WeP Solutions informed the BSE that Mr. Grama Hiriyanaiiah Visweswara will cease to hold office as an Independent Director upon completion of his term. The change takes effect from the close of business hours on September 19, 2026.

The company made the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by Ankita Karnani, Company Secretary and Compliance Officer, on September 16, 2026.

Board Composition Update

Mr. Visweswara (DIN: 00662212) served as an Independent Director until the specified date. The cessation is due to the natural completion of his tenure rather than resignation or removal. No new appointment details were provided in this specific intimation.

The disclosure aligns with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

WeP Solutions reported a 45% decline in net profit for the financial year ended March 31, 2026, driven by rising depreciation and finance costs that outpaced revenue growth. The Bengaluru-based enterprise services provider posted a net profit of ₹2.19 crore for FY26, down from ₹3.99 crore in the previous year.

Revenue from operations rose 4.8% year-on-year to ₹67.91 crore, supported by growth in both its Enterprise and Partner business segments. However, the top-line expansion was insufficient to offset a sharp increase in non-operating expenses, leading to a significant contraction in profitability metrics.

Financial Performance

The company's total income stood at ₹69.60 crore in FY26, compared to ₹66.39 crore in FY25. Revenue from operations contributed ₹67.91 crore, while other income added ₹1.69 crore. Despite the revenue uptick, earnings before interest and taxes (EBIT) fell sharply to ₹4.66 crore from ₹7.00 crore last year.

Depreciation and amortization expenses surged 24.2% to ₹12.02 crore, primarily due to higher amortization of right-of-use assets and property, plant, and equipment. Finance costs also increased significantly by 53.2% to ₹2.05 crore, reflecting higher interest expenses on borrowings.

Segmental Insights

The Enterprise Business segment, which includes managed printing services and IT infrastructure management, generated revenue of ₹50.19 crore, up 4.2% from ₹48.15 crore in FY25. The Partner Business segment, focused on retail billing solutions and product distribution, saw revenue grow 6.5% to ₹17.72 crore from ₹16.64 crore.

Operating margins contracted substantially during the period. The operating margin ratio declined to 6.86% in FY26 from 10.85% in FY25. Similarly, the net profit margin halved to 3.0% from 6.2% in the previous fiscal year.

What the Numbers Show

A key divergence in the financials is the stability of cash operating profits against the collapse in accrual-based profitability. While EBITDA remained nearly flat at ₹16.68 crore, the bottom line suffered disproportionately due to fixed cost inflation. Depreciation and finance costs combined to consume ₹14.07 crore of operating profits, leaving a thin buffer for taxes and final net income. This indicates that while the core operations generated stable cash flows, the capital structure and asset base became more expensive to maintain, eroding shareholder value in the short term.

Corporate Actions

The Board of Directors recommended a final dividend of ₹0.50 per equity share for FY26, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The AGM is scheduled for September 16, 2026, where shareholders will also vote on the reappointment of directors and the approval of the Employee Stock Option Plan 2026.

The company also announced changes in its board composition, including the appointment of Dr. Gaurav Nigam as Whole Time Director designated as Senior Executive Director. Additionally, the board approved the creation of up to 15 lakh options under the new ESOP scheme to attract and retain talent.