Starcom Information Technology Limited submitted its audited financial results for the quarter and year ended 31st March 2026 to BSE Limited under Regulation 30 and 33 of SEBI (LODR) Regulations, 2015.

Financial Performance Highlights

  • Total Income from Operations: ₹70.06 lakhs for Q4 FY26; ₹179.85 lakhs for FY26 (compared to ₹297.35 lakhs in FY25)
  • Net Loss before tax: ₹145.49 lakhs for Q4 FY26; ₹619.64 lakhs for FY26 (compared to ₹499.65 lakhs loss in FY25)
  • Net Loss after tax: ₹145.49 lakhs for Q4 FY26; ₹619.64 lakhs for FY26 (compared to ₹499.65 lakhs loss in FY25)
  • Total Comprehensive Loss: ₹158.25 lakhs for Q4 FY26; ₹625.97 lakhs for FY26
  • Earnings Per Share (Basic & Diluted): ₹(2.91) for Q4 FY26; ₹(12.39) for FY26

Capital Structure

  • Paid-up Equity Share Capital: ₹500.06 lakhs (face value ₹10 per share) - unchanged from previous periods
  • Other Equity: Negative ₹3,504.49 lakhs as at 31st March 2026 (negative ₹2,878.53 lakhs as at 31st March 2025)
  • Net Worth: Negative ₹3,004.43 lakhs as at 31st March 2026

Segment Performance (FY26)

  • Test, Measurement & Embedded Solutions for Educational Sector: Revenue ₹176.02 lakhs, Segment Loss ₹31.77 lakhs
  • Data Quality, Statistical & Analytics Software: Revenue ₹3.83 lakhs, Segment Profit ₹2.27 lakhs

Financial Position as at 31st March 2026

  • Total Assets: ₹2,755.70 lakhs (decreased from ₹7,975.18 lakhs in FY25)
  • Total Liabilities: ₹5,760.13 lakhs
  • Current Assets: ₹748.78 lakhs
  • Current Liabilities: ₹5,109.07 lakhs (current liabilities exceed current assets)
  • Non-current Assets: ₹7,506.92 lakhs (primarily intangible assets under development of ₹2,431.02 lakhs)

Cash Flow Statement (FY26)

  • Net cash flow from operating activities: Negative ₹189.44 lakhs
  • Net cash flow used in investing activities: Negative ₹2.60 lakhs
  • Net cash flow from financing activities: ₹185.73 lakhs
  • Decrease in cash and cash equivalents: ₹6.31 lakhs

Audit Qualifications and Key Disclosures

The auditors, CA S & Co., issued a qualified opinion with the following key observations:

1. Overdue Statutory Dues: The company has overdue statutory dues as of 31st March 2026 totaling:

  • Sales Tax/Service Tax/GST: ₹248.30 lakhs (including interest ₹177.37 lakhs)
  • Provident Fund/ESIC/Professional Tax: ₹209.74 lakhs (including interest ₹137.78 lakhs)
  • Tax Deducted at Source: ₹1,171.04 lakhs (including interest ₹674.35 lakhs)

Total overdue: ₹1,629.08 lakhs

2. Unprovided Rent Expense: The company has not paid rent amounting to ₹660.81 lakhs (net of TDS) for office premises up to 31st March 2019. The premises are jointly owned by promoter Mr. Ziaulla Sheriff and his business partner. The company has not provided rent expense of ₹607.15 lakhs for the period from 1st April 2019 to 31st July 2024 pending discussions with lessors for waiver.

3. Intangible Assets Under Development: The company is developing software related to Business Intelligence and Data Quality Solutions with carrying value of ₹2,431.02 lakhs as at 31st March 2026. The asset remains uncompleted for a long time, and auditors cannot verify whether future economic benefits will flow to the company.

4. Compensation Receipt: The company received ₹1,000 lakhs from a city builder as compensation for vacating leased premises. Due to absence of relevant documents, this amount has been shown as Other Current Liability.

Going Concern Uncertainty

The company has incurred cash losses and its net worth is fully eroded. Current liabilities exceed current assets as at the balance sheet date. The management is pursuing prospective investors to meet working capital requirements and believes operations will become profitable in future. Accordingly, financial statements have been prepared on a going concern basis.

Additional Information

  • The financial results were reviewed by the Audit Committee and approved by the Board of Directors on 30th May 2026
  • Prepared in accordance with Indian Accounting Standards (Ind AS)
  • Figures for previous periods have been reclassified/regrouped wherever necessary
  • The company has no outstanding defaults on loans or debt securities