HCL Infosystems Limited , a prominent player in the IT system integration and solutions sector, has reported its financial results for the first half of the fiscal year 2026, revealing ongoing challenges and a significant arbitration development.

Financial Performance

For the six months ended September 30, 2025, HCL Infosystems reported a net loss of Rs 1,049.00 lakhs, showing a slight improvement from the Rs 1,251.00 lakhs loss in the same period last year. The company's quarterly performance also reflected this trend, with a loss of Rs 621.00 lakhs in Q2 FY26 compared to Rs 428.00 lakhs in Q2 FY25.

Key Financial Metrics

The company's revenue from operations stood at Rs 75.00 lakhs for the quarter and Rs 188.00 lakhs for the half-year. However, HCL Infosystems continues to face financial strain, with current liabilities exceeding current assets by Rs 45,982.00 lakhs as of September 30, 2025.

Arbitration Award

In a positive development, HCL Infosystems received a final arbitration award of Rs 10,281.00 lakhs against a contract with the Unique Identification Authority of India (UIDAI). This award includes Rs 3,379.00 lakhs in interest and covers claims related to arbitrary deductions by UIDAI, additional costs incurred by the company, and the market value of services rendered during an extended contract period from August 7, 2019, to August 6, 2021.

It's important to note that while this award is significant, its financial impact has not been recognized in the current results. The company states that this is due to the possibility of challenges to the award within a specified period.

Ongoing Challenges and Support

HCL Infosystems has been facing continuous losses for several years, resulting in a fully eroded net worth. To address these challenges, HCL Corporation Private Limited, a significant promoter shareholder, has approved financial support including:

• Corporate guarantees of Rs 44,600.00 lakhs
• Interest-free unsecured loans of Rs 35,500.00 lakhs

Additionally, HCL Capital Private Limited has approved support up to Rs 1,50,000.00 lakhs in various forms, as approved by shareholders on September 17, 2025.

Auditor's Statement

The company's auditors have issued an unmodified review report but highlighted material uncertainty about HCL Infosystems' ability to continue as a going concern. This uncertainty stems from the company's continuous losses and fully eroded net worth.

As HCL Infosystems navigates these financial challenges, the management remains focused on realizing assets, discharging contractual obligations, and leveraging the support from its promoter companies to maintain business continuity.

HCL Infosystems Limited , a prominent player in the Indian IT sector, has received a significant tax demand from the Haryana state authorities. The company disclosed this development in a recent regulatory filing, shedding light on the financial implications and the company's response to the situation.

Tax Demand Details

HCL Infosystems received a demand order in Form GST DRC-07A from the Excise and Taxation Officer of Haryana. The order confirms a demand of INR 1.23 crores, which the authorities claim is recoverable under Section 142 of the Central Goods and Services Tax (CGST) Act, 2017.

Nature of the Demand

The tax demand relates to alleged non-payment of dues from the pre-GST period, specifically covering April 2012 to March 2016, under the Haryana Value Added Tax (VAT) Act, 2003. This highlights the ongoing process of reconciling tax matters from the pre-GST era with the current tax regime.

Company's Response

HCL Infosystems has stated that it is currently evaluating the order and examining appropriate legal remedies in accordance with the law. The company's approach suggests a careful consideration of its options before deciding on the next course of action.

Potential Impact

The immediate financial impact is quantified at INR 1.23 crores. However, the broader implications for HCL Infosystems remain to be seen. The company has not provided specific details on how this demand might affect its financial operations or other activities.

Upcoming Board Meeting

In a separate announcement, HCL Infosystems has scheduled a board meeting. The meeting agenda includes:

1. Consideration and approval of unaudited financial results for Q2
2. Discussion on raising funds through private placement of unlisted, unsecured non-convertible debentures

This board meeting, while not directly related to the tax demand, indicates that the company is actively managing its financial strategies and obligations.

Conclusion

As HCL Infosystems navigates this tax demand, stakeholders will be keenly watching how the company addresses this issue and its potential impact on the company's financial health. The outcome of the company's evaluation and any subsequent legal actions could have implications for both HCL Infosystems and potentially other companies facing similar retrospective tax demands in the transition to the GST regime.