Pervasive Comm. Q4 FY26 Results (BSE: 517172)
Signal: Loss reversed
The read
Q4 results are an accounting anomaly: revenue jumped 152% YoY to ₹3,283 Lakh but that was accompanied by a net negative cost of goods sold due to inventory destruction/disposal. Underlying operations are cash-negative (operating cash flow -₹3,721 Lakh for FY26) and the company has negative net worth (other equity -₹14 Lakh) despite inflated equity from warrant conversion. The full-year net loss of ₹4.31 Lakh and minuscule EPS reflect this. This is not a sustainable earnings trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹32.83 Cr | 151.76% | 431.18% |
| Net profit | ₹14.72 Cr | 2553.33% | |
| EPS | ₹0.16 | N/A | |
| EBIT margin | 0% |
P&L walk
Q4 standalone profit of ₹1,472.26 Lakh is entirely an accounting construct: revenue of ₹3,282.66 Lakh with zero cost of materials (purchases netted by a 'negative cost' of ₹4,289.96 Lakh from destocking inventory), generating a gross profit that dwarfs all other expenses. Full-year net loss of ₹4.31 Lakh belies this one-off quarter.
Segments
No segment reporting – company operates a single segment (agricultural product trading). Note 10 states gold bars purchased during the year but no sales made, hence no separate segment.
Key concerns
- Q4 profit entirely dependent on inventory liquidation (₹4,290 Lakh destocked) – not repeatable.
- Full-year net loss of ₹4.31 Lakh despite Q4 windfall indicates persistent operating weakness.
- Negative operating cash flow of -₹3,720.87 Lakh in FY26, far worse than FY25's -₹2,820.47 Lakh.
- Negative net worth (other equity -₹13.98 Lakh) – balance sheet severely impaired.
- Massive equity dilution from warrant conversion (shares outstanding went from ~9.5 Lakh to ~9,009.5 Lakh), making EPS nearly zero even on a profitable quarter.
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