Company Overview

7Seas Entertainment Limited is an India-based developer and publisher of digital games and interactive content headquartered in Hyderabad, Telangana. The company focuses on mobile and casual gaming with capabilities spanning concept development, game design, software engineering, art, quality assurance, and release management.

Financial Performance FY2025-26

The company reported strong financial performance for the year ended 31 March 2026:

Key Financial Highlights:

  • Revenue from operations: ₹2,011.55 lakh (up 23.1% from ₹1,634.29 lakh in FY2024-25)
  • Profit after tax: ₹222.90 lakh (up 33.9% from ₹166.47 lakh in FY2024-25)
  • Total income: ₹2,013.72 lakh (up 22.3% from ₹1,646.10 lakh)
  • Total assets as at 31 March 2026: ₹3,073.35 lakh
  • Total equity as at 31 March 2026: ₹2,934.75 lakh
  • Basic and diluted EPS: ₹0.96 (up from ₹0.75 in FY2024-25)

Breakdown of Revenue:

  • Export sale of services: ₹2,010.86 lakh
  • Domestic sale of services: ₹0.68 lakh

Expense Analysis:

  • Employee benefits expense: ₹1,000.72 lakh
  • Finance costs: ₹0.20 lakh (comprising bank charges)
  • Depreciation and amortization: ₹104.46 lakh
  • Other expenses: ₹685.44 lakh
  • Total expenses: ₹1,790.82 lakh

Balance Sheet Position

Key Assets as at 31 March 2026:

  • Trade receivables: ₹567.11 lakh (increased from ₹213.80 lakh)
  • Loans and advances: ₹791.69 lakh (increased from ₹624.35 lakh)
  • Property, plant and equipment: ₹300.77 lakh
  • Intangible assets: ₹441.71 lakh
  • Cash and cash equivalents: ₹231.60 lakh
  • Fixed deposits: ₹500.00 lakh (included in other non-current financial assets)

Capital Structure:

  • Authorized share capital: ₹25.00 crore (2,50,00,000 equity shares of ₹10 each)
  • Paid-up equity share capital: ₹23,11,22,450 (2,31,12,245 equity shares of ₹10 each)

Preferential Issue Details

The company completed a preferential issue on 25 February 2026 with the following components:

Equity Shares:

  • 6,00,000 equity shares issued for cash: ₹4.80 crore received
  • 1,90,000 equity shares issued through promoter-loan conversion: ₹1.52 crore (non-cash)

Convertible Warrants:

  • 13,75,000 warrants issued: ₹11.00 crore total consideration
  • ₹2.75 crore received as 25% upfront consideration

Total Issue Size: ₹17.32 crore

Cash Actually Received: ₹7.55 crore (₹4.80 crore + ₹2.75 crore)

Non-cash Conversion: ₹1.52 crore

Brickwork Ratings India Private Limited, the Monitoring Agency, reported no deviation from the objects of the issue for the quarter ended 31 March 2026.

Business Strategy and Portfolio Development

The company's portfolio strategy combines casual and mobile gaming with selective development across sports, racing and simulation genres. During FY2025-26, management focused on:

  • Strengthening development and delivery processes
  • Broadening development focus towards sports, racing and simulation experiences
  • Integrating AI-assisted tools into design and testing workflows

AI Integration:

The company integrated selected AI-assisted capabilities into development processes for:

  • Testing and quality assurance (identifying defects and evaluating test scenarios)
  • 3D and visual design (character placement, environments, asset combinations)
  • User-interface and user-experience design (prototyping and interface alternatives)
  • Production support (repetitive analysis and documentation)

Human review and accountability remain central to AI-assisted output, with attention to quality, intellectual-property rights, confidentiality, and player experience.

Key Financial Ratios

| Ratio | FY2025-26 | FY2024-25 | Change | Explanation |

| Current ratio | 15.48 times | 5.82 times | +165.9% | Current assets increased while current liabilities declined |

| Debt-equity ratio | 0.0037 times | 0.0647 times | -94.4% | Borrowings declined and total equity increased |

| Trade receivables turnover | 5.15 times | 12.03 times | -57.2% | Average trade receivables increased faster than revenue |

| Operating profit margin | 10.98% | 10.27% | +6.9% | Operating profit increased faster than revenue |

| Net profit margin | 11.08% | 10.19% | +8.8% | PAT increased faster than revenue |

| Return on Net Worth | 8.38% | 9.22% | -9.1% | Closing net worth increased faster than PAT |

Corporate Governance and Board Composition

Board Structure as at 31 March 2026:

  • Total Directors: 8
  • Executive Directors: 2
  • Non-Executive Non-Independent Directors: 2
  • Independent Directors: 4
  • Women Directors: 3 (including 2 women Independent Directors)

Board Changes During FY2025-26:

  • Mr. Bommineni Mohan Rao (Non-Executive Director) resigned on 5 September 2025
  • Mrs. C. Sita Visalakshi (Independent Director) resigned on 5 September 2025

Board Changes After Year-End:

  • Mr. K. Pradeep Kumar (Non-Executive Director) resigned on 18 April 2026
  • Mr. N. Mahender Reddy (Independent Director) resigned on 14 August 2026

Board Meetings: 6 meetings held during FY2025-26

Dividend and Reserves

  • No dividend recommended for FY2025-26
  • No transfer to General Reserve proposed
  • Profit for the year carried forward in retained earnings under Other Equity

Subsequent Events (Post 31 March 2026)

  • Expanded AI-enabled gaming and digital-content initiatives under "7Seas AI" positioning in May 2026
  • Provided uniform kits to Telangana State Senior Water Polo team in July 2026
  • Mr. K. Pradeep Kumar resigned as Non-Executive Director on 18 April 2026
  • Mr. N. Mahender Reddy resigned as Independent Director on 14 August 2026

35th Annual General Meeting

  • Date: 30 September 2026 at 11:00 a.m. IST
  • Mode: Video Conferencing/Other Audio Visual Means
  • Agenda: Adoption of financial statements and re-appointment of Mrs. Lingamaneni Hemalatha as Director
  • Book closure: 24 September 2026 to 30 September 2026
  • Cut-off date for e-voting: 23 September 2026