Financial Performance Overview
Orchasp Limited reported a significant turnaround in FY26 with a consolidated net profit of ₹105.20 lakhs, compared to a loss of ₹1,052.35 lakhs in FY25. Revenue from operations remained stable at ₹2,125.62 lakhs (FY25: ₹2,108.27 lakhs), while other income surged to ₹393.85 lakhs primarily due to a foreign exchange gain of ₹383.44 lakhs. Earnings per share (basic and diluted) stood at ₹0.03 compared to -₹0.42 in the previous year.
Capital Structure and Corporate Actions
The company increased its paid-up share capital to ₹6,928.51 lakhs through preferential allotments, including 2.68 crore shares to promoter Mrs. P. Rajeswari. A new preferential issue of up to 1.5 crore equity shares at ₹4.74 each is proposed to promoter entity Wahtulmsylh Llmqawlat to convert an outstanding loan of ₹7.11 crore. Post-issue, promoter holding would increase from 18.48% to 21.86%.
Board and Governance Changes
The 32nd Annual General Meeting is scheduled for September 30, 2026, to adopt financial statements and approve several resolutions including director appointments. During FY26, the Board appointed new independent directors (Mr. Srinivasu Sunkara and Mr. Ravi Prasad Muthyam) and a woman director (Mrs. Sirisha Pattapurathi), while three independent directors completed their terms.
Subsidiary Operations and Challenges
The company's subsidiaries - Cybermate Infotek Limited Inc (USA), Cybermate International, Unipessoal, LDA (Portugal), and Orchasp Inc (USA) - contributed no additional revenues. The Portuguese subsidiary received notice for cancellation of its certificate of incorporation due to non-compliance, leading to transfer of investments to newly incorporated Orchasp Inc (USA) which awaits RBI approvals to commence operations.
Audit Qualifications and Contingent Liabilities
Statutory auditors issued a qualified opinion citing: (1) uncertainty around impairment of investment in Portuguese subsidiary (₹6,825 lakhs), (2) ageing trade receivables (₹9,755.20 lakhs outstanding >3 years) and payables without confirmations, and (3) non-payment of statutory dues for over 6 months. Substantial contingent liabilities include income tax demands of ₹21.90 crore, Enforcement Directorate penalty of ₹111.59 crore, and GST demand of ₹12.58 crore.
Financial Position and Cash Flows
Total assets stood at ₹12,180.84 lakhs with significant components being financial investments (₹6,825 lakhs) and trade receivables (₹16,025.58 lakhs). Cash flow from operating activities remained negative at -₹420.15 lakhs, though improved from -₹1,557.99 lakhs in FY25. The company maintained 58 employees and is developing multiple digital platforms including indusayush (healthcare) and induscrafts (ecommerce).