Madala Holdings Limited (formerly Softsol India Limited) reported a significant contraction in profitability for the first quarter of FY26, with net profit falling 57% year-on-year. The company, based in Hyderabad, logged a net profit after tax of ₹3.24 lakh for the three months ended June 30, 2026, compared to ₹7.50 lakh in the same period last fiscal.

The decline in bottom-line figures was accompanied by a sharp drop in top-line growth. Revenue from operations stood at ₹48.44 lakh, down 29% from ₹68.33 lakh in Q1FY25. Earnings per share (EPS) decreased to ₹0.49 from ₹1.14 in the corresponding quarter of the previous year.

Financial Performance Overview

The unaudited financial results, approved by the Board of Directors on August 14, 2026, highlight a challenging operational environment for the holding company. While the company managed to retain profitability, the magnitude of the revenue and profit declines suggests pressure on core business activities or investment returns during the period.

What the Numbers Show

A notable divergence exists between the current quarter's performance and the immediately preceding quarter. In Q4FY25 (ended March 31, 2026), Madala Holdings reported a net loss of ₹6.85 lakh. The return to profitability in Q1FY26, despite the lower absolute profit compared to Q1FY25, indicates a stabilization of losses seen in the final quarter of the previous fiscal year. However, the reliance on other income—which dropped by nearly two-thirds—remains a key variable in the company's total revenue composition.

The company's equity share capital remains unchanged at ₹10.87 lakh. Reserves and surplus stood at ₹11.67 lakh as on June 30, 2026, reflecting the cumulative impact of past earnings and retained profits. The results were reviewed by the Audit Committee and approved by the Board, with statutory auditors issuing an unmodified conclusion on the limited review.

Madala Holdings Limited reported a net profit of ₹343.13 lakh for the quarter ended June 30, 2026, marking a turnaround from a loss of ₹721.08 lakh in the preceding quarter. Compared to the same period last year, profits rose 12% from ₹443.96 lakh. Revenue from operations grew 14% year-on-year to ₹386.03 lakh, up from ₹338.83 lakh in Q1FY26.

The company’s total income stood at ₹888.01 lakh, driven largely by other income which swung to a gain of ₹501.98 lakh from a loss of ₹814.98 lakh in Q4FY26. This positive contribution offset a sharp increase in depreciation and amortisation expenses, which rose to ₹373.33 lakh from ₹41.20 lakh in the previous quarter.

Financial Highlights

Earnings per share (EPS) came in at ₹2.32, compared to a loss of ₹4.88 per share in the previous quarter and ₹3.01 in Q1FY26. Employee benefits expense decreased slightly to ₹26.53 lakh from ₹31.55 lakh in Q4FY26.

What the Numbers Show

The financial performance was significantly influenced by non-operating items. Other income constituted approximately 56% of total income for the quarter, while depreciation and amortisation accounted for nearly 70% of total expenses. The spike in depreciation is attributed to a prospective revision in the estimated remaining useful life of certain buildings proposed for demolition as part of a redevelopment plan. This accounting change, rather than operational volume shifts, primarily drove the expense structure.

Corporate Actions

The Board of Directors approved the unaudited financial results and the Board’s Report for FY26 during a meeting held on August 14, 2026. The company has scheduled its 36th Annual General Meeting (AGM) for September 30, 2026, to be held via video conferencing or other audio-visual means.

The Register of Members and Share Transfer Books will remain closed from September 24, 2026, to September 30, 2026, inclusive. M/s. B S S & Associates have been appointed as the Scrutinizer for the AGM, with KFin Technologies Limited providing e-voting and video conferencing facilities. Statutory auditors Pavuluri & Co issued an unmodified conclusion on the limited review of the interim financial results.