Cerebra FY26 loss widens, auditors flag going concern risks

Cerebra Integrated Technologies Limited reported a widened net loss of ₹716.42 crore for the financial year ended March 31, 2026, as revenue declined significantly to ₹59.54 crore. The company's statutory auditor, YCRJ & Associates, issued a disclaimer of opinion on the standalone and consolidated financial results, citing material uncertainties that cast significant doubt on the company's ability to continue as a going concern.

Financial Performance

The standalone net loss for FY26 widened from ₹473.17 crore in the previous year. Revenue from operations dropped to ₹59.54 crore from ₹356.15 crore in FY25. For the fourth quarter ended March 31, 2026, the company reported a net loss of ₹311.49 crore on revenue of ₹11.42 crore. Total expenses for the year surged to ₹823.84 crore, driven primarily by other expenses which stood at ₹700.33 crore.

Particulars	Year Ended 31.03.2026 (₹ in Lakhs)	Year Ended 31.03.2025 (₹ in Lakhs)
Revenue from Operations	595.42	3,561.50
Total Income	596.79	3,569.25
Total Expenses	8,238.42	7,685.19
Net Profit/(Loss) for the year	-7,164.24	-4,731.73
Earnings Per Share (Basic)	-6.40	-4.23

Auditor's Disclaimer of Opinion

YCRJ & Associates stated they could not obtain sufficient appropriate audit evidence to support the company's use of the going concern basis of accounting. The report highlighted that the company is incurring significant operating losses, has substantially reduced its workforce, and ceased key operations including refurbishment activities. Additionally, the company faces challenges in meeting obligations and servicing current liabilities.

The auditors also raised concerns over the devaluation of inventories amounting to ₹9.76 crore, noting a lack of item-wise details and valuation workings. Furthermore, the report flagged outstanding trade receivables of ₹143.07 crore, of which ₹142.99 crore was overdue for more than a year, and outstanding dues of ₹100.28 crore from an overseas party related to the sale of a former subsidiary, Cerebra Middle East FZCO Dubai.

Management Response

In the statement on the impact of audit qualifications, the management asserted that the going concern assumption remains appropriate based on mitigating actions underway. These measures include significant cost rationalization, renegotiation of vendor contracts, and discussions with potential investors to raise capital. The company is also identifying non-core assets for monetization to support working capital requirements and reduce liabilities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.37%	-4.15%	+15.99%	-43.94%	-39.94%	-94.13%

Following its board's approval of the Corporate Insolvency Resolution Process (CIRP) on May 11, 2026, Cerebra Integrated Technologies has announced May 29, 2026, as the record date to determine shareholder eligibility for the upcoming Extra-Ordinary General Meeting (EGM). The meeting is scheduled for Saturday, June 06, 2026, at 11:30 A.M. IST, via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The company communicated this update to BSE Limited and the National Stock Exchange of India Limited on May 18, 2026.

EGM and E-Voting Schedule

The EGM has been convened to seek shareholder consent for the Board to initiate CIRP by filing an application before the Bengaluru Bench of the National Company Law Tribunal (NCLT). The remote e-voting period will begin on Tuesday, June 02, 2026, at 9:00 A.M. IST and conclude on Friday, June 05, 2026, at 5:00 P.M. IST. Only members whose names appear in the Register of Members or as Beneficial Owners as on the record date, May 29, 2026, will be entitled to vote.

Parameter	Details
Record Date	May 29, 2026
EGM Date	June 06, 2026
EGM Time	11:30 A.M. IST
Remote E-Voting Start	June 02, 2026, 9:00 A.M. IST
Remote E-Voting End	June 05, 2026, 5:00 P.M. IST
E-Voting Service Provider	CDSL

Financial Distress and Rationale for CIRP

The Board of Directors approved the initiation of CIRP under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), during a meeting held on May 11, 2026. The company has cited significant financial distress over the past two to three financial years, driven by a lack of working capital, high overheads, and the impact of COVID-19. These factors have led to continuous operational losses, erosion of net worth, and a severe liquidity crisis.

Cerebra Integrated Technologies has defaulted on debt repayments to financial and operational creditors, with total outstanding debt amounting to approximately INR 90,00,00,000. The Board determined that CIRP is the most prudent course of action to maximize stakeholder value through a structured resolution process, benefit from the statutory moratorium on proceedings, and preserve the company as a going concern.

Resolution and Authorization

The Special Resolution to be passed at the EGM authorizes the Board to appoint an Interim Resolution Professional, engage legal counsel, and make necessary regulatory disclosures. Mr. Ranganathan Venkatraman, Chairman and Managing Director, and Mr. Vishwamurthy Phalanetra, Whole Time Director and CFO, have been authorized to represent the company before the NCLT. The results of the e-voting will be declared on or before June 9, 2026.