Austere Systems Limited has incorporated a wholly-owned subsidiary, Austere Next Private Limited, on June 25, 2026, to expand its operations in the software development sector. The new entity is classified as a related party and will focus on software development, software as a service (SAAS), and mobile application development. Austere Systems holds a 51% shareholding in the subsidiary through cash consideration.

The incorporation was disclosed to BSE Limited pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no specific governmental or regulatory approvals were required for this acquisition. The subsidiary is registered in India and will operate under the broader umbrella of Austere Systems' existing business verticals.

Details of the Subsidiary

The board of Austere Systems approved the strategic move to bolster its capabilities in the SAAS and mobile application domains. The subsidiary's activities are expected to complement the parent company's current service offerings. The filing was signed by Piyush Gupta, Director & CFO of Austere Systems Limited.

Austere Systems Limited reported a 76.3% increase in profit after tax for FY26, reaching ₹503.94 lakh, driven by a 19.7% rise in revenue from operations. The company’s total income for the year stood at ₹2,335.07 lakh, up from ₹1,886.17 lakh in FY25. The financial performance reflects a strong recovery in service-based revenue, which constituted the majority of the top line, while in-house product revenue declined compared to the previous year.

Financial Performance

The company’s revenue from operations grew to ₹2,228.87 lakh in FY26 from ₹1,862.05 lakh in FY25. Other income also saw a significant increase, rising to ₹106.2 lakh from ₹24.12 lakh in the prior year. Total expenditure for the year was ₹1,653.7 lakh, an increase from ₹1,498.4 lakh in FY25. Profit before tax for FY26 was ₹681.05 lakh, compared to ₹384.09 lakh in the previous year.

Segment Revenue

Revenue bifurcation indicates a continued reliance on service-based offerings, which generated ₹2,069.77 lakh in FY26, up from ₹1,541.61 lakh in FY25. In contrast, revenue from in-house products decreased to ₹159.10 lakh from ₹320.44 lakh in the same period. The total revenue from IT services for FY26 was ₹2,228.87 lakh.

Balance Sheet and Cash Flows

The company’s total shareholders’ funds more than doubled to ₹3,500.54 lakh in FY26 from ₹1,617.86 lakh in FY25, supported by an increase in share capital to ₹1,047.81 lakh. Total assets stood at ₹3,955.04 lakh. Cash flow from operating activities was ₹350.94 lakh, while investing activities saw an outflow of ₹1,973.89 lakh, primarily due to investments. Cash and cash equivalents at the end of the year were ₹372.32 lakh.