PAN HR Solutions Limited reported a sharp improvement in earnings during FY26, with net profit for the second half of the financial year rising nearly 158% year-on-year as the company benefited from organisational restructuring, lower employee-related costs and improved operational efficiency.
According to the company's financial disclosures reviewed by ScanX, PAN HR Solutions recorded net profit of ₹432.20 lakh for the half year ended March 31, 2026, compared with ₹167.79 lakh in the corresponding period a year earlier.
The strong earnings performance came alongside continued revenue growth, with total income during the second half rising to ₹12,656.59 lakh, up from ₹9,885.11 lakh in H2 FY25.
Revenue growth combines with stronger profitability
The workforce management company delivered growth across both revenue and operating earnings, while also improving margins.
Key H2 FY26 financial metrics included:
• Total income: ₹12,656.59 lakh, up 28.04% year-on-year
• EBITDA: ₹486.89 lakh, up 29.89%
• EBITDA margin: 3.85%, compared with 3.79% a year earlier
• Net profit: ₹432.20 lakh, up 157.58%
• Net profit margin: 3.41%, compared with 1.70% in H2 FY25
• Earnings per share (EPS): ₹7.64, up from ₹3.10
The company expanded its net profit margin by 172 basis points, reflecting tighter cost controls and improved productivity.
Cost optimisation drives earnings expansion
A major contributor to the profit increase was a reduction in employee benefit expenses.
According to the company's disclosures:
• Employee benefit expenses declined to ₹493.19 lakh in FY26
• The figure stood at ₹789.94 lakh in FY25
The company attributed the improvement to optimisation of managerial remuneration and productivity-led operational efficiencies.
Finance costs remained limited, with total finance expenses of ₹3.21 lakh during FY26.
The results suggest the company was able to improve profitability without sacrificing revenue growth, a combination that strengthened overall operating performance.
Full-year income exceeds ₹235 crore
For the full financial year, PAN HR Solutions reported total income of ₹23,525.76 lakh, equivalent to more than ₹235 crore.
The company's annual performance included:
• Total income: ₹23,525.76 lakh
• EBITDA: ₹855.83 lakh
• EBITDA margin: 3.64%
• Net profit: ₹750.29 lakh
• Net profit margin: 3.19%
• EPS: ₹13.26
The figures indicate sustained profitability throughout the year despite challenging market conditions across several industries.
Strong balance sheet supports expansion plans
PAN HR Solutions ended FY26 with a debt-free balance sheet, providing financial flexibility for future growth initiatives.
The company reported:
• Net worth: ₹3,751.18 lakh
• Cash and bank balance: ₹2,433.61 lakh
The strengthened financial position follows the company's successful BSE SME IPO during the financial year.
Management believes the balance sheet provides a foundation for expansion into new business segments and geographic markets.
Workforce footprint exceeds 10,000 personnel
Operationally, PAN HR Solutions maintained a workforce deployment base of more than 10,000 personnel across client locations.
The company serves businesses across multiple sectors, including:
• E-commerce
• Quick commerce
• Logistics
• Manufacturing
During FY26, PAN HR Solutions also initiated a transition towards its Pay & Collect operating model, which management expects will support larger client engagements and improve scalability.
FY27 focus shifts to growth and expansion
Looking ahead, the company expects future growth to be supported by the deployment of IPO proceeds, expansion of the Pay & Collect model and entry into additional geographies and industry verticals.
With a debt-free balance sheet, growing workforce deployment network and improving profitability metrics, PAN HR Solutions enters FY27 with a stronger financial foundation than a year ago. The company's ability to maintain margin expansion while scaling operations will remain a key factor for investors and stakeholders monitoring its next phase of growth.