HCL Infosystems Limited announced its unaudited financial results (standalone and consolidated) for the quarter ended June 30, 2026 (Q1 FY27) through a regulatory filing submitted to BSE Limited and National Stock Exchange of India Limited.

Financial Results

  • Revenue: ₹417.55 lakhs (₹4.18 crore) for Q1 FY27, compared to ₹528.20 lakhs (₹5.28 crore) in the previous quarter (Q4 FY26)
  • Loss Before Tax (PBT): Negative ₹1668.08 lakhs (₹16.68 crore) for Q1 FY27, compared to negative ₹1316.72 lakhs (₹13.17 crore) in Q4 FY26

Business Highlights and Explanations

  • The quarter-on-quarter revenue decline of ₹110.65 lakhs is attributed to one-time revenue recognized in the previous quarter from:
  • A Defense project change request: ₹69.86 lakhs
  • Another customer: ₹40.79 lakhs
  • The increased loss in Q1 FY27 is due to the absence of certain benefits present in the previous quarter, including:
  • Interest on tax refunds received in Q4 FY26
  • Writebacks of certain vendor balances/provisions in Q4 FY26

Management Commentary

Mr. Gaurav Bhalla, Manager of HCL Infosystems Ltd, stated that during the quarter, the company's management continued to focus on:

  • Expediting the collection of tax refunds
  • Recovery of long-overdue receivables from customers through arbitration proceedings

Company Updates

  • The company has initiated arbitration proceedings against several customers to recover overdue dues
  • Significant effort and cost is being incurred on these recovery proceedings
  • The company continues to incur costs related to:
  • Project execution
  • Regulatory compliance obligations
  • Maintenance of internal financial controls
  • Management of ongoing litigations
  • Provisioning for unutilized GST Input Tax Credit
  • Legal, professional and consultancy expenses: ₹601.70 lakhs (₹6.02 crore) during the quarter

Significant Legal Developments

  • Supreme Court Order: Received a favorable order from the Supreme Court dismissing an appeal filed by the Commissioner of Income Tax
  • Case Background: Related to compensation received by the company during financial year 1997-98 that was treated as capital receipt by the company
  • Outcome: Income tax demand of ₹1,490 lakhs (₹14.90 crore) has been quashed

Tax Refunds

  • Received tax refunds amounting to ₹2,660 lakhs (₹26.60 crore) during the quarter
  • Purpose: Refund of pre-deposit in connection with matter relating to taxability of batteries sold in composite packs along with mobile phones
  • Jurisdiction: State of Rajasthan
  • Tax Periods: 2009-10 and 2011-12