholding at 65.07% indicates continued confidence from promoters during this period of financial recovery.
Historical Stock Returns for BITS
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.06% | -1.83% | -6.02% | -25.62% | -31.41% | +2,316.13% |
Will the 41% revenue growth in Q1FY27 be sustainable as Bits Limited scales its operations, or was it driven by one-off project completions?
How does the significant increase in 'other expenditure' (up to ₹15.84 lakh) impact long-term operational efficiency and margin stability?
What is the strategic outlook for Prurient IT Solutions, given that its contribution accounted for a notable portion of the consolidated profit surge?
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