Anka India Limited reported a consolidated net profit of ₹5.20 lakh for the quarter ended June 30, 2026, reversing a net loss of ₹51.63 lakh recorded in the previous quarter. The company’s revenue from operations rose 4.4% quarter-on-quarter to ₹276.46 lakh, up from ₹264.69 lakh in the three months ended March 31, 2026. This improvement in profitability comes after the company completed the acquisition of Futech Internet Private Limited through a share swap arrangement, which was effectively allotted on June 11, 2025, resulting in a reverse merger situation 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 and subsequently approved by the Board. Statutory auditors R.S. Prabhu & Associates issued a limited review report on both the standalone and consolidated financial statements.

Financial Performance Highlights

The consolidated results show a total revenue of ₹283.54 lakh for the quarter, compared to ₹295.92 lakh in the previous quarter. Total expenses decreased significantly to ₹275.31 lakh from ₹342.15 lakh in the prior period, primarily due to a sharp reduction in employee benefits expense, which fell to ₹78.15 lakh from ₹263.24 lakh. Other expenses, however, saw an increase 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 stood at ₹105.00 lakh, a significant increase from ₹18.00 lakh in the prior quarter. The standalone results were also qualified by the statutory auditors.

Auditor Qualifications

R.S. Prabhu & Associates qualified the consolidated financial results citing two primary issues. First, the consolidation resulted in 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, amounting to ₹35.38 lakh, as an asset, expecting it to be adjusted against future tax payments. The auditors noted that considering the history of losses, recognizing this amount as an asset may not be prudent.

For the standalone results, the 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, given the company's overall financial position and history of losses.

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.