Avance's ₹13.24 cr profit is built on ₹13.84 cr of other income, not operations.
Annual net profit surged 150% as revenue shrank. The final quarter's ₹10.37 cr profit wipes out the full-year's operational shortfall, but only because of a non-core income line.
— 1 earlier story on Avance Technologies Ltd. →What's new
- FY26 net profit jumped 150% to ₹13.24 cr, but revenue fell 7% to ₹159.26 cr.
- The full-year profit is less than the ₹13.84 cr in other income recorded.
- Q4 swung to a ₹10.37 cr profit from a ₹1.36 cr loss a year earlier.
Why this matters
The headline profit growth looks impressive, but the underlying business shrank. With other income covering the entire bottom line and then some, the results mask continued operational pressure. For a nano-cap, this turns an earnings beat into a question of what kind of profit it is.
What we're watching
- The composition of other income in coming quarters to test sustainability.
- Whether revenue stabilises after the FY26 decline.
- Any guidance on core operating margins beyond the one-time income.
The full read
Avance Technologies posted a 150% jump in annual net profit to ₹13.24 crore. But revenue shrank 7% to ₹159.26 crore. The gap between top-line decline and bottom-line growth is explained by ₹13.84 crore in other income, a figure that actually exceeds the year's total profit. The core business lost ground. The company's Q4 performance, a swing to a ₹10.37 crore profit from a ₹1.36 crore loss, drove the annual number, but this volatility points to earnings that are not rooted in steady operations. For a nano-cap with a ₹208 crore market capitalisation, the EPS move from ₹0.027 to ₹0.07 looks sharp. The quality of that move hinges entirely on what happens to the other income line next year.
Questions answered
- How did Avance turn a loss into a ₹13.24 cr profit while sales fell?
- The company recorded ₹13.84 cr in other income for FY26, which was enough to cover the entire net profit. Revenue from operations fell 7% to ₹159.26 cr, indicating the core business did not drive the profit growth.
- What does 'other income' typically include, and why is it significant here?
- Other income can include interest, dividends, or one-time gains, distinct from core sales. At ₹13.84 cr, it exceeded the ₹13.24 cr net profit, meaning the core operations were not the primary profit driver for the year.
- How did the final quarter's performance contribute to the annual result?
- Q4 net profit was ₹10.37 cr, a swing from a ₹1.36 cr loss in the same quarter last year. This single quarter accounted for most of the full-year profit, underscoring the volatile and non-operational nature of the earnings.
- What was the auditors' view of the financial statements?
- The statutory auditors issued an unmodified opinion on the audited FY26 financial statements, indicating no material qualifications or emphasis-of-matter paragraphs were raised.
Story so far
All notes on AVANCE →- 29 May 2026 · 8:35 PM IST Avance's ₹13.24 cr profit is built on ₹13.84 cr of other income, not operations.
- 1d ago Avance posts ₹13.24 cr profit but the earnings are mostly other income.