Saven Technologies net profit falls 44% in Q1FY27 on income drop
Saven Technologies Limited posted a net profit of ₹75.35 lakh for Q1FY27, down 44.6% from ₹136.04 lakh in Q1FY26. Revenue from operations rose 7.5% to ₹485.54 lakh, but total income fell due to an 88.8% drop in other income. Operating expenses increased 6.0%, led by higher employee benefits and depreciation.
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Saven Technologies Limited reported a net profit of ₹75.35 lakh for the quarter ended June 30, 2026, marking a 44.6% decline from ₹136.04 lakh in the corresponding period of the previous fiscal year. While revenue from operations grew 7.5% year-on-year to ₹485.54 lakh, the significant drop in earnings highlights margin compression driven by increased operating expenses and a sharp collapse in other income. The company’s Board of Directors approved the unaudited financial results on July 30, 2026.
The quarterly results were reviewed by the Audit Committee and subsequently approved by the Board. The statutory auditors, Suryanarayana & Suresh, Chartered Accountants, conducted a limited review of the standalone financial results in accordance with Standard on Review Engagement (SRE) 2410. The financial statements were prepared in compliance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, and SEBI Listing Regulations.
Financial Performance Overview
Revenue from operations increased to ₹485.54 lakh in Q1FY27, up from ₹451.82 lakh in Q1FY26. However, total income stood at ₹495.11 lakh, lower than the ₹536.87 lakh recorded in the prior year quarter due to a sharp decline in other income. Other income fell 88.8% to ₹9.57 lakh from ₹85.05 lakh, significantly impacting the top-line growth trajectory.
| Particulars | Q1FY27 (₹ Lakh) | Q1FY26 (₹ Lakh) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 485.54 | 451.82 | +7.5% |
| Other Income | 9.57 | 85.05 | -88.8% |
| Total Income | 495.11 | 536.87 | -7.8% |
| Total Expenses | 394.41 | 372.26 | +6.0% |
| Profit Before Tax | 100.70 | 164.61 | -38.8% |
| Net Profit After Tax | 75.35 | 136.04 | -44.6% |
Operating expenses rose 6.0% to ₹394.41 lakh from ₹372.26 lakh. Employee benefits expense, the largest cost component, increased 5.8% to ₹318.66 lakh from ₹301.18 lakh. Depreciation and amortisation expense more than doubled to ₹25.87 lakh from ₹10.24 lakh, while other expenses decreased to ₹49.88 lakh from ₹60.84 lakh. The company reported no finance costs during the quarter.
What the Numbers Show
The divergence between revenue growth and profit decline indicates structural cost pressures rather than demand weakness. While core business operations generated higher revenue, the 88.8% collapse in other income removed a significant buffer that had previously supported profitability. Simultaneously, the doubling of depreciation expenses suggests recent capital investments are beginning to impact the bottom line. With employee benefits constituting nearly 66% of total expenses, any further wage inflation could continue to squeeze margins unless offset by pricing power or efficiency gains in other expense categories.
Historical Stock Returns for Saven Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -7.29% | -0.86% | -7.31% | -12.16% | -17.72% | +33.75% |
What specific strategic initiatives is Saven Technologies pursuing to offset the margin compression caused by rising employee benefits and depreciation costs?
How sustainable is the current revenue growth trajectory given the near-total elimination of other income as a profit buffer in future quarters?
Will the recent capital investments driving the doubled depreciation expense yield sufficient operational efficiency or revenue gains to justify the increased fixed costs?
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