Synoptics Technologies Limited reported a net profit of ₹4.09 crore for the financial year ended March 31, 2026, compared to ₹4.04 crore in the previous year. Revenue from operations rose to ₹57.05 crore from ₹43.27 crore in FY25. The company's board approved the audited standalone and consolidated financial results at a meeting held on May 28, 2026.

For the half year ended March 31, 2026, the company recorded a net profit of ₹68.83 lakh on revenue of ₹27.41 crore. Total expenses for the full year increased to ₹50.32 crore from ₹35.30 crore in the prior year. Finance costs for FY26 stood at ₹2.33 crore, slightly lower than ₹2.46 crore in the previous year.

The earnings per share (EPS) for the full year remained stable at ₹4.83, compared to ₹4.77 in the previous year. The company's paid-up equity share capital remained unchanged at ₹8.48 crore. Reserves and surplus increased to ₹652.74 crore as of March 31, 2026, from ₹613.62 crore a year earlier.

Financial Performance

The following table summarizes the key financial metrics for Synoptics Technologies Limited for the financial year ended March 31, 2026:

Assets and Liabilities

The total assets of the company stood at ₹1,209.88 crore as of March 31, 2026, up from ₹1,137.99 crore in the previous year. Non-current assets were valued at ₹498.80 crore, while current assets stood at ₹711.08 crore. The company's cash and cash equivalents increased to ₹3.58 crore from ₹3.00 crore in the prior year.

On the liabilities side, shareholders' funds rose to ₹737.54 crore from ₹698.42 crore. Current liabilities decreased to ₹360.12 crore from ₹344.37 crore. Long-term borrowings increased to ₹107.05 crore from ₹92.33 crore.

Auditor's Report

Yogesh J. Walavalkar & Co., Chartered Accountants, audited the standalone and consolidated financial results. The auditor issued an unmodified opinion on the financial statements. The report highlighted an interim order issued by the Securities and Exchange Board of India (SEBI), restraining the promoters and the company from dealing in the securities market until further orders. The auditor stated that this matter did not modify their opinion.

The Securities and Exchange Board of India (Sebi) has upheld its market ban on Synoptics Technologies and its promoters amid an ongoing investigation into alleged siphoning of Initial Public Offering (IPO) proceeds. The regulatory action extends to promoters Jatin Shah, Jagmohan Manilal Shah, and Janvi Jatin Shah.

Allegations of Fund Misuse

Sebi's investigation uncovered that Rs 19.00 crore was transferred under the guise of 'issue management fees, underwriting and selling commissions, registrar fees, and other IPO related expenses.' This amount significantly exceeded the Rs 0.80 crore disclosed as issue expenses in the company's red herring prospectus.

Scale of Discrepancy

The alleged misused funds represent:

• Over 54% of the Rs 35.08 crore raised through fresh share issuance
• Approximately 35% of the total Rs 54.04 crore issue size

Regulatory Actions

In addition to the market ban on Synoptics Technologies and its promoters, Sebi has taken action against the IPO's lead manager:

• First Overseas Capital Ltd (FOCL), which served as the lead manager for the IPO, has been barred from taking on new merchant banking assignments.

Background of the IPO

Synoptics Technologies raised funds through a Small and Medium Enterprise (SME) IPO in July 2023. The IPO process was managed by FOCL as the lead manager.

Trigger for Investigation

Sebi's actions follow complaints about irregularities in the bidding process after the closure of the IPO. These complaints prompted the regulator to scrutinize the company's financial dealings related to the public offering.

The case underscores the importance of transparency and adherence to regulatory disclosures in the IPO process, particularly in the SME segment. As the investigation continues, market participants will be watching closely for any further developments and potential implications for SME listings in India.