Sharp India Limited disclosed its unaudited financial results for the quarter ended June 30, 2026, approved by the Board of Directors in a meeting held on August 7, 2026, from 5:00 PM to 6:30 PM.
Financial Performance
- Revenue from operations: Rs. 0.00 lakhs
- Other income (net): Rs. 4.35 lakhs (compared to Rs. 0.79 lakhs in previous quarter and Rs. 1.25 lakhs in corresponding quarter last year)
- Total Income: Rs. 4.35 lakhs
- Total Expenses: Rs. 580.22 lakhs, comprising:
- Employee benefit expense: Rs. 141.10 lakhs
- Depreciation, amortisation and impairment expense: Rs. 4.05 lakhs
- Other expenses: Rs. 63.16 lakhs
- Finance costs: Rs. 371.91 lakhs
- Loss before tax: Rs. 575.87 lakhs
- Tax expense: Rs. 0.00
- Net loss for the quarter: Rs. 575.87 lakhs
- Loss per share (basic and diluted): Rs. (2.22) per share of face value Rs. 10 each
- Paid-up equity share capital: Rs. 2,594.40 lakhs (unchanged)
Change in Control and Ownership
Sharp Corporation, Japan (former holding company) entered into a Share Purchase Agreement with Smart Services Private Limited on April 14, 2026, for the sale of its entire 75% shareholding in Sharp India Limited for an aggregate consideration of Rs. 19.45 crore. The share transfer was consummated on June 2, 2026, resulting in Sharp Corporation Japan ceasing to exercise control over the company. Simultaneously, the Board of Directors was reconstituted, and Smart Services Private Limited was classified as part of the Promoter and Promoter Group.
Assignment of Borrowings
The company's External Commercial Borrowings (ECB) from Sharp Corporation Japan amounting to Rs. 15.84 crore (at drawdown) were assigned to Unbounded Opportunities Fund SPC, Cayman Islands, pursuant to a Deed of Assignment dated April 14, 2026.
Borrowings from erstwhile fellow subsidiaries Sharp Business Systems (India) Private Limited (SBSI) and Sharp Software Development India Private Limited (SSDI) were assigned to Kripa Anand Rishi Cellular Private Limited pursuant to separate Deeds of Assignment dated April 10, 2026.
These assignments became effective on June 2, 2026, making Unbounded Opportunities Fund SPC and Kripa Anand Rishi Cellular Private Limited the new lenders.
Going Concern Status and Operational Update
The company has had no production activity since Financial Year 2015-16 due to absence of orders. Accumulated losses as of June 30, 2026, stand at Rs. 19,653.52 lakhs, resulting in erosion of net worth.
The erstwhile management had reassessed the company's financial position and concluded that financial statements should be prepared on a 'not going concern' basis from the quarter and half year ended September 30, 2025, onwards. Accordingly, all assets are measured at lower of estimated net realizable value and carrying amount, and liabilities at their settlement amounts.
For the year ended March 31, 2026, there was an additional charge of Rs. 216.87 lakhs to profit and loss account for reinstatement of borrowings from erstwhile related parties, disclosed under exceptional items.
Future Plans and Approvals
Following the change in ownership, the Board of Directors in its meeting held on July 2, 2026, considered proposals for change in the company's name, alteration of the Object Clause of the Memorandum of Association and Articles of Association, and other related matters. The company is currently in the process of obtaining requisite approvals from shareholders through postal ballot by remote e-voting.
Pending shareholder approvals, the financial results for the quarter ended June 30, 2026, continue to be prepared on a 'not going concern' basis, making previous period figures not comparable.