Net Avenue Technologies has been directed by the Principal Commercial Court, Egmore, Chennai, to pay Rs 13.92 lakh to Fasttrack Logistics. The order, issued in C.O.S. No. 1167 of 2022, mandates the payment of Rs 13,92,749 along with interest at 18% per annum on Rs 9,16,160 from April 2018. The company is also required to bear the cost of the suit.

The disclosure was made to the National Stock Exchange of India Ltd pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015. The filing was submitted by Rajesh Nahar, Managing Director of Net Avenue Technologies.

Financial Implications

The court order specifies the financial liabilities to be settled by the company. The breakdown of the payment is as follows:

Net Avenue Technologies reported a consolidated net loss of ₹11,790 thousand for the half year ended September 30, 2025, narrowing from a loss of ₹22,153 thousand in the corresponding period of the previous year. Revenue from operations for the period stood at ₹1,16,869 thousand. The company's Board of Directors approved the unaudited standalone and consolidated financial results for the half year ended September 30, 2025, at a meeting held on November 13, 2025.

The Board appointed RONAK JAIN & CO, Chartered Accountants, as the internal auditors of the company effective November 13, 2025. The firm consists of two partners, Ronak Jain and Rajni Jain, with expertise in audit, assurance, and taxation. The disclosure regarding the appointment was made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

Financial Performance

The standalone financial results showed a net loss of ₹6,341 thousand for the half year ended September 30, 2025, compared to a loss of ₹14,733 thousand in the year-ago period. Total income decreased to ₹1,15,567 thousand from ₹1,48,627 thousand in the previous corresponding period. The company reported a basic and diluted earnings per share (EPS) of (₹0.30) for the standalone half year.

On a consolidated basis, total income stood at ₹1,19,076 thousand for the half year ended September 30, 2025, against ₹1,48,627 thousand in the same period last year. Total expenses were reported at ₹1,30,866 thousand. The consolidated basic and diluted EPS for the period was (₹0.55).

Business Model Revision

During the period under review, the company revised its business model effective September 01, 2025. Under the new arrangement, the company licenses its platform to its wholly-owned subsidiary, Cbazaar.com INC., located in the USA. The subsidiary will execute customer contracts on behalf of the company. Net revenue is shared in a 25:75 ratio between the company and the subsidiary, respectively. Additionally, the subsidiary pays a platform fee of 20% on net order value from the USA region and reimburses logistics costs incurred by the company.

The company noted that while this change reduces standalone reported revenue, the consolidated level remains unaffected. Approximately 85% of the company's revenue is derived from customers located in the USA. The company also incorporated a foreign subsidiary, Ethnovog International Inc., in the USA during the period, though capital infusion and other approvals were pending as of September 30, 2025.

Auditor's Review

PKF Sridhar & Santhanam LLP, the statutory auditors, reviewed the interim standalone and consolidated financial results. The auditors stated that based on their review, nothing came to their attention that caused them to believe the unaudited financial results contained any material misstatement or failed to disclose required information under Regulation 33 of the SEBI (LODR) Regulations, 2015. The auditors also noted that the comparative financial information for the half year ended March 31, 2025, represents derived figures between audited full-year figures and the half-year ended September 30, 2024.