Paramount Communications Limited has released its financial results for the second quarter ended September 30, revealing a decline in profitability despite revenue growth.

Revenue Growth Amid Profit Decline

The company reported revenue from operations of Rs 450.47 crores for Q2, marking a decrease from Rs 462.10 crores in the previous quarter. This represents a quarter-on-quarter decline of approximately 2.5% in top-line performance.

Paramount Communications experienced a significant drop in its net profit. The company's profit after tax for Q2 stood at Rs 13.26 crores, down from Rs 19.00 crores in the previous quarter, indicating a decline of 30%.

Financial Highlights

Here's a breakdown of key financial metrics for Q2 compared to the previous quarter:

Half-Year Performance

For the half-year period ended September 30, Paramount Communications reported:

• Net profit of Rs 32.26 crores
• Revenue from operations of Rs 695.42 crores

Other Income

The company disclosed significant other income for the reported period:

• For the quarter: Rs 13.91 crores
• For the half-year: Rs 27.82 crores

This income was attributed to the maturity of key man insurance policies with Life Insurance Corporation of India.

Corporate Development

Paramount Communications announced that it has divested its entire shareholding in its wholly-owned subsidiary, Valens Technologies Private Limited, on November 6. This divestment occurred after the end of the reported quarter and may impact future consolidated results.

Board Approval

The Board of Directors approved these unaudited financial results at their meeting held on November 13.

Investors and analysts will likely be watching closely to see how Paramount Communications addresses the profitability challenges in the coming quarters, particularly in light of the recent divestment and the impact of other income on its financial performance.

Paramount Communications Limited has announced its decision to divest its entire stake in its wholly owned subsidiary, Valens Technologies Private Limited (VTPL). This strategic move comes just over two years after the initial acquisition, reflecting a shift in the company's investment strategy amid challenging market conditions.

Divestment Details

The Banking Finance Committee of Paramount Communications has approved the sale of its entire holding of 1,93,996 equity shares in VTPL. The divestment agreement was signed on November 6, 2025, with the transaction expected to conclude by November 15, 2025.

Financial Aspects

The divestment transaction involves the following key financial details:

Rationale for Divestment

The company cited negative growth and uncertainty about future business prospects as the primary reasons for this divestment. Paramount Communications considers this move to be in the best interest of the company, aiming to mitigate potential hardships that could arise from continued investment in VTPL.

Buyers and Transaction Details

The buyers of VTPL's shares are:

1. Marwar Portfolio Private Limited
2. Mr. Sanjeev Kumar Jain

It's worth noting that neither of the buyers is related to Paramount Communications' promoter group, ensuring an arm's length transaction.

Impact on Paramount Communications

While VTPL contributed to Paramount Communications' financials, its overall impact appears to be limited:

• Revenue Contribution: 1.33% of Paramount Communications' total revenue
• Net Worth Contribution: 0.35% of Paramount Communications' total net worth

Regulatory Compliance

The company has duly informed the stock exchanges about this material development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This divestment marks a significant corporate action for Paramount Communications, reflecting its adaptive strategy in response to changing market dynamics and subsidiary performance.