Vels Film International reported a consolidated net loss of ₹2,204.20 lakh for the financial year ended March 31, 2026, reversing the net profit of ₹4,303.78 lakh recorded in the previous year. The company's revenue from operations fell sharply to ₹157.98 lakh in FY26 from ₹6,874.20 lakh in FY25, primarily due to the deconsolidation of its erstwhile subsidiary, Vels Studios and Entertainment Private Limited, effective March 24, 2025.

The board approved the audited standalone and consolidated financial results on May 30, 2026. S R B R & Associates LLP, the statutory auditors, issued an audit report with an unmodified opinion on the financial results for the year ended March 31, 2026. The company clarified to the National Stock Exchange of India Limited (NSE) that consolidated figures were not submitted earlier as the requirement became applicable only from FY26 following the acquisition of Vels D Studio LLP in November 2025.

Standalone Financial Performance

On a standalone basis, the company reported a net loss of ₹2,193.72 lakh for FY26, compared to a net profit of ₹1,360.19 lakh in the previous year. Total income decreased to ₹301.23 lakh from ₹5,976.72 lakh in FY25. The basic and diluted earnings per share (EPS) stood at a loss of ₹17.00 for FY26, down from an EPS of ₹10.54 in the prior year.

The statement of assets and liabilities as of March 31, 2026, showed total assets of ₹40,187.40 lakh, an increase from ₹20,131.30 lakh in the previous year. Current liabilities rose to ₹29,807.60 lakh from ₹8,931.76 lakh, driven by an increase in short-term borrowings and other current liabilities.

Consolidated Financial Results

The consolidated financial results include the performance of the subsidiary Vels D Studio LLP. The group reported a total income of ₹307.64 lakh for FY26, significantly lower than the ₹9,195.18 lakh reported in the previous year. Expenses for the year stood at ₹2,349.20 lakh, compared to ₹9,580.40 lakh in FY25.

Operational and Cash Flow Details

The company's cash and cash equivalents decreased to ₹208.09 lakh as of March 31, 2026, from ₹2,370.62 lakh in the previous year. The net cash used in operating activities was ₹2,575.46 lakh, while investing activities resulted in a net outflow of ₹823.74 lakh. Financing activities provided a net inflow of ₹1,236.66 lakh.

No dividends were declared during the year by the company. The management noted that the segment reporting under Accounting Standard 17 does not apply as the company operates in a single business segment of film production, distribution, and exhibition.

Vels Film International has extended the timeline for its proposed acquisition of KL Software Technologies Private Limited. The company now expects the transaction to be completed on or before August 31, 2026, following an additional period of two months. The acquisition involves the purchase of 6,000 equity shares of ₹10 each.

The Board of Directors had previously reviewed the proposal during its meeting held on May 30, 2026. The extension was communicated to the National Stock Exchange of India Limited (NSE) on June 29, 2026, in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Acquisition

The following table outlines the primary details of the proposed transaction:

All other disclosures and details provided in the earlier communication dated May 30, 2026, specifically in "Annexure B", remain unchanged. The company stated that the extension is necessary to finalize the remaining procedural formalities associated with the acquisition.