Sagarsoft FY26 PAT falls to Rs 1.29 crore

Sagarsoft (India) Limited reported a standalone profit after tax of Rs 1.29 crore for the year ended March 31, 2026, a decrease from Rs 3.65 crore in the previous year. The company’s revenue from operations stood at Rs 48.66 crore for the same period, compared to Rs 56.73 crore in FY25.

The board of directors has recommended a dividend of Rs 1.50 per share (15%) on the 63,92,238 equity shares of Rs 10/- each for the financial year 2025-26. This will result in a total outflow of Rs 95.88 lakhs. The record date for determining dividend entitlement has been fixed as July 3, 2026.

On a consolidated basis, the company reported a net loss of Rs 14.94 crore for FY26, compared to a profit of Rs 5.42 crore in the previous year. Consolidated revenue from operations increased to Rs 164.40 crore from Rs 142.36 crore in FY25. The consolidated financial statements include the performance of subsidiaries IT CATS LLC, USA, Sapplica INC, Elite Computer Consultants LP, and Sarral Global INC.

The net worth of the company as at March 31, 2026, was Rs 5,681.37 lakhs, compared to Rs 5,660.71 lakhs at the end of the previous financial year. The company’s paid-up capital remained unchanged at Rs 6,39,22,380, consisting of 63,92,238 equity shares of Rs 10/- each.

Financial Performance

The following table summarizes the standalone financial results for the year ended March 31, 2026:

Particulars	FY26 (Rs in Lakhs)	FY25 (Rs in Lakhs)
Income 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 before tax	182.83	479.74
Profit after tax	128.73	364.86
Earnings per share (Rs)	2.01	5.71

The decrease in profitability was attributed to a reduction in revenue from operations during the year, as major operating costs could not be reduced in the same proportion.

Corporate Governance

The company stated that it has complied with all mandatory requirements specified in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The secretarial audit report did not contain any qualifications, reservations, or adverse remarks. The statutory auditors, M/s. Walker Chandiok & Co LLP, also issued an unqualified report on the financial statements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.94%	+3.26%	+3.40%	-24.14%	-48.65%	-68.85%

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.