Kernex Microsystems (India)'s Q2 FY 2025-26 Quarterly Results

Result Summary

• Kernex Microsystems (India) Ltd reported a 15.4% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 14.8%.
• Its expenses for the quarter were down by 17.6% QoQ and up 11.0% YoY.
• The net profit decreased 12.0% QoQ and decreased 4.4% YoY.
• The earnings per share (EPS) of Kernex Microsystems (India) Ltd stood at 3.86 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Kernex Microsystems (India) Ltd is a company operating within the technology sector. The company is primarily engaged in the design, development, and implementation of safety-critical systems and equipment for the rail industry. Over the years, Kernex has established itself as a notable player in the railway safety systems domain, providing solutions that enhance the operational safety and efficiency of rail networks. Recent developments in the industry or specific to Kernex are not available in the provided data, hence any recent strategic moves or product launches remain unreported in this analysis.

Revenue

In the second quarter of fiscal year 2026 (Q2FY26), Kernex Microsystems reported a total income of ₹47.60 crores. This marked a decrease of 15.4% compared to the previous quarter (Q1FY26), where the total income was ₹56.29 crores. However, when compared to the same quarter in the previous fiscal year (Q2FY25), the total income increased by 14.8%, from ₹41.48 crores. This year-over-year growth indicates an improvement in revenue generation compared to the same period last year, despite the quarter-over-quarter decline.

Profitability

Kernex Microsystems' profitability for Q2FY26 shows a mixed performance. The company recorded a Profit Before Tax (PBT) of ₹9.10 crores, which is a slight decrease of 4.7% from the previous quarter's ₹9.55 crores. However, this represents a significant year-over-year increase of 33.8% from ₹6.80 crores in Q2FY25. The Profit After Tax (PAT) for Q2FY26 was ₹6.52 crores, down by 12.0% from ₹7.41 crores in Q1FY26, and a decrease of 4.4% from ₹6.82 crores in Q2FY25. The earnings per share (EPS) for Q2FY26 stood at ₹3.86, reflecting a decrease of 13.1% quarter-over-quarter and 5.6% year-over-year. The tax expense for the quarter was ₹2.58 crores, which was a 20.6% increase from Q1FY26 and a substantial swing from a negligible tax credit in Q2FY25.

Operating Metrics

The operating expenses for Kernex Microsystems in Q2FY26 were ₹38.50 crores, showing a decrease of 17.6% from ₹46.74 crores in Q1FY26. On a year-over-year basis, the total expenses increased by 11.0% from ₹34.68 crores in Q2FY25. This reduction in expenses from the previous quarter alongside increased year-over-year expenses suggests changes in cost management or operational scale. The decrease in total expenses from the previous quarter aligns with the decline in total income, reflecting adjustments in operational activities. However, the overall increase from the previous year indicates a broader scale of operations or increased cost factors over the past year.