Odyssey Technologies Limited reported a net profit of ₹21.56 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a 60% decline from the ₹53.85 lakh recorded in the corresponding quarter of FY25. The Chennai-based software product license and services provider saw its revenue from operations contract to ₹573.55 lakh in Q1FY26, down from ₹601.21 lakh in Q1FY25. This top-line contraction, coupled with rigid cost structures, significantly impacted profitability, with profit before tax falling to ₹29.78 lakh from ₹72.98 lakh year-on-year.

The Board of Directors approved the unaudited standalone financial results during a meeting held on July 29, 2026, at the company’s registered office in Chennai. The results were prepared in compliance with Ind-AS and subjected to a limited review by M/s. Sekar & Co., Chartered Accountants, Chennai (Firm Registration No. 016269S), who serve as the statutory auditors. The Audit Committee reviewed the financial statements before placing them before the Board for approval, in accordance with Regulations 30 and 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

Total income for the quarter stood at ₹643.80 lakh, comprising ₹573.55 lakh from operations and ₹70.25 lakh from other income. Total expenses amounted to ₹614.02 lakh, with employee benefits expense being the largest component at ₹475.83 lakh. Depreciation and amortisation expenses were recorded at ₹35.71 lakh, while other expenses totalled ₹102.48 lakh.

Earnings per equity share (basic) stood at ₹0.14 for the quarter, down from ₹0.34 in Q1FY25. The diluted EPS was also ₹0.14. For the full fiscal year FY25, the company reported a net profit of ₹402.33 lakh on revenue of ₹2,730.18 lakh.

What the Numbers Show

The divergence between revenue decline and expense stability highlights margin pressure for Odyssey Technologies. While revenue from operations fell by approximately 4.6% year-on-year, employee benefits expenses remained nearly flat at ₹475.83 lakh against ₹474.37 lakh in the prior year quarter. This rigidity in cost structure, combined with lower operating leverage, resulted in a sharper contraction in profit before tax, which dropped by nearly 59%. The company’s reliance on software product licenses means that even modest dips in deal flow or renewal rates can significantly impact bottom-line outcomes when fixed costs remain high.

Auditor’s Report and Compliance

Sekar & Co., Chartered Accountants, issued their independent auditor’s review report pursuant to Regulation 33 of the SEBI Listing Regulations and SEBI Circular No. CIR/CFD/CMD1/80/2019 dated July 19, 2019. Based on their review conducted in accordance with Standard on Review Engagements (SRE) 2410, the auditors stated that nothing came to their attention to cause them to believe that the statement did not disclose the required information or contained material misstatements. The company confirmed that the trading window for dealing in its securities would open after 48 hours from the conclusion of the board meeting.

Odyssey, an AI lab pioneering world models founded by self-driving car veterans, announced a $310 million Series B funding round at a $1.45 billion valuation. Natural Capital led the investment, with participation from Amazon, AMD Ventures, GV, EQT, and In-Q-Tel (IQT). The capital will accelerate the company's research and broader deployment of its world model technology.

The funding round also saw participation from existing investors, including Jeff Dean, Google's chief scientist; Elad Gil; Qasar Younis, co-founder and CEO of Applied Intuition; Garry Tan, president and CEO of Y Combinator; Guillermo Rauch, founder and CEO of Vercel; and Kyle Vogt, founder of Cruise. This marks Natural Capital's largest investment to date, reflecting deep conviction in Odyssey's technical leadership and execution.

Strategic Cloud Partnership

Odyssey has entered a strategic agreement with Amazon Web Services (AWS), designating AWS as its preferred cloud provider. As a leading world model provider, Odyssey requires compute infrastructure designed for speed and quality. The company will utilize AWS Trainium chips, which are purpose-built to deliver performance advantages in price and efficiency. The two companies will collaborate on future research and go-to-market efforts to make these use cases more accessible to customers.

"World models represent one of the most demanding workloads in AI—they require massive compute throughput with tight latency constraints," said Ron Diamant, Vice President and Distinguished Engineer at Amazon. "Trainium is purpose-built for exactly this kind of scale."

Research Milestones

Over the last three years, Odyssey has advanced research in general world simulation. The company's portfolio includes Odyssey-2 Max, which advanced the state-of-the-art in physics-accuracy; Starchild-1, the first real-time multimodal world model; Agora-1, which launched multi-agent interaction within a shared world simulation; and PROWL, demonstrating how world models can improve through active exploration.

"We believe world models represent a new class of foundation model—AI that can understand and simulate the world itself," said Oliver Cameron, Co-Founder and CEO of Odyssey. "This round provides the compute, infrastructure, and partners to push the frontier of general world models."

Key Investment Details