Punjab Communications Limited (Puncom) has reported a turnaround in its financial performance for the quarter ended September 30, 2025, posting a net profit despite auditor concerns over inventory valuation methods.

Financial Highlights

Puncom reported a net profit of ₹28.43 lacs for Q2 FY2026, compared to a loss of ₹100.44 lacs in the same quarter last year. The company's revenue from operations stood at ₹816.60 lacs for the quarter.

Operational Performance

The company's total revenue, including other income, increased to ₹1,106.24 lacs in Q2 FY2026 from ₹753.80 lacs in the corresponding quarter of the previous year. This growth may be attributed to improved operational efficiency and market conditions.

Auditor Concerns

Despite the positive financial results, the company's auditors, Charanjit Singh & Associates, have raised significant concerns in their limited review report:

1. Inventory Valuation: The auditors noted that the company's inventory valuation method does not comply with the stated accounting policy of using the FIFO (First-In-First-Out) method. Instead, raw materials are valued at the "last purchase rate," which is not in compliance with Ind AS 2 on Inventories.

2. Work in Process and Finished Sub-assemblies: The auditors pointed out discrepancies in the valuation of work in process and finished sub-assemblies, which are currently valued only at material cost, contrary to the company's stated policies.

3. Unbilled Revenue: The report highlighted a lack of proper disclosure regarding unbilled revenue in the financial statements.

Management Response

The company's management has acknowledged these concerns and stated that cost experts have been engaged to assess the inventory valuation process. For the fiscal year 2024-25, the company has initiated a process with experts for inventory valuation in line with normal industry practices.

Outlook

While Puncom has shown a significant improvement in its financial performance, the auditor's concerns raise questions about the company's accounting practices. Investors and stakeholders may need to closely monitor how the company addresses these issues in the coming quarters.

The company's ability to maintain its profitability while resolving the auditor's concerns will be crucial for building investor confidence and ensuring long-term financial stability.

Punjab Communications Limited (Puncom) has announced a delay in submitting its unaudited financial results for the quarter ended September 30, 2025, due to the unavailability of its Chairman, Sh. K.K. Yadav, IAS.

Rescheduled Board Meeting

The company's 235th Board Meeting, originally scheduled for November 13, 2025, has been postponed to November 18, 2025. This new date falls beyond the regulatory deadline of November 14, 2025, set by the Securities and Exchange Board of India (SEBI) for quarterly result submissions.

Reason for Delay

According to Punjab Communications' disclosure to the Bombay Stock Exchange (BSE), the delay is attributed to Chairman Sh. K.K. Yadav's participation in a government delegation's road show. The event, described as a 'Pre-summit Domestic Outreach visit of Govt. of Punjab delegation,' is scheduled to take place in Hyderabad and Chennai from November 11-14, 2025.

Regulatory Compliance

In adherence to SEBI regulations, the company has provided a detailed explanation for the delay to the BSE. Punjab Communications has cited the Master circular on compliance with the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated November 11, 2024, which mandates such disclosures.

Company's Assurance

The company has assured better compliance with SEBI regulations in the future. Punjab Communications stated that it would submit the Notice of Board Meeting to the stock exchange shortly, in compliance with Regulation 29 of SEBI (LODR) Regulations, 2015.

Key Details

This delay in financial reporting highlights the challenges companies may face in balancing regulatory compliance with other business and governmental commitments. Investors and stakeholders will be closely watching for the release of Punjab Communications' Q2 results and any potential impact this delay might have on market perceptions.