RNIT AI Solutions Limited reported a net profit of ₹1.27 crore for the quarter ended June 30, 2026, marking a 53.7% increase from ₹82.43 lakh in the same period last year. Revenue from operations rose 25.7% to ₹7.85 crore, up from ₹6.25 crore in Q1FY25, driven by growth in its software development and AI design segments. The company’s Board of Directors approved the unaudited financial results on July 29, 2026, alongside a limited review report issued by statutory auditors M S P R & Co.

The Board also approved requests from three promoter group members to reclassify their shareholdings to the "Public" category under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This reclassification is subject to approval by BSE Limited. The applicants—Vivek Kumar Ratakonda, Venkateswara Prasad Ratakonda, and Vinayak Talwar—confirmed they do not exercise control over the company or hold more than 10% of voting rights collectively.

Financial Performance

Revenue from operations stood at ₹7.85 crore, compared to ₹6.25 crore in Q1FY25. Other income contributed ₹3.49 lakh, while total income reached ₹8.20 crore. Operating expenses remained stable at ₹7.00 lakh, but employee benefit expenses increased to ₹23.86 lakh from ₹18.75 lakh year-ago, reflecting higher staffing costs. Finance costs rose to ₹3.63 lakh from ₹1.47 lakh.

Profit before tax was ₹17.32 crore, up from ₹10.90 crore in the prior year quarter. Tax expenses amounted to ₹4.66 crore, including deferred tax provisions. Earnings per share (basic) were ₹0.15, compared to ₹0.11 in Q1FY25.

Shareholding Reclassification

The reclassification of promoter shares aims to simplify ownership structures without altering control dynamics. Vivek Kumar Ratakonda holds 60,000 equity shares (0.07%), while Venkateswara Prasad Ratakonda holds 1,219 shares (0.00%). Vinayak Talwar holds nil shares. The Board confirmed that shareholder approval is not required as the applicants collectively hold less than 1% of total voting rights.

What the Numbers Show

The 53.7% surge in net profit outpaced revenue growth of 25.7%, indicating improved operating leverage. While employee costs rose significantly, the company maintained margin expansion through controlled operating expenses and stable other income contributions. This suggests efficient cost management in its AI and software services verticals.

RNIT AI Solutions has scheduled its 2nd Annual General Meeting (AGM) for July 29, 2026, to seek shareholder approval for shifting its registered office from Rajasthan to Telangana. The meeting will be conducted through Video Conference (VC) or Other Audio Visual Means (OAVM) at 10:30 A.M. IST. This proposal aligns with the company's management and operational functions, which are primarily based in Hyderabad following a change in management and control pursuant to a Resolution Plan approved by the National Company Law Tribunal in September 2024.

The Board of Directors approved the proposal to shift the registered office during its meeting on July 03, 2026. The move requires a special resolution from shareholders and subsequent approvals from the Central Government, Regional Director, and Registrar of Companies. The company stated that the shift would facilitate efficient administration and improve coordination with stakeholders without adversely affecting the rights or interests of members, creditors, or employees.

Ordinary Business

The AGM will transact ordinary business, including the adoption of the audited financial statements for the financial year ended March 31, 2026. Shareholders will also consider the re-appointment of Mr. Raja Srinivas Nandigam, who retires by rotation and is eligible for re-appointment. Mr. Nandigam, who holds 50.10% of the equity shares, was appointed as Managing Director for a term of five years effective December 29, 2025.

E-voting and AGM Details

The company has provided a remote e-voting facility for shareholders. The e-voting period commences on July 26, 2026, at 09:00 A.M. and concludes on July 28, 2026, at 05:00 P.M. The cut-off date for determining shareholder eligibility for e-voting is July 22, 2026. The register of members and share transfer books will remain closed from July 23, 2026, to July 29, 2026, for the purpose of the AGM.

M/s. MVK & Associates, Practicing Company Secretaries, has been appointed as the scrutinizer to conduct the electronic voting process. The facility to appoint a proxy is not available for this meeting, though body corporates may appoint authorized representatives.