Starcom Information Technology Limited submitted its unaudited standalone financial results for the quarter and half year ended September 30, 2026, to BSE Limited pursuant to Regulation 30 and 33 of SEBI (LODR) Regulations, 2015.

Financial Performance (Quarter Ended 30.09.2026)

  • Total Income from Operations (net): ₹49.57 lakhs (compared to ₹47.92 lakhs in Q2 FY26 and ₹22.11 lakhs in Q1 FY27)
  • Other Income: ₹4.69 lakhs
  • Total Income: ₹54.26 lakhs
  • Net Loss before tax: ₹158.41 lakhs (compared to ₹120.24 lakhs loss in Q2 FY26 and ₹188.41 lakhs loss in Q1 FY27)
  • Net Loss after tax: ₹158.41 lakhs
  • Total Comprehensive Loss: ₹158.41 lakhs
  • Earnings Per Share (Basic and Diluted): (₹3.17) per share of face value ₹10/- each
  • Equity Share Capital: ₹500.06 lakhs (unchanged)
  • Other Equity: Negative ₹3,851.31 lakhs (compared to negative ₹3,504.49 lakhs as of March 31, 2026)

Financial Performance (Half Year Ended 30.09.2026)

  • Total Income from Operations (net): ₹71.68 lakhs (compared to ₹76.49 lakhs in H1 FY26)
  • Other Income: ₹6.93 lakhs
  • Total Income: ₹78.61 lakhs
  • Net Loss before tax: ₹346.82 lakhs (compared to ₹279.94 lakhs loss in H1 FY26)
  • Net Loss after tax: ₹346.82 lakhs
  • Total Comprehensive Loss: ₹346.82 lakhs
  • Earnings Per Share (Basic and Diluted): (₹6.94) per share

Expense Breakdown (Half Year Ended 30.09.2026)

  • Purchases of stock-in-trade: ₹42.88 lakhs
  • Employee benefits expense: ₹122.27 lakhs
  • Finance costs: ₹28.95 lakhs
  • Depreciation and amortization: ₹22.36 lakhs
  • Interest on Delayed Statutory Payments: ₹57.57 lakhs
  • Provision for expected credit loss/bad debts: ₹80.79 lakhs
  • Other expenses: ₹70.23 lakhs
  • Total Expenses: ₹425.43 lakhs

Significant Notes and Disclosures

1. Overdue Statutory Dues: As of September 30, 2026, the company has overdue statutory dues of:

  • Sales Tax/Service Tax/GST: ₹238.10 lakhs (including interest of ₹176.37 lakhs)
  • Provident Fund/ESIC/Professional Tax: ₹206.57 lakhs (including interest of ₹140.01 lakhs)
  • Tax Deducted at Source: ₹1,204.01 lakhs (including interest of ₹730.65 lakhs)

Total overdue: ₹1,648.68 lakhs. The company has provided for interest up to September 30, 2026, but other consequential impacts are not ascertained.

2. Rent Obligations: The company has been unable to discharge rent obligations for office premises amounting to ₹660.81 lakhs (net of TDS) outstanding up to March 31, 2019. The premises are jointly owned by one of the promoters along with his business partner. Management is discussing waiver of rent for the period from April 1, 2019 to July 31, 2024 (₹607.15 lakhs), which has not been recognized as expense. No rent expense was recognized for the quarter or period ended September 30, 2026.

3. Intangible Assets Under Development: The company is developing Business Intelligence and Data Quality Solutions software with a carrying value of ₹2,431.02 lakhs as of September 30, 2026. The asset has been under development for a long time.

4. Going Concern Uncertainty: The company has incurred cash losses, its net worth is fully eroded, and current liabilities exceed current assets. Management is pursuing prospective investors for working capital and believes operations will become profitable in future. Financial statements have been prepared on a going concern basis.

5. Compensation Amount: The company received ₹1,000 lakhs from "City builder" (new buyer of land) as compensation for vacating premises that was previously under a 40-year lease between the premises' earlier owner and promoter group. Due to absence of relevant documents to conclude the nature of the transaction, this amount is shown as "Other current liability."

Segment Information (Half Year Ended 30.09.2026)

  • Test, Measurement & Embedded Solutions for Educational Sector: Revenue ₹63.89 lakhs, Segment Result (₹11.84) lakhs
  • Data Quality, Statistical & Analytics Software's: Revenue ₹7.79 lakhs, Segment Result (₹3.66) lakhs
  • Total Segment Revenue: ₹71.68 lakhs
  • Total Segment Result: (₹15.50) lakhs

Cash Flow (Half Year Ended 30.09.2026)

  • Net cash flow from operating activities: (₹118.38) lakhs
  • Net cash flow used in investing activities: (₹2.93) lakhs
  • Net cash flow from financing activities: ₹119.86 lakhs
  • Decrease in cash and cash equivalents: (₹1.46) lakhs
  • Cash and cash equivalents at end: ₹5.49 lakhs

Financial Position (As at September 30, 2026)

  • Total Assets: ₹2,641.91 lakhs (compared to ₹2,755.70 lakhs as of March 31, 2026)
  • Current Assets: ₹138.84 lakhs
  • Non-Current Assets: ₹2,503.08 lakhs (including Intangible Assets Under Development of ₹2,431.02 lakhs)
  • Total Equity: Negative ₹3,351.25 lakhs
  • Current Liabilities: ₹5,286.84 lakhs
  • Non-Current Liabilities: ₹706.32 lakhs
  • Current liabilities exceed current assets by: ₹5,147.99 lakhs

Auditor's Modified Opinion

The limited review report by C A S & CO, Chartered Accountants, contains modified opinions regarding:

  • Overdue statutory dues and unascertained consequential impacts
  • Unprovided rent expenses of ₹607.15 lakhs and potential impact on liabilities
  • Intangible assets under development of ₹2,431.02 lakhs and possible impairment
  • Going concern uncertainty due to cash losses and negative net worth
  • Classification of ₹1,000 lakhs compensation as other current liability

The auditor states that except for these observations, nothing has come to their attention that causes them to believe the statement contains material misstatements.