Accel Limited reported a standalone net profit of ₹5.44 crore for the financial year ended March 31, 2026, a significant increase from ₹1.79 crore in FY25. The company’s revenue from operations grew marginally by 0.8% to ₹164.33 crore, while EBITDA contracted slightly to ₹16.03 crore.

The board did not recommend a dividend for FY26, choosing to conserve resources for business requirements. However, the company paid the previous year’s dividend of ₹0.30 per share during the period.

Financial Performance

The company’s top-line growth was driven by its IT services division, which remained broadly flat at ₹156.43 crore compared to ₹156.53 crore in the previous year. The Realty segment saw a sharper increase, with turnover rising 21.4% to ₹7.90 crore.

Despite the rise in net profit, operating margins faced pressure. The EBITDA margin stood at 5.0%, down from 7.33% in the prior year. Management attributed the profitability impact to the adoption of new labor codes towards the year-end, which resulted in exceptional items totaling ₹1.22 crore related to gratuity and compensated absences.

Segment Highlights

Over 70% of the company’s revenue continues to be driven by annuity-based services. Key segment performances included:

• IT Infrastructure Management Services (IMS) turnover rose to ₹66.79 crore from ₹64.06 crore.
• Warranty and Logistics Management Services (WLMS) grew to ₹46.05 crore from ₹44.15 crore.
• Managed Print Services (MPS) increased to ₹6.51 crore from ₹6.34 crore.

Cybersecurity and Systems Integration divisions performed below projections but established a strong footing for future revenues, contributing ₹3.72 crore and ₹1.86 crore respectively.

What the Numbers Show

The divergence between the sharp rise in net profit and the decline in EBITDA highlights a non-operational driver in the bottom line. While operational efficiency saw a slight dip with EBITDA falling 2.1%, the net profit surge was largely aided by a significant reduction in finance costs, which decreased by ₹1.30 crore to ₹6.53 crore. This suggests that the improved bottom line is primarily a result of lower interest expenses rather than core operational expansion.

Corporate Developments

During the year, Accel completed the amalgamation of its subsidiary, Accel Media Ventures Limited (AMVL), with the holding company following NCLT approval. The merger, effective from April 1, 2024, has been reflected in the restated financial statements. Additionally, Mr. S. V. Rao ceased to be Whole-Time Director in April 2026 after his appointment as an Additional Director was not ratified by members within the required timeframe.

Accel Limited reported a standalone net loss of ₹66.33 lakhs for the quarter ended June 30, 2026 (Q1FY27), marking a significant reversal from the net profit of ₹121.32 lakhs recorded in the same quarter of FY26. The Board of Directors approved the unaudited financial results on August 11, 2026, alongside the appointment of M/s. Menon & Pai as statutory auditors for a five-year term, subject to shareholder approval at the ensuing Annual General Meeting.

The financial performance was heavily impacted by tax expenses and operating margins. While revenue from operations rose to ₹4,325.24 lakhs from ₹3,865.69 lakhs in Q1FY26, total expenses increased to ₹4,349.52 lakhs from ₹3,878.41 lakhs. Consequently, profit before tax stood at ₹12.39 lakhs, but after accounting for a tax expense of ₹78.72 lakhs, the company incurred the net loss. Consolidated net loss attributable to owners of the company was ₹57.15 lakhs.

Key Financial Metrics

Auditor Qualification and Investment Dispute

The most material disclosure in the filing is the qualified conclusion issued by statutory auditors K.S. Aiyar & Co. The qualification stems from an investment of ₹487.79 lakhs held in associate company Secureinteli Technologies Private Limited. An independent valuer assessed the fair value of this investment at ₹172.82 lakhs as of February 28, 2025, indicating a potential impairment of ₹314.97 lakhs. Management declined to recognize this impairment, citing growth prospects, leading auditors to state they were unable to comment on necessary adjustments to the carrying value.

This is not an isolated issue; the audit report notes that previous quarters (Q4FY26 through Q2FY26) and the full year ended March 31, 2026, also carried qualifications on this same matter. The auditor’s report further highlights that current quarter figures are not comparable to Q1FY26 due to the amalgamation of Accel Media Ventures Limited, effective April 1, 2024.

Segment Performance

The IT Services segment remained the primary revenue driver, contributing ₹4,117.52 lakhs to total revenue, up from ₹3,679.88 lakhs in Q1FY26. However, segment results for IT Services dropped to ₹151.28 lakhs from ₹242.85 lakhs in the prior year. The Realty segment saw its contribution rise to ₹136.10 lakhs from ₹19.99 lakhs in Q4FY26, though it fell short of the ₹253.42 lakhs reported in Q1FY26. Unallocated expenses and interest costs totaling ₹157.26 lakhs further eroded profitability.