Board Meeting Details

The Board of Directors meeting commenced at 11:30 AM and concluded at 4:30 PM on August 06, 2026.

Key Approvals

1. Approval of Unaudited Financial Results: The Board approved the unaudited financial results (Standalone and Consolidated) for the quarter ended June 30, 2026. The results were subjected to limited review by statutory auditors B S R & Associates LLP.

2. Approval of Annual General Meeting Notice: The Board approved the notice of the 40th Annual General Meeting (AGM) scheduled to be held on Wednesday, September 16, 2026, through Video Conferencing (VC)/Other Audio Visual Means (OAVM).

Standalone Financial Results (Q1 FY2027)

  • Revenue from operations: ₹0 lakh (Q4 FY2026: ₹41 lakh; Q1 FY2026: ₹39 lakh)
  • Other income: ₹122 lakh (Q4 FY2026: ₹369 lakh; Q1 FY2026: ₹183 lakh)
  • Total Income: ₹122 lakh (Q4 FY2026: ₹410 lakh; Q1 FY2026: ₹222 lakh)
  • Total expenses: ₹991 lakh (Q4 FY2026: ₹1,022 lakh; Q1 FY2026: ₹429 lakh)
  • Loss before exceptional items and tax: ₹(869) lakh (Q4 FY2026: ₹(612) lakh; Q1 FY2026: ₹(207) lakh)
  • Exceptional items loss: ₹(801) lakh (Q4 FY2026: ₹(708) lakh; Q1 FY2026: ₹(221) lakh)
  • Loss before tax: ₹(1,670) lakh (Q4 FY2026: ₹(1,320) lakh; Q1 FY2026: ₹(428) lakh)
  • Net Loss for the period: ₹(1,670) lakh (Q4 FY2026: ₹(1,320) lakh; Q1 FY2026: ₹(428) lakh)
  • Earnings per share (Basic and Diluted): ₹(0.51) (Q4 FY2026: ₹(0.40); Q1 FY2026: ₹(0.13))
  • Paid-up equity share capital: ₹6,584 lakh (face value per share ₹2)

Consolidated Financial Results (Q1 FY2027)

  • Revenue from operations: ₹418 lakh (Q4 FY2026: ₹528 lakh; Q1 FY2026: ₹703 lakh)
  • Other income: ₹368 lakh (Q4 FY2026: ₹781 lakh; Q1 FY2026: ₹573 lakh)
  • Total Income: ₹786 lakh (Q4 FY2026: ₹1,309 lakh; Q1 FY2026: ₹1,276 lakh)
  • Total expenses: ₹2,454 lakh (Q4 FY2026: ₹2,683 lakh; Q1 FY2026: ₹1,726 lakh)
  • Loss before exceptional items and tax: ₹(1,668) lakh (Q4 FY2026: ₹(1,374) lakh; Q1 FY2026: ₹(450) lakh)
  • Exceptional items gain/(loss): ₹0 lakh (Q4 FY2026: ₹57 lakh gain; Q1 FY2026: ₹0 lakh)
  • Loss before tax: ₹(1,668) lakh (Q4 FY2026: ₹(1,317) lakh; Q1 FY2026: ₹(450) lakh)
  • Net Loss for the period: ₹(1,668) lakh (Q4 FY2026: ₹(1,317) lakh; Q1 FY2026: ₹(450) lakh)
  • Earnings per share (Basic and Diluted): ₹(0.51) (Q4 FY2026: ₹(0.40); Q1 FY2026: ₹(0.14))

Going Concern Uncertainty

Auditors highlighted material uncertainty regarding the company's ability to continue as a going concern due to:

  • Continuous losses for past several years
  • Fully eroded net worth
  • Current liabilities exceeding current assets by ₹44,974 lakh as at June 30, 2026 (March 31, 2026: ₹45,510 lakh)
  • Net loss of ₹1,670 lakh for Q1 FY2027 (FY2026: ₹3,344 lakh)

Promoter Support Mechanisms

1. HCL Corporation Private Limited (significant promoter shareholder) approved support via lien on fixed deposits totaling ₹11,960 lakh (utilized out of authorized limit of ₹1,50,000 lakh), approved by shareholders on September 14, 2017.

2. HCL Capital Private Limited (promoter group company) approved financial support up to ₹1,50,000 lakh in the form of advances/loans, unsecured NCDs, guarantees, etc. Currently utilized ₹35,500 lakh through issuance of 35,50,000 unlisted, unsecured redeemable non-convertible debentures (NCDs) of face value ₹1,000 each carrying coupon rate of 0.001% per annum for 10 years. The NCDs are classified as current liability due to holder's right to demand repayment after twelve months and five days. Finance cost includes interest expense of ₹655 lakh for Q1 FY2027 recognized using EIR of 8% per annum.

Exceptional Items (Standalone)

  • Provision for loss in subsidiary (HCL Infotech Limited): ₹733 lakh (Q4 FY2026: ₹800 lakh; Q1 FY2026: ₹2,715 lakh)
  • Loss allowance against loan given to subsidiary (Pimpri Chinchwad eServices Limited): ₹0 lakh (Q4 FY2026: ₹1 lakh; Q1 FY2026: ₹1 lakh)
  • One-time impact of New Labour Codes: ₹25 lakh gain (Q4 FY2026: ₹0; Q1 FY2026: ₹77 lakh loss)
  • Total exceptional loss: ₹708 lakh (Q4 FY2026: ₹801 lakh; Q1 FY2026: ₹2,788 lakh)

Legal and Arbitration Matters

1. Arbitration Proceedings: Initiated against customers for contracts originally awarded to HCL Infosystems and transferred to HCL Infotech Limited under Scheme of Arrangement. HCL Infotech received ₹17,593 lakh against equivalent bank guarantees, shown as "amount collected under litigation" in other current liabilities.

2. UIDAI Arbitration Award: Received final arbitration award of ₹10,281 lakh (including interest ₹3,379 lakh) against contract with Unique Identification Authority of India. Financial impact not recognized as award is challenged in Delhi High Court.

Other Significant Disclosures

  • The company operates through a single segment providing IT support services
  • Write-back of old payables and provisions: ₹2 lakh (Q1 FY2027), ₹120 lakh (Q4 FY2026), ₹5 lakh (Q1 FY2026), ₹877 lakh (FY2026)
  • New Labour Codes implementation resulted in one-time increase in employee benefit provisions of ₹77 lakh for FY2026
  • The figures for Q4 FY2026 are balancing figures between audited annual figures and published year-to-date figures up to Q3 FY2026

Subsidiaries Included in Consolidation

  • HCL Infotech Limited
  • HCL Investment Pte. Limited
  • Pimpri Chinchwad eServices Limited