Anka India Limited reported a consolidated net profit of ₹5.20 lakh for the quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹51.63 lakh recorded in the previous quarter. The company’s revenue from operations increased by 4.4% quarter-on-quarter to ₹276.46 lakh, up from ₹264.69 lakh in the three months ended March 31, 2026. This shift to profitability follows the completion of the acquisition of Futech Internet Private Limited via a share swap arrangement, which was allotted on June 11, 2025, resulting in a reverse merger under Ind AS 103.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 30, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the audit committee before board approval. Statutory auditors R.S. Prabhu & Associates issued a limited review report on both standalone and consolidated financial statements.

Financial Performance Highlights

Consolidated total revenue stood at ₹283.54 lakh for the quarter, compared to ₹295.92 lakh in the previous quarter. Total expenses declined sharply to ₹275.31 lakh from ₹342.15 lakh in the prior period. This reduction was primarily driven by a steep drop in employee benefits expense, which fell to ₹78.15 lakh from ₹263.24 lakh. However, other expenses rose significantly to ₹149.17 lakh from ₹33.31 lakh in the previous quarter.

On a standalone basis, Anka India Limited reported a net profit of ₹0.40 lakh for the quarter, compared to a net profit of ₹2.32 lakh in the previous quarter. Standalone revenue from operations was ₹105.00 lakh, a substantial increase from ₹18.00 lakh in the prior quarter. The standalone results were also subject to qualification by statutory auditors.

Auditor Qualifications

R.S. Prabhu & Associates qualified the consolidated financial results due to two primary issues. First, the consolidation led to the recognition of goodwill amounting to ₹18,96,38,548, which has not been tested for impairment as of June 30, 2026. Second, the company continues to recognize minimum alternative tax paid in previous years, totaling ₹35.38 lakh, as an asset, expecting adjustment against future tax payments. The auditors noted that recognizing this amount as an asset may not be prudent given the history of losses.

For the standalone results, auditors raised a similar qualification regarding the recognition of the minimum alternative tax credit of ₹35.38 lakh as an asset. They stated this recognition is not in consonance with the Guidance Note on accounting for credit available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, considering the company's overall financial position and loss history.

What the Numbers Show

The turnaround in consolidated profitability is largely attributable to cost containment rather than top-line growth. While revenue increased modestly by 4.4% quarter-on-quarter, employee benefit expenses dropped by nearly 70%, falling from ₹263.24 lakh to ₹78.15 lakh. This drastic reduction in operating costs allowed the company to move from a pre-tax loss of ₹46.23 lakh to a pre-tax profit of ₹8.23 lakh. However, the increase in other expenses to ₹149.17 lakh warrants monitoring in subsequent quarters to ensure sustainable margin improvement.

Anka India reported a consolidated net loss of ₹46.34 lakh for the financial year ended March 31, 2026, widening from a loss of ₹36.29 lakh in the previous year, as revenue from operations increased to ₹1,809.43 lakh. The company's board approved the standalone and consolidated audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026. R.S. Prabhu & Associates, the statutory auditors, issued a qualified opinion on the annual consolidated financial results, highlighting material accounting irregularities.

Audit Qualifications and Financial Impact

The auditors identified two key qualifications in their report. First, the company recognized goodwill amounting to ₹18.96 crore arising from consolidation but did not test it for impairment at the year-end. Consequently, the auditors stated they could not comment on the correctness of the recognized goodwill. Second, the company recognized MAT credit of ₹35.38 lakh as an asset in the consolidated financials, expecting it to be adjusted against future tax payments, despite incurring losses for the past few years.

In the standalone financial results, the auditors similarly qualified the opinion regarding the recognition of MAT credit of ₹35.37 lakh and Deferred Tax Assets of ₹0.56 lakh. The auditors opined that given the history of losses and overall financial position, recognizing these amounts as assets is not prudent and does not align with relevant guidance notes and accounting standards.

Consolidated Financial Performance

For the year ended March 31, 2026, the company reported a total revenue of ₹1,887.45 lakh, up from ₹1,424.69 lakh in the prior year. Total expenses increased to ₹1,914.03 lakh from ₹1,462.59 lakh. The company reported a loss before tax of ₹26.58 lakh. On a quarterly basis, the standalone entity reported a profit of ₹2.33 lakh for the quarter ended March 31, 2026, but a net loss of ₹741.85 lakh for the full year.

Board Appointments and Disclosures

The board appointed M/s Sudhir K & Associates as the Internal Auditor for the financial year ending March 31, 2027. Additionally, Mr. Sameer Kumar, Company Secretary & Compliance Officer, was authorized to determine the materiality of events and make necessary disclosures to the stock exchanges. The consolidated financial results include the figures of Futech Internet Private Limited, a wholly-owned subsidiary acquired via a share swap arrangement effective June 11, 2025.