Sagarsoft FY26 net profit falls 65% to ₹128.73 lakh
Sagarsoft (India) Limited reported a 65% decline in standalone net profit to ₹128.73 lakh for FY26, with revenue falling 14% to ₹4,865.75 lakh. The company posted a consolidated net loss of ₹1,493.63 lakh, impacted by an impairment loss of ₹335.81 lakh from the acquisition of Elite Computer Consultants, L.P. USA. The Board recommended a final dividend of ₹1.5 per share.
*this image is generated using AI for illustrative purposes only.
Sagarsoft (India) Limited reported a 65% decline in standalone net profit to ₹128.73 lakh for the financial year ended March 31, 2026, compared to ₹364.86 lakh in the previous year. The company's revenue from operations fell 14% to ₹4,865.75 lakh from ₹5,672.52 lakh in FY25. The Board of Directors has recommended a final dividend of ₹1.5 per equity share, subject to shareholder approval at the ensuing Annual General Meeting.
Standalone Financial Performance
For the quarter ended March 31, 2026, the company reported a net loss of ₹141.92 lakh, a reversal from the profit of ₹49.98 lakh recorded in the same quarter of the previous year. Revenue for the quarter stood at ₹923.59 lakh, down from ₹1,233.08 lakh in Q4FY25. Total income for the year decreased to ₹5,205.03 lakh from ₹5,945.31 lakh in the prior year.
Total expenses for FY26 amounted to ₹5,022.20 lakh, slightly lower than the ₹5,465.57 lakh recorded in FY25. Employee benefits expenses decreased to ₹3,545.01 lakh from ₹4,005.29 lakh. The company recorded a profit before tax of ₹182.83 lakh for the year, significantly lower than the ₹479.74 lakh reported in the previous year.
| Metric | FY26 (₹ in lakh) | FY25 (₹ in lakh) |
|---|---|---|
| Revenue from operations | 4,865.75 | 5,672.52 |
| Total income | 5,205.03 | 5,945.31 |
| Total expenses | 5,022.20 | 5,465.57 |
| Profit for the period | 128.73 | 364.86 |
| Earnings per share (Basic) | 2.01 | 5.71 |
Consolidated Results and Acquisition Impact
On a consolidated basis, the group reported a net loss of ₹1,493.63 lakh for FY26, compared to a net profit of ₹541.82 lakh in the previous year. Consolidated revenue from operations rose to ₹16,440.08 lakh from ₹14,235.85 lakh. The results include the financial impact of the acquisition of Elite Computer Consultants, L.P. USA by the company's wholly-owned subsidiary IT CATS LLC in February 2025. Consequently, the group recognized an impairment loss of ₹335.81 lakh pertaining to the customer contract acquired.
The group's total expenses increased to ₹18,154.06 lakh from ₹13,623.62 lakh, driven by higher employee benefits expenses and outsourcing costs. The net loss attributable to shareholders of the holding company stood at ₹749.47 lakh for the year. Earnings per share on a consolidated basis were negative at ₹11.72 for FY26.
Contract Remeasurement and Dividend
During the quarter ended March 31, 2026, the company remeasured a fixed price contract with its subsidiary IT CATS LLC following amendments to the contract with the end customer. The contract value was revised to US$ 1,128,969 from the original US$ 1,446,710. This resulted in an accounting impact of ₹154.73 lakh, which was recorded as contract cost during the quarter.
The Board of Directors recommended a final dividend of 15%, or ₹1.5 per equity share of face value ₹10 each, for the financial year ended March 31, 2026. The statutory auditors, Walker Chandiok & Co LLP, expressed an unmodified opinion on both the standalone and consolidated financial results.
Fund Utilization
The company submitted a statement of utilization of funds raised through a preferential issue of 2,00,000 equity shares at ₹254 per share on July 26, 2021, totaling ₹5.08 crore. As of March 31, 2026, the entire amount was utilized, with ₹1.18 crore used for working capital requirements and the remaining ₹3.90 crore kept in fixed deposits. There was no deviation in the utilization of funds.
Historical Stock Returns for Sagarsoft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.20% | +2.81% | -11.83% | -36.20% | -54.03% | -65.70% |
What strategic measures will management implement to reverse the consolidated net loss and improve margins in FY27?
How does the company plan to mitigate further financial risks following the impairment loss and contract remeasurement with IT CATS LLC?
Will the company pursue further acquisitions similar to Elite Computer Consultants, or focus on integrating existing operations?
15
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
