Punjab Communications Limited disclosed its unaudited standalone financial results for the quarter ended June 30, 2026 (Q1 FY2027), approved by the Board of Directors in their 240th meeting held on August 12, 2026. The meeting commenced at 4:00 PM and concluded at 6:00 PM.
The disclosure is made pursuant to Regulation 30(6) read with Part A of Schedule III and Regulation 33(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Financial Figures (₹ in Lacs)
Profitability:
- Profit before tax for Q1 FY27: ₹286.60 Lacs (vs. ₹34.99 Lacs in Q1 FY26)
- Profit for the period (after tax) for Q1 FY27: ₹286.60 Lacs (vs. ₹34.99 Lacs in Q1 FY26)
- Total Comprehensive Income for Q1 FY27: ₹299.27 Lacs (vs. ₹14.19 Lacs in Q1 FY26)
Revenue:
- Revenue from operations for Q1 FY27: ₹583.21 Lacs (vs. ₹666.91 Lacs in Q1 FY26)
- Other Income for Q1 FY27: ₹214.18 Lacs (vs. ₹267.82 Lacs in Q1 FY26). This includes ₹165.62 Lacs from rental income and ₹47.72 Lacs from interest on fixed deposits.
- Total Revenue (1+2) for Q1 FY27: ₹797.39 Lacs (vs. ₹934.73 Lacs in Q1 FY26)
Expenses:
- Cost of materials consumed: ₹109.03 Lacs (vs. ₹171.50 Lacs in Q1 FY26)
- Employee benefits expense: ₹324.61 Lacs (vs. ₹322.83 Lacs in Q1 FY26)
- Other expenses: ₹203.89 Lacs (vs. ₹287.37 Lacs in Q1 FY26)
- Finance costs: ₹0.15 Lacs (vs. Nil in Q1 FY26)
- Depreciation and amortisation: ₹7.59 Lacs (vs. ₹4.26 Lacs in Q1 FY26)
Earnings Per Share (EPS):
- Basic EPS for Q1 FY27: ₹2.38 (vs. ₹0.29 in Q1 FY26)
- Diluted EPS for Q1 FY27: ₹2.38 (vs. ₹0.29 in Q1 FY26)
Capital Structure:
- Paid-up equity share capital (face value ₹10/-): ₹1,202.36 Lacs (unchanged YoY)
Limited Review Report by Statutory Auditors
M/s Charanjit Singh & Associates, Chartered Accountants, issued a qualified conclusion on the limited review of the unaudited financial results. Their report cites several bases for qualification:
1. Inventory Valuation Non-Compliance: Raw material inventory is valued using the "last purchase rate" method instead of the stated FIFO policy. Work-in-process and finished sub-assemblies are valued only at material cost (using last purchase rate), contrary to the policy which requires including direct labour and overheads.
2. Non-Moving Inventory: Non-moving raw materials are not written down to net realizable value (replacement cost) as required by Ind AS 2.
3. Expected Credit Loss (ECL): The company lacks an accounting policy to estimate ECL for trade receivables and other financial assets as mandated by Ind AS 109.
4. GST Reconciliation: Balances of GST as per books and the portal require reconciliation.
5. Contingent Liabilities: Contingent liabilities are not fully disclosed. Management stated that in certain cases, liability cannot be ascertained and they will discuss with their legal officer.
The auditors also included an Emphasis of Matter paragraph drawing attention to:
- Note 2: No depreciation charged on fully depreciated assets (temporary structure, electrical installation, technical know-how).
- Note 13: Balance in "Other Current Financial Assets — Others" relates to an escrow account (money held on behalf of VMC & its associated companies). Reasons for the balance are still underway.
- Note 9 & 21: Most trade receivables and payables as of March 31, 2026, are outstanding for more than three years. An external agency has been hired, and its report is awaited.
The report includes an Other Matter note stating that the financial statements for the year ended March 31, 2025, and quarter ended June 30, 2026, were reviewed by predecessor auditors who expressed an adverse conclusion.
Additional Notes from Financial Results
- The company is primarily engaged in the telecom and spares business, treated as a single operating segment.
- The figures for the previous period have been regrouped and restated for comparability.
- The financial results are prepared in accordance with Indian Accounting Standards (Ind AS).
- The CEO and CFO have certified the results per Regulation 33(2)(a) of the LODR Regulations.
- The company is taking corrective actions for updating variations in inventory per Ind AS 2.