Covance Softsol Limited , a prominent player in the IT sector, has reported robust financial results for the quarter and half-year ended September 30, 2025, alongside significant board changes.

Financial Highlights

The company's standalone and consolidated financial results for Q2 FY2026 showcase substantial growth:

Key Financial Insights

• Standalone revenue increased from ₹14.94 crore in the previous quarter to ₹20.05 crore in Q2.
• Consolidated revenue rose from ₹19.59 crore to ₹25.30 crore quarter-on-quarter.
• Net profit after tax on a standalone basis saw a remarkable jump from ₹1.38 crore to ₹15.67 crore.
• Consolidated net profit grew from ₹10.09 crore to ₹15.01 crore.

Board and Committee Changes

The company's board meeting on October 25, 2025, resulted in several key decisions:

1. Rights Issue Committee Dissolution: The committee formed on August 14, 2025, has been dissolved effective October 25, 2025.
2. Director Resignation: Mr. Bhaskar Rao Madala has resigned from his position as Director, effective October 25, 2025 (closing business hours).

Financial Position

As of September 30, 2025:

• Total assets stood at ₹25,295.12 lakh on a consolidated basis.
• The company's equity share capital increased to ₹2,214.55 lakh from ₹1,476.37 lakh as of March 31, 2025.

Recent Corporate Actions

• Covance Softsol completed a rights issue, allotting 7,38,18,040 fully paid-up Equity Shares of face value ₹10 each at ₹10 per Equity Share, aggregating to ₹73,81,80,400.
• This rights issue resulted in an increase in equity share capital by ₹73.82 crore.

Conclusion

Covance Softsol's Q2 FY2026 results demonstrate strong growth in both revenue and profitability. The company's strategic moves, including the rights issue and board changes, indicate a dynamic phase of development. Investors and market watchers may want to closely monitor the company's performance in the coming quarters to assess the impact of these developments.

Covance Softsol Limited has announced a crucial Rights Issue Committee meeting scheduled for August 21, 2025, to finalize the terms of its upcoming rights issue. The meeting will determine key aspects of the offering, including the issue price and entitlement ratio for fully paid-up equity shares with a face value of Rs. 10.00 each.

Rights Issue Details

The rights issue, which was initially approved by the company's board on August 14, 2025, aims to offer additional shares to eligible equity shareholders. This move is often seen as a way for companies to raise capital while giving existing shareholders the opportunity to maintain their proportional ownership.

Committee Meeting Agenda

The Rights Issue Committee will convene to discuss and decide on several critical elements:

1. Issue Price: The price at which new shares will be offered to existing shareholders.
2. Entitlement Ratio: The number of new shares that existing shareholders can subscribe to for each share they currently hold.
3. Other Modalities: Additional terms and conditions related to the rights issue.

Regulatory Compliance

In adherence to insider trading regulations and the company's Code of Conduct for Prevention of Insider Trading, Covance Softsol has implemented the following measures:

• The trading window for company securities will remain closed until 48 hours after the conclusion of the committee meeting.
• This closure is in compliance with the Securities and Exchange Board of India (SEBI) Prohibition of Insider Trading Regulations, 2015.

Company Information

Covance Softsol Limited, with its registered office in Hyderabad, operates under the CIN: L62011TS2023PLC175979. The company specializes in software solutions.

Investors and market participants are advised to await the outcome of the August 21 meeting for further details on the rights issue. The company is expected to make additional disclosures following the committee's decisions, which will provide more clarity on the terms of the offering and its potential impact on shareholders.