Pan Electronics Q1 Results: Net loss narrows to ₹41.24 lakh
Pan Electronics (India) Ltd posted a Q1FY27 net loss of ₹41.24 lakh on revenue of ₹78.92 lakh. Expenses fell to ₹120.22 lakh, but fixed costs like depreciation remained high relative to sales. Borrowings increased to ₹3,909.40 lakh.
*this image is generated using AI for illustrative purposes only.
Pan Electronics (India) Limited reported a net loss of ₹41.24 lakh for the quarter ended June 30, 2026, widening from a loss of ₹5.59 lakh in the corresponding period of FY25. The Pan Electronics board approved the unaudited financial results on August 13, 2026.
Revenue from operations dropped sharply to ₹78.92 lakh, down from ₹196.16 lakh in Q1FY26. This decline was accompanied by a reduction in total expenses to ₹120.22 lakh, compared to ₹201.88 lakh in the prior year quarter. Other income remained negligible at ₹0.05 lakh.
Financial Performance
The company’s cost of materials consumed stood at ₹47.30 lakh, while employee benefit expenses were ₹12.13 lakh. Depreciation and amortisation expenses increased slightly to ₹26.74 lakh from ₹26.41 lakh in the previous year. Finance costs were not reported for the current quarter, whereas they stood at ₹5.33 lakh in Q1FY26.
| Metric | Q1FY27 (₹ Lakh) | Q1FY26 (₹ Lakh) |
|---|---|---|
| Revenue from Operations | 78.92 | 196.16 |
| Total Expenses | 120.22 | 201.88 |
| Net Loss | (41.24) | (5.59) |
| EPS (Basic) | (1.03) | (0.14) |
Balance Sheet Position
As of June 30, 2026, total assets decreased to ₹1,074.93 lakh from ₹1,147.88 lakh as of March 31, 2026. Current assets included cash and cash equivalents of ₹27.74 lakh and trade receivables of ₹174.49 lakh. Inventories stood at ₹150.30 lakh.
On the liabilities side, non-current borrowings rose to ₹3,909.40 lakh, up from ₹3,880.79 lakh in the preceding quarter. The company had no current borrowings as of June 30, 2026. Trade payables were recorded at ₹44.50 lakh. Equity share capital remained unchanged at ₹400.00 lakh, while other equity showed a deficit of ₹3,290.49 lakh.
What the Numbers Show
The divergence between revenue decline and expense reduction highlights operational scaling challenges. While revenue fell by approximately 60% year-on-year, total expenses decreased by roughly 40%. Specifically, depreciation expenses remained relatively flat at ₹26.74 lakh despite the significant drop in revenue, indicating high fixed-cost rigidity. Additionally, the absence of finance costs in Q1FY27, compared to ₹5.33 lakh in Q1FY26, suggests a potential change in debt servicing patterns or accounting classification, though non-current borrowings actually increased during the period.
Historical Stock Returns for Pan Electroncis
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.60% | -6.99% | -10.33% | -29.03% | -49.96% | -69.22% |
What strategic measures is Pan Electronics planning to implement to address the high fixed-cost rigidity, particularly regarding depreciation, in the face of declining revenue?
How does the increase in non-current borrowings to ₹3,909.40 lakh impact the company's long-term solvency and debt servicing capacity given the current equity deficit?
What factors contributed to the sharp 60% year-on-year drop in revenue, and are there signs of demand recovery or new order bookings for the upcoming quarters?
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