California Software Company Limited reported a net profit of ₹411.64 lakh for the quarter ended June 30, 2026, marking a sharp increase from ₹19.32 lakh in the corresponding period of the previous year. Revenue from operations surged to ₹662.88 lakh for the quarter, compared to ₹154.59 lakh in Q1FY26, driven by its IT and software development business. The board of directors approved the unaudited standalone and consolidated financial results for the period on July 20, 2026.

The company’s total income for Q1FY27 stood at ₹662.88 lakh, while total expenses were recorded at ₹110.89 lakh. Profit before tax for the quarter was ₹551.99 lakh, a substantial rise from ₹26.10 lakh in the prior year. Earnings per equity share (basic and diluted) increased to ₹0.67 from ₹0.03 in the same quarter last year. The financial results were reviewed by the Audit Committee and approved by the Board.

Financial Performance

The standalone and consolidated financial results for the quarter and year ended June 30, 2026, are detailed below:

Auditor's Observations

K. Gopal Rao & Co., Chartered Accountants, issued a Limited Review Report with a qualified conclusion. The auditors noted that trade receivables amounting to ₹2,336.55 lakh contain long-pending items for which no provision for expected credit loss has been created. Additionally, the current tax asset (net) of ₹380.02 lakh reported in the standalone financial results is subject to reconciliation, the effect of which is not quantifiable.

The auditors also highlighted that an investment in an equity instrument of a subsidiary amounting to ₹311.38 lakh is subject to impairment testing, and the effect of any potential impairment loss is not quantifiable. In respect of input tax credit for the three months ended June 2026, reconciliation matching with 2A/2B is pending. Compliance regarding TDS liability is also pending for payment and is expected to be made with interest.

The consolidated unaudited financial results include the interim financial information of subsidiary M/s. Aspire Communications Private Limited, which has not been reviewed by its auditors. The subsidiary reported nil revenue, nil profit after tax, and nil comprehensive income for the quarter ended June 30, 2026.

California Software Company Limited has approved in principle the acquisition of up to a 51% equity stake in Tech Aggregators Private Limited (Cashter). The Board of Directors granted this approval during a meeting held on June 18, 2026, via video conferencing. The strategic move targets the Chennai-based entity and is subject to the satisfactory completion of due diligence, valuation, and the receipt of necessary regulatory approvals.

The board sanctioned the execution of a Memorandum of Understanding (MoU) with Tech Aggregators Private Limited to establish a framework for evaluating the proposed transaction. Additionally, the directors authorized the commencement of legal, financial, tax, technical, operational, and compliance due diligence through independent professional advisors. This step ensures a comprehensive assessment of the target company before finalizing the transaction.

Further approvals include the appointment of Registered Valuers, Chartered Accountants, Company Secretaries, Legal Advisors, and Due Diligence Consultants as required. The board authorized Dr. Vasudevan Mahalingam, Managing Director & CEO, and Mr. K. Venkatesh, Company Secretary & Compliance Officer, to jointly execute the MoU, coordinate due diligence, and negotiate transaction terms.

The proposed transaction remains at a preliminary stage and is contingent upon final commercial negotiations, board approval of definitive documents, and shareholder approval if required. Compliance with the Companies Act, 2013, SEBI Regulations, and other stock exchange requirements is mandatory. The execution of the MoU does not create a binding obligation to complete the acquisition, and no final consideration has been determined yet.

The Board Meeting commenced at 5.00 PM IST and concluded at 6.30 PM IST. The intimation to the exchanges was signed by K. Venkatesan, Company Secretary & Compliance Officer, on June 18, 2026.