Mahaveer Infoway posted a net profit of ₹64.05 crore for the financial year ended March 31, 2026, marking a sharp recovery from the ₹8.00 crore profit recorded in FY25.

The Hyderabad-based IT and telecom solutions provider saw its total income rise to ₹384.32 crore from ₹301.22 crore in the previous year. This growth was primarily fueled by a substantial increase in other income rather than core operations.

Financial Performance

Revenue from operations contracted slightly by 4.2%, declining to ₹261.48 crore from ₹273.07 crore in FY25. Despite the dip in top-line growth, the company managed to reduce finance costs significantly.

Finance costs fell to ₹2.97 crore from ₹12.87 crore in the prior year, reflecting improved debt management. Depreciation and amortization expenses remained flat at ₹11.71 crore for both periods.

What the Numbers Show

The dramatic improvement in profitability was driven almost entirely by non-operational factors. Other income surged to ₹122.84 crore from ₹28.15 crore, largely due to capital gains of ₹93.26 crore.

This indicates that the core business, which generated lower operating revenue, contributed minimally to the bottom-line surge. The reliance on investment gains suggests that operational efficiency alone did not drive the profit expansion, highlighting a divergence between top-line stagnation and bottom-line growth.

Balance Sheet and Governance

Mahaveer Infoway strengthened its balance sheet by reducing short-term borrowings to ₹137.39 crore from ₹313.07 crore in FY25. The current ratio improved to 2.88 from 1.74, indicating better liquidity position.

The Board decided not to recommend any dividend for FY26. Instead, the entire net profit of ₹64.05 crore was transferred to retained earnings. Total reserves and surplus stood at a deficit of (₹83.69 crore) against a paid-up capital of ₹550.90 crore.

Mr. Ashok Kumar Jain, Managing Director, retires by rotation at the upcoming Annual General Meeting scheduled for September 30, 2026, and seeks reappointment. The company also noted compliance issues regarding Section 185 of the Companies Act, 2013, related to advances made to persons in whom directors are interested, which is being addressed through a special resolution.

Mahaveer Infoway Limited reported a net loss of ₹12.88 lakh for the quarter ended June 30, 2026, a sharp decline from the profit of ₹10.05 lakh recorded in the corresponding period of the previous year, as revenue from operations completely dried up. The company's total income for the quarter stood at ₹7.40 lakh, derived solely from other income, compared to a total revenue of ₹75.41 lakh in Q1FY26. This financial performance underscores a significant operational slowdown during the first quarter of the fiscal year.

The board of directors, in a meeting held on July 13, 2026, approved the standalone unaudited financial results for the quarter. The review was conducted in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Independent Auditor's Review Report issued by Kalyana & Co, Chartered Accountants, confirmed that based on their review, nothing came to their attention that would suggest the financial results contained material misstatements or failed to disclose required information.

A detailed breakdown of the expenses reveals that employee costs remained the highest outflow at ₹12.97 lakh, followed by other expenses at ₹4.52 lakh and depreciation at ₹2.50 lakh. Despite the zero revenue from operations, the company managed to keep finance costs at nil for the quarter, compared to ₹2.50 lakh in the previous year. The total expenses for the quarter aggregated to ₹20.27 lakh, exceeding the total income and resulting in the reported net loss.

Financial Performance

The financial statements highlight a drastic reduction in operational activities across the company's segments. Segment reporting indicates that revenue from the IT & Consultancy segment, which was ₹75.41 lakh in the prior year quarter, fell to zero. Similarly, the Mobiles and Educational segments recorded no revenue. The unallocated revenue, which includes other income, stood at ₹7.40 lakh for the quarter.

Management Changes

In a significant administrative development, the board accepted the resignation of Ms. Monika Ashish Rathi as the Company Secretary cum Compliance Officer of the company, effective June 30, 2026. The resignation was submitted due to her acceptance of a better professional opportunity with another organization. The board has been requested to file the necessary forms with the statutory authorities regarding this change.

The reconciliation of Net Profit reported under Indian GAAP with Ind AS for the quarter ended June 30, 2026, shows no variance, with the net loss remaining at ₹12.88 lakh under both standards. The company confirmed that it has complied with Accounting Standard-34 regarding segment-wise reporting. The paid-up equity share capital remained unchanged at ₹550.90 lakh during the period.