Financial Performance Highlights

  • Revenue from Operations: Increased 15.5% to ₹16,440.08 lakh in FY26 from ₹14,235.85 lakh in FY25
  • Net Profit/(Loss): Reported consolidated net loss of ₹(749.47) lakh in FY26 compared to net profit of ₹613.17 lakh in FY25
  • Standalone Performance: Revenue decreased 14.23% to ₹4,865.75 lakh; PAT decreased 64.7% to ₹128.73 lakh
  • Earnings Per Share: Consolidated EPS was ₹(11.72) for FY26 compared to ₹9.59 for FY25
  • Dividend Proposal: ₹1.50 per share (15%) on 63,92,238 equity shares, down from ₹2.00 per share in previous year

Significant Events and Impairments

  • Customer Contract Impairment: Full impairment of ₹335.81 lakh on customer contracts acquired through Elite Computer Consultants acquisition
  • Goodwill Impairment: Additional impairment of ₹230.19 lakh on goodwill from ITCATS LLC acquisition, totaling ₹1,098.83 lakh
  • US Market Focus: 99% of total revenue derived from US market operations
  • Subsidiary Investments: IT CATS LLC subscribed to common stock of Sarral Global, Inc. (60%) and Sapplica, Inc. (51%) for deferred cash consideration

AGM Details and Corporate Actions

  • AGM Date: July 10, 2026 at 3:30 PM via Video Conference
  • Record Date: July 3, 2026 for dividend entitlement
  • Key Resolutions: Adoption of financial statements, dividend declaration, re-appointment of directors, approval of material RPTs worth ₹36 crores with Sagarsoft INC USA
  • Director Re-appointments: K. Satish Chander Reddy, K. Pradeep Kumar Reddy, and Keerthi Anantha (Independent Director)
  • Subsidiary Remuneration: Approval sought for increased remuneration to ₹337.21 lakhs plus 2% commission for K. Roopesh, President of IT CATS LLC

Capital Structure and Ownership

  • Share Capital: Unchanged at 63,92,238 equity shares of ₹10 each (₹639.22 lakh)
  • Promoter Holding: S Sreekanth Reddy (18.28%), Rachana Sammidi (10.11%), Satish Chander Reddy Kalva (9.89%)
  • Other Equity: Decreased to ₹6,360.32 lakh from ₹6,819.41 lakh due to net loss

Subsidiary Information

  • Group Structure: Sagarsoft (India) Limited with subsidiaries including IT CATS LLC, Sapplica Inc., Elite Computer Consultants, L.P., and Sarral Global Inc.
  • Non-controlling Interest: Negative balance of ₹(216.06) lakh as of March 31, 2026

Financial Impact Analysis

  • Dividend Outflow: ₹95.88 lakh if approved
  • RPT Transaction: Maximum ₹36.00 crores with Sagarsoft INC, USA
  • Employee Costs: Increased to ₹12,894.95 lakh from ₹9,822.75 lakh
  • Cash Position: Decreased significantly to ₹1,442.46 lakh from ₹3,018.54 lakh