Orchasp Limited reported a consolidated net profit of ₹28.00 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a 48% year-on-year decline from ₹54.22 lakh in Q1FY26. The profit contraction followed a sharp 73% drop in revenue from operations, which fell to ₹208.37 lakh from ₹775.19 lakh in the prior year period. While employee benefit expenses decreased significantly to ₹201.34 lakh from ₹671.91 lakh, helping preserve margins, the company’s reliance on other income—surging to ₹63.41 lakh from ₹2.52 lakh—highlighted a divergence between operational performance and total earnings.

The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on August 11, 2026, pursuant to Regulation 30(2) and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. However, statutory auditors JMT & Associates issued a qualified opinion on both sets of results. The qualification stems from material uncertainties regarding the carrying value of overseas investments, the recoverability of long-outstanding receivables, and delays in remitting statutory dues up to July 30, 2026.

Auditor Qualifications

The qualified opinion raised by JMT & Associates centers on three primary areas of concern:

• Non-Operational Subsidiary: The company holds an investment of ₹6,825 lakh in its wholly-owned subsidiary, Cybermate International, Unipessoal, LDA, located in Portugal. The subsidiary has been non-operational for over six years and received a notice of cancellation of its Certificate of Incorporation due to non-compliance with statutory filing requirements. Orchasp Limited has transferred these investments to a new US-based subsidiary, Orchasp Inc, but auditors noted insufficient clarity on the new entity’s financial position to assess impairment provisions.

• Aged Receivables and Payables: Trade receivables and payables have remained outstanding for more than six months. In the absence of confirmations for these balances, along with various advances and loans, auditors could not verify their recoverability or payability.

• Statutory Dues: Management attributed the delay in paying Tax Deducted at Source (TDS) and other statutory dues to temporary liquidity constraints and stated it is taking steps to regularize the outstanding amounts.

Financial Performance Highlights

Note: All figures are consolidated unless specified. EPS is not annualized.

What the Numbers Show

The sharp contraction in revenue from operations was largely offset by a disproportionate drop in employee benefit expenses, which fell by 70% year-on-year. While this cost-cutting measure preserved profitability in absolute terms, the reliance on other income—jumping from ₹2.52 lakh to ₹63.41 lakh—highlights a divergence between operational performance and total earnings. The significant investment in the non-operational Portuguese subsidiary remains a balance sheet overhang, with auditors unable to validate its carrying value amidst ongoing regulatory compliance issues abroad.

Promoters of Orchasp Ltd held an 18.48% stake in the company as on March 31, 2026, according to a regulatory filing. The disclosure, submitted under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, confirms that the promoter group collectively owns 6,40,14,368 equity shares. The filing further states that no shares were encumbered directly or indirectly during the financial year ended March 31, 2026.

Shareholding Breakdown

The shareholding pattern details the individual holdings within the promoter group. Mrs. Rajeswari Pattapurathi holds the largest portion of the promoter stake, followed by Mr. Chandra Sekhar Pattapurathi.

Regulatory Disclosure

The declaration was submitted by Chandra Sekhar Pattapurathi, Promoter, on behalf of the Promoter and Promoter Group. The communication was addressed to the General Manager of BSE Limited and the Manager of the Listing Department at National Stock Exchanges of India Limited. The document confirms the status of the shareholding as of the end of Q4FY26.