Panabyte Technologies Limited reported a widened net loss for the first quarter of FY26, driven by a sharp contraction in revenue and persistent operating deficits. The company posted a standalone net loss of ₹21.11 lakh for the quarter ended June 30, 2026, compared to a loss of ₹13.09 lakh in the same period last year.

The Board of Directors approved the unaudited financial results on August 12, 2026. The statutory auditors, KPB & Associates, issued a limited review report with an unmodified opinion on the standalone results.

Financial Performance

Revenue from operations fell significantly year-on-year, reflecting a challenging business environment for the Thane-based technology firm.

Total income for the quarter was ₹92.49 lakh, down from ₹193.58 lakh in Q1FY25. While revenue declined by over 54%, total expenses decreased by a lesser margin of 41.4% to ₹124.23 lakh, resulting in an operating deficit before tax of ₹31.75 lakh.

Cost Structure and Tax Benefit

Employee benefits expense remained the largest cost component at ₹62.44 lakh, slightly up from ₹53.18 lakh in the previous year’s quarter. Purchases of stock-in-trade dropped to ₹39.60 lakh from ₹97.28 lakh, while changes in inventories provided a credit of ₹5.84 lakh compared to a debit of ₹22.68 lakh in Q1FY25.

Finance costs increased marginally to ₹11.30 lakh from ₹10.63 lakh. Depreciation and amortisation expenses rose slightly to ₹4.12 lakh.

The company recorded a deferred tax benefit of ₹10.64 lakh, reducing the pre-tax loss of ₹31.75 lakh to the final net loss of ₹21.11 lakh. In the prior year’s quarter, the deferred tax benefit was ₹5.21 lakh against a pre-tax loss of ₹18.31 lakh.

What the Numbers Show

The divergence between revenue decline and expense reduction highlights structural cost pressures. While revenue contracted by 54.2%, total expenses fell only 41.4%. This mismatch indicates that fixed or semi-fixed costs, particularly employee benefits which actually increased year-on-year, are not scaling down proportionally with top-line shrinkage. Consequently, the operating loss before tax widened by 73.4% to ₹31.75 lakh, demonstrating that the current cost base is unsustainable at the prevailing revenue levels without further operational adjustments.

Regulatory and Other Disclosures

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS). Segment information is not applicable for the quarter.

The company disclosed a contingent liability related to an Income Tax Department assessment for the financial year 2018-19. The department raised a total demand, including interest, of ₹11.89 lakh. Panabyte Technologies has preferred an appeal against this assessment order before the Commissioner of Income Tax (Appeals).

Panabyte Technologies reported a net profit of ₹12.13 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹9.15 lakh in the previous year. The company’s revenue from operations for the year rose to ₹875.12 lakh from ₹832.79 lakh in FY25. For the quarter ended March 31, 2026, the company recorded a net loss of ₹13.09 lakh, while revenue stood at ₹225.25 lakh. The audited financial results were published in newspapers on May 28, 2026, pursuant to Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026. The statutory auditors, M/s. KPB & Associates, issued an audit report with an unmodified opinion on these results. The certification confirmed that the financial results do not contain any material misstatements.

Financial Performance

The company’s total income for FY26 increased to ₹902.93 lakh from ₹859.08 lakh in the prior year. Total expenses for the year were ₹872.17 lakh, up from ₹846.28 lakh in FY25. The profit before tax for the year was ₹20.91 lakh, compared to ₹12.80 lakh in the previous year.

For the quarter ended March 31, 2026, total income was ₹232.37 lakh against total expenses of ₹238.89 lakh, resulting in a loss before tax of ₹16.36 lakh. The exceptional items for the quarter included a loss of ₹9.84 lakh, representing a one-time recognition of past service cost relating to gratuity liability based on actuarial valuation due to the new Labour Codes.

Board Appointments

The Board appointed M/s. D. M. Zaveri & Co., Company Secretaries, as the Secretarial Auditor for the financial year 2026-27. Additionally, M/s. Sanket Sangoi & Associates, Chartered Accountants, were appointed as the Internal Auditor for FY27. These appointments were made in compliance with Regulation 30 of the SEBI Listing Regulations and relevant SEBI circulars.

Disclosures

The company disclosed that 1,00,000 equity share warrants lapsed during the quarter ended December 31, 2025, due to non-receipt of the balance subscription amount. The amount of ₹4,95,000 received against these warrants was forfeited and transferred to retained earnings within equity. Furthermore, the Income Tax Department completed an assessment for AY 2019-20, raising a total demand of ₹11,89,700, against which the company has preferred an appeal before the CIT(A).