Virinchi reports FY26 net loss of ₹273.87 crore
Virinchi Limited reported a consolidated net loss of ₹273.87 crore for FY26, reversing the previous year's profit, with revenue declining to ₹286.13 crore due to a one-time receivable write-off. The SaaS and Healthcare segments saw mixed performance, while auditors flagged outstanding statutory dues of approximately ₹274.02 crore.
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Virinchi Limited reported a consolidated net loss of ₹273.87 crore for the financial year ended March 31, 2026, reversing the net profit of ₹0.48 crore recorded in the previous year. Revenue from operations for the year declined 7.19% to ₹286.13 crore from ₹308.30 crore in FY25, primarily impacted by a one-time, fully-provided write-off of ₹8.43 crore on the QC Holdings receivable. On a standalone basis, the company reported a net profit of ₹139.78 crore for FY26, a decrease from ₹160.40 crore in the prior year.
The Board of Directors approved the audited standalone and consolidated financial results for the fourth quarter and year ended March 31, 2026. The statutory auditors, M/s. P. Murali & Co., issued an unmodified opinion on the financial results. The company submitted the management update to the exchanges on May 31, 2026.
Financial Performance
For the quarter ended March 31, 2026, the consolidated net loss stood at ₹156.85 lakh, compared to a loss of ₹44.18 lakh in the same period last year. Total income from operations for the quarter was ₹67.31 crore. The standalone entity reported a net loss of ₹81.03 lakh for Q4FY26, compared to a profit of ₹17.08 lakh in Q4FY25.
| Particulars (₹ in Crs) | Q4FY26 | Q4FY25 | Change | FY26 | FY25 | Change |
|---|---|---|---|---|---|---|
| Net Sales | 44.45 | 38.14 | 16.55% | 183.38 | 153.41 | 19.53% |
| EBITDA | 8.78 | 23.07 | -61.94% | 49.40 | 45.47 | 8.64% |
| EBITDA Margin | 19.75% | 60.49% | -4074bps | 26.94% | 29.64% | -270bps |
| PAT | -8.10 | 1.71 | -574.30% | 13.98 | 16.04 | -12.85% |
| PAT Margin | -18.23% | 4.48% | -2271bps | 7.62% | 10.45% | -283bps |
Segment Results
The company operates across four major segments: SaaS Business, IDC & IT Services, Health Care Services, and Payment & Credit Services. The SaaS Business reported revenue of ₹153.94 crore for the year, while Health Care Services contributed ₹79.99 crore. The IDC & IT Services segment recorded revenue of ₹40.37 crore. Segment results before interest and tax showed a decline in the SaaS Business, which reported a profit of ₹13.18 crore compared to ₹19.84 crore in the previous year.
| Segment | Revenue FY26 (₹ in Crs) | Revenue FY25 (₹ in Crs) |
|---|---|---|
| SAAS Business | 153.94 | 133.37 |
| Health Care Services | 79.99 | 104.15 |
| IDC & IT Services | 40.37 | 57.30 |
| IT Enabled Services | 10.07 | 6.10 |
| Payment & Credit Services | - | 0.21 |
Auditor's Emphasis of Matter
The statutory auditors drew attention to the fact that the company has not been regular in depositing certain undisputed statutory dues, including Provident Fund, Employees' State Insurance, Professional Tax, Tax Deducted at Source (TDS), and Income Tax. These outstanding dues as of March 31, 2026, total approximately ₹274.02 crore on a consolidated basis. Additionally, there are income tax liabilities in dispute amounting to ₹106.57 crore for assessment years 2017-18 and 2022-23. The auditors stated that the eventual outcome of any proceedings or penalties is uncertain but noted that their opinion is not modified in respect of this matter.
Capital Structure
During the quarter ended March 31, 2026, the company allotted 61,50,000 equity shares pursuant to the conversion of warrants issued on a preferential basis. The paid-up share capital as of March 31, 2026, stood at 10,879.69 lakh units. The company's cash and cash equivalents increased to ₹86.59 crore on a consolidated basis at the end of FY26 from ₹77.58 crore in the previous year.
Historical Stock Returns for Virinchi
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.24% | +10.62% | +2.74% | -21.39% | -19.05% | -53.46% |
What is the management's roadmap for clearing the ₹274.02 crore in undisputed statutory dues highlighted by the auditors?
How will the company address the decline in profitability within its core SaaS Business segment moving forward?
What strategic measures will be implemented to prevent further revenue erosion in the Health Care Services and IDC & IT Services segments?
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