Board Meeting Outcomes

The Board of Directors of Decipher Labs Limited met on 13th August 2026 at 2:30 PM at the company's registered office in Hyderabad and concluded at 4:30 PM. The Board considered and approved three key items:

1. Un-Audited Financial Results (Standalone and Consolidated) for the quarter ended 30th June 2026

2. Limited Review Report (Standalone and Consolidated) for the quarter ended 30th June 2026

3. Appointment of Mr. Bhupendralal Waghray (DIN 07337149) as an Additional Director (Independent Category) for a period of five years effective 13.08.2026, subject to shareholder approval in the ensuing General Meeting

Director Appointment Details

Mr. Bhupendralal Waghray is a seasoned government officer with 38 years of service in the Commercial Tax Department, Government of Andhra Pradesh, having served as a Deputy Commercial Tax Officer with extensive experience in tax administration and revenue matters. He is not debarred from holding office of Director by virtue of any SEBI order or other statutory authority. No relationships between directors were disclosed.

Standalone Financial Results (Quarter Ended 30th June 2026)

The company reported weak standalone financial performance:

  • Total Income: ₹9.81 lakhs (compared to ₹84.65 lakhs in Q2 June 2025)
  • Revenue from Operations: ₹9.81 lakhs
  • Expenses: ₹17.69 lakhs (including Employee Benefits Expense of ₹5.49 lakhs, Other expenses of ₹11.35 lakhs)
  • Loss before tax: ₹7.88 lakhs (compared to profit of ₹6.03 lakhs in Q2 June 2025)
  • Net Loss: ₹7.93 lakhs (compared to net profit of ₹5.59 lakhs in Q2 June 2025)
  • Earnings per share (Basic & Diluted): (₹0.08) (compared to ₹0.06 in Q2 June 2025)
  • Paid-up Equity Share Capital: ₹1,010.00 lakhs (face value ₹10 each)

Segment Performance (Standalone)

The company operates in two segments:

1. Manufacturing and Trading of Pharmaceutical drugs: Revenue of ₹0.40 lakhs with segment loss of ₹0.32 lakhs

2. Consultancy Services: Revenue of ₹9.41 lakhs with segment loss of ₹7.56 lakhs

Consolidated Financial Results (Quarter Ended 30th June 2026)

The consolidated performance showed significant deterioration:

  • Revenue from operations: ₹241.39 lakhs
  • Other income: ₹9.75 lakhs
  • Total revenue: ₹251.13 lakhs
  • Total expenses: ₹469.66 lakhs (including Employee benefits expense of ₹275.96 lakhs, Other expenses of ₹180.40 lakhs)
  • Loss before tax: ₹218.52 lakhs
  • Net Loss: ₹218.57 lakhs
  • Total comprehensive income: ₹(193.11) lakhs
  • Earnings per share (Basic & Diluted): (₹2.16)
  • Net Loss attributable to owners of the parent: ₹218.57 lakhs

The consolidated results include wholly-owned subsidiary Decipher Software Solutions LLC, USA and step-down subsidiary Decipher W.L.L., Bahrain.

Segment Performance (Consolidated)

The group's consolidated segment performance:

  • Manufacturing and Trading of Pharmaceutical drugs: Segment result of ₹25.07 lakhs profit
  • Consultancy Services: Segment result of ₹150.07 lakhs profit
  • Total Profit before tax: ₹175.14 lakhs

Auditor's Review

Ramanatham & Rao Chartered Accountants (Firm Registration No.002934S) issued limited review reports for both standalone and consolidated financial results. For the consolidated results, the auditor noted they did not review the interim financial results of two subsidiaries (Decipher Software Solutions LLC, USA and Decipher Soft Middle East W.L.L Bahrain) which contributed total revenue of ₹231.58 lakhs, net loss of ₹210.64 lakhs, and total comprehensive income of ₹(185.18) lakhs for the quarter. Their conclusion was based on the reports of other auditors.

Regulatory Compliance Note

The company disclosed that the Government of India has notified four Labour Codes effective from November 21, 2025, consolidating 29 existing labour laws. The company has estimated no liability for own employees and is in the process of evaluating other possible impacts including for contract workforce.

Financial Reporting Framework

The financial results were prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013 and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and approved by the Board of Directors.