Company Overview
CG-VAK Software and Exports Limited reported its FY26 annual results with revenue growth of 8% to ₹5,809.63 lakhs and PAT of ₹912.19 lakhs. The company recommended a dividend of ₹1 per equity share (10% on face value), totaling ₹50.50 lakhs payout, subject to shareholder approval at the upcoming AGM.
Financial Performance & Business Metrics
- Revenue Composition: Offshore software services contributed ₹5,807.41 lakhs with North America representing 85% of business
- Subsidiary Performance: CG-VAK USA Inc. reported sales of US$1.83 million, a 34% decrease from previous year
- Key Ratios: Current ratio of 3.18, zero debt, operating profit margin of 23%, and return on equity of 13%
- Employee Base: 282 employees as of March 31, 2026 with gratuity obligation of ₹457.94 lakhs
Risk Management & Financial Disclosures
- Foreign Currency Exposure: USD exposure of ₹30,679 lakhs, ZAR exposure of ₹56,092 lakhs, with sensitivity showing ₹3.56 lakh profit impact for 5% rupee movement
- Lease Liabilities: ₹244.18 lakhs under Ind AS 116 with interest and depreciation costs of ₹123.65 lakhs for FY26
- Liquidity Profile: Maturity analysis shows ₹139.72 lakhs due within 1 year, ₹114.17 lakhs in 1-3 years, and ₹71.95 lakhs beyond 3 years
- Credit Risk: Minimal MSME payment delays with ₹6.95 lakhs principal amount remaining unpaid
Corporate Governance & Leadership
- Board Changes: Appointment of four new independent directors - Vasudevan Kidambi, S. Muthukumar, Mani Ravindran, and A. Sankar for 5-year terms
- AGM Details: 31st Annual General Meeting scheduled for September 28, 2026 through virtual mode with book closure from September 22-28, 2026
- Compliance Status: Secretarial audit shows general compliance with ongoing legal matters including ₹10.56 lakhs fixed deposit dispute before Madras High Court
Future Outlook & Strategy
The company plans to focus on Artificial Intelligence (AI) including AI-enabled software development and Agentic AI solutions, while strengthening capabilities in Outsourced Product Development (OPD), Product Engineering, Cloud and Data Analytics. North America will remain the primary market with selective expansion in Europe, Australia, Africa and other international markets.
Regulatory & Compliance Matters
- MCA Inspection: Show cause notices issued for procedural non-compliances under Companies Act, 1956
- CSR Activities: ₹25.07 lakhs spent on promoting education against obligation of ₹26.39 lakhs
- Auditor Details: M/s. SPP & Co as statutory auditors with audit fees of ₹2.00 lakhs