GACM Technologies reported a significant contraction in profitability for the first quarter of FY27, with consolidated net profit falling 50% year-on-year to ₹1.52 crore. The Hyderabad-based software and financial consultancy firm saw its consolidated revenue from operations drop 33% to ₹45.00 lakh in Q1FY27 compared to ₹66.99 lakh in the same period last year. Standalone net profit also declined 50% to ₹1.51 crore, reflecting broader headwinds in the company’s core business segments.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, during a meeting held on August 12, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Gorantla & Co Chartered Accountants, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Consolidated total income decreased to ₹47.45 lakh from ₹69.15 lakh in Q1FY26. The decline was primarily driven by lower revenue from operations, which stood at ₹45.00 lakh against ₹66.99 lakh in the previous year’s corresponding quarter. Other income remained relatively stable at ₹24.54 lakh.

Total expenses for the group were ₹32.20 lakh, down from ₹36.00 lakh in Q1FY26. Employee benefits expense reduced to ₹8.17 lakh from ₹11.31 lakh, and cost of operations halved to ₹2.93 lakh from ₹5.81 lakh. However, depreciation and amortization expense increased significantly to ₹17.70 lakh from ₹7.60 lakh, impacting the bottom line.

On a standalone basis, revenue from operations fell 30% to ₹41.00 lakh from ₹58.69 lakh. Total expenses were ₹28.37 lakh, compared to ₹30.56 lakh in Q1FY26. Depreciation and amortization rose sharply to ₹15.06 lakh from ₹6.21 lakh, while employee benefits decreased to ₹7.01 lakh from ₹9.79 lakh.

What the Numbers Show

The divergence between the decline in operating costs and the sharp rise in depreciation highlights a shift in cost structure rather than pure operational efficiency gains. While employee benefits and direct operational costs decreased substantially, depreciation and amortization more than doubled in both standalone and consolidated figures. This suggests that the company is carrying higher fixed asset bases or intangible asset amortization charges that are not being offset by proportional revenue growth. The subsidiary, Gayiadi Fintech Private Limited, contributed ₹4.00 lakh in revenue and ₹0.127 lakh in net profit for the period, indicating minimal impact on the overall consolidated performance.

GACM Technologies Ltd has announced the execution of a Memorandum of Understanding (MoU) with Meridian Intelligence Private Limited, a company registered at Workflow, Hitex Bizness, 4th Floor, House No.1-98/3/5/23-27, Jubilee Enclave, Madhapur, Hyderabad, Telangana – 500 081. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The MoU is directed at establishing a cooperative framework for software development activities between the two parties.

Key Terms of the MoU

The agreement outlines a structured collaboration between GACM Technologies Ltd and Meridian Intelligence Private Limited, with the primary objective of advancing software development initiatives. The following table summarises the key details of the MoU as disclosed:

Nature and Scope of the Agreement

The MoU is intended to provide the foundation and framework for any and all anticipated binding agreements relating to the development of software. The parties are expected to work together in a cooperative and coordinated manner to fulfil the purpose of the understanding. The contract value under the arrangement is Rs 1,500 lakhs (Rupees Fifteen Hundred Lakhs only), and the engagement is structured to run until 30 September 2028, offering a defined multi-year timeline for the collaboration.

Related Party and Conflict of Interest Disclosures

GACM Technologies Ltd has confirmed that Meridian Intelligence Private Limited is not related to the promoter, promoter group, or group companies of the company in any manner. The transaction does not fall within the ambit of a related party transaction. Additionally, no other disclosures regarding nominee board positions, potential conflicts of interest, or similar matters have been reported in connection with this agreement. The company holds nil shareholding in Meridian Intelligence Private Limited.

Regulatory Compliance

The intimation has been filed in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III thereof and applicable SEBI Circulars. The disclosure was signed by Jonna Venkata Tirupati Rao, Managing Director of GACM Technologies Ltd (DIN: 07125471), and has been made available on the company's website. The company's registered office is located at 2nd Floor, GHMC No- 3-260/KA/201/NR PLOT NO. 260, Guttala Begumpet, Kavuri Hills, Hyderabad- 500033, Telangana, India.