KS Smart Technologies: consolidated PAT falls 56% QoQ to ₹1.65 Cr as revenue slips 26%

On a consolidated basis — the primary number — KS Smart Technologies Limited (formerly Soma Papers and Industries Limited) reported revenue of ₹172.30 Cr and profit after tax of ₹1.65 Cr (owners' share ₹1.73 Cr, after a ₹0.07 Cr loss absorbed by non-controlling interests) for the quarter ended 30 September 2026, down 26% and 56% respectively from Q1 FY27's ₹233.43 Cr revenue and ₹3.80 Cr PAT. No year-on-year comparison is presented or meaningful here: the company became the reporting entity for subsidiary KS Smart Solutions Pvt Ltd only during FY26 via a reverse acquisition, and per Note 5 to this filing, consolidated comparatives for the quarter/half-year ended 30 September 2025 were not required to be presented — this is effectively only the second disclosed consolidated quarter. Standalone, the listed parent is now a pure holding company with revenue of just ₹0.15 Cr and a loss of ₹0.21 Cr for the quarter. The margin picture is mixed and the real story sits below the operating line. EBITDA margin (cost of sales + employee cost + other expenses basis) actually expanded to 6.05% from 4.06% QoQ as cost of sales fell faster than revenue, but finance costs jumped 56% QoQ to ₹9.51 Cr (current borrowings rose to ₹206.54 Cr at quarter-end from ₹152.12 Cr at FY26-end) and depreciation rose 19% to ₹1.49 Cr, pulling PBT down to ₹3.30 Cr from ₹5.73 Cr. The effective tax rate also rose to roughly 50% (current tax ₹4.86 Cr against a deferred-tax credit of only ₹3.21 Cr) from roughly 34% in Q1, so net margin compressed to 0.96% from 1.60% even as the operating line improved — a finance-cost and tax drag on an otherwise better operating quarter. No management guidance is on record for this company (none in our data, and no outlook statement accompanies this filing beyond the routine board-outcome letter), and no street estimates were found for this quarter — it is a small, recently-restructured BSE-listed entity (scrip 516038) without visible analyst coverage, so both vsGuidance and vsStreet are unknown. At the same board meeting the company approved an NCLT-bound scheme to amalgamate wholly-owned subsidiary KS Smart Solutions into the parent, simplifying the group structure; separately, after the quarter closed (11 November 2026), the subsidiary won a ₹82.65 Cr order from KELTRON for roughly 1,799 smart classrooms in Rajasthan executable by December 2026 — neither affects this quarter's reported numbers but both bear on near-term structure and order book. The company has also raised authorised capital by ₹100 Cr (October) and called an EGM for a share-capital increase, alongside incorporating a US step-down subsidiary, signalling a funding and expansion push. Execution of the KELTRON order and any capital raise are the markers to watch for whether Q3 FY27 reverses this quarter's sequential revenue and margin slide.