Southern Infoconsultants reports net loss for FY26
Southern Infoconsultants Limited posted a net loss of ₹15.33 lakh for FY26, reversing a net profit of ₹27.06 lakh in the previous fiscal year, as revenue from operations declined to ₹1,071.27 lakh. The auditors issued a qualified opinion due to the company's failure to provide for gratuity under the Payment of Gratuity Act, 1972, and noted unsupported work-in-progress inventory of ₹443.89 lakh. For the quarter ended March 31, 2026, the company recorded a net profit of ₹2.35 lakh on revenue of ₹300.42 lakh.
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Southern Infoconsultants Limited reported a net loss of ₹15.33 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹27.06 lakh in the previous year. Revenue from operations for the year stood at ₹1,071.27 lakh, a decline from ₹1,304.97 lakh in FY25. The board approved the audited standalone and consolidated financial results at its meeting held on May 28, 2026.
Auditor's Observations
Mukesh Aggarwal & Co., Chartered Accountants, issued a qualified opinion on the standalone and consolidated annual financial results. The qualification arises because the company did not make provision for gratuity as required under the Payment of Gratuity Act, 1972, and Ind AS 19. The auditors stated they are unable to ascertain the financial implication of this non-provision, noting that net loss and provisions are understated while cumulative net profits are overstated to that extent.
The auditors also drew attention to emphasis of matter paragraphs regarding trade receivables and payables, which are subject to confirmation and reconciliation, and the identification of MSME vendors. Additionally, the company recorded work-in-progress inventory of ₹443.89 lakh as of March 31, 2026, without providing supporting documents for the recognition and subsequent charges to the profit and loss statement.
Financial Performance
For the quarter ended March 31, 2026, the company reported a net profit of ₹2.35 lakh on revenue from operations of ₹300.42 lakh. In the corresponding quarter of the previous year, the net profit was ₹9.37 lakh on revenue of ₹501.23 lakh. Total income for the quarter ended March 31, 2026, was ₹305.58 lakh, while total expenses stood at ₹302.20 lakh.
| Particulars | Year Ended March 31, 2026 (₹ in Lakhs) | Year Ended March 31, 2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 1,071.27 | 1,304.97 |
| Total Income | 1,091.73 | 1,333.56 |
| Total Expenses | 1,103.72 | 1,287.95 |
| Net Profit/(Loss) | (15.33) | 27.06 |
| Earnings Per Share (Basic) | (0.31) | 0.54 |
Consolidated Results
On a consolidated basis, the company reported a net loss of ₹12.34 lakh for FY26, compared to a net profit of ₹26.46 lakh in the previous year. Total consolidated income for the year was ₹1,091.73 lakh. The board appointed Mr. D.K. Shrivastava as the Internal Auditor for the financial year 2025-2026.
Historical Stock Returns for Southern Infoconsultants
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.14% | -5.03% | -11.98% | -11.00% | +1.89% | +28.15% |
What specific measures will management take to address the auditor's qualified opinion regarding the non-provision of gratuity?
How does the company plan to reduce the significant work-in-progress inventory backlog given the lack of supporting documentation?
Will the decline in revenue from operations continue into FY27, or are there new contracts in the pipeline to reverse this trend?
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