Covance Softsol reported a 10% year-on-year increase in standalone revenue from operations for the quarter ended June 30, 2026, reaching ₹48.44 crore. The Hyderabad-based IT services firm also posted a ₹1.32 crore net profit after tax, marking a 15% improvement over the ₹1.15 crore recorded in the corresponding period of FY25.

The company’s consolidated results reflected similar growth trajectories, with total income from operations rising to ₹70.00 crore in Q1FY26, compared to ₹67.00 crore in the same quarter last year. Consolidated net profit stood at ₹2.00 crore, up from ₹1.90 crore previously.

Financial Performance

The Board of Directors approved the unaudited financial results on August 14, 2026. The figures were reviewed by the Audit Committee and subjected to an unmodified limited review by statutory auditors.

Consolidated earnings per share (EPS) remained stable at ₹8.98, matching the previous year’s figure despite the revenue growth.

What the Numbers Show

A notable divergence exists between the standalone and consolidated profit margins. While standalone net profit margin expanded to approximately 2.7% from 2.6% in the prior year, the consolidated net profit margin contracted slightly to 2.9% from 2.8%. This suggests that the wholly owned US subsidiary, Softsol Resources Inc., may have faced margin pressure or higher operating costs relative to its revenue contribution during the quarter.

Corporate Governance

The financial statements comply with IND-AS 108 on operating segments, classifying the group’s activities under a single business segment: IT IES. Figures for the previous period have been regrouped where necessary to align with current classification standards.

Covance Softsol Limited reported a consolidated net profit of ₹3,169.98 lakh for the quarter ended March 31, 2026, compared to ₹630.40 lakh in the corresponding previous year. For the full financial year FY26, the company recorded a consolidated net profit of ₹630.40 lakh, a turnaround from the previous year's performance. The standalone net profit for the quarter stood at ₹632.13 lakh, while the annual standalone net profit was ₹377.99 lakh. The board approved the audited standalone and consolidated financial results at its meeting held on May 30, 2026.

The company's total income from operations on a consolidated basis rose to ₹7,968.07 lakh in Q4FY26 from ₹4,268.86 lakh in the same period last year. For the full year, consolidated total income reached ₹7,968.07 lakh. The statutory auditors have expressed an unmodified opinion on the results. The financial statements include the results of its wholly-owned subsidiary, Softsol Resources, Inc. USA, following the demerger of the IT/ITES business from Softsol India Limited effective September 26, 2024.

Financial Results Summary

The meeting was held at the company's registered office in Hyderabad. The intimation regarding the outcome of the board meeting was submitted to the stock exchanges in compliance with Regulation 29(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.