IMEC Services Reports Significant Revenue Decline in Q2 2025 Results

IMEC Services Limited , a company listed on the BSE, has reported a substantial decrease in revenue for the quarter and half-year ended September 30, 2025. The unaudited financial results, approved by the company's Board of Directors on November 14, 2025, reveal several key financial metrics that indicate challenges faced by the company during this period.

Revenue and Profitability

The company's revenue from operations saw a dramatic decline compared to the previous year. For the half-year ended September 30, 2025, IMEC Services reported:

Metric	Amount (in ₹ lakhs)	Year-on-Year Change
Revenue from Operations	21.54	↓99.24%
Other Income	10.70	↓79.67%
Total Income	32.24	↓98.70%
Net Loss	(76.61)	N/A (Profit in previous year)

The company attributed this significant reduction in revenue to the completion of certain large service contracts in the prior year.

Expenses and Profitability

Despite the sharp decline in revenue, IMEC Services continued to incur substantial expenses:

Expense Category	Amount (in ₹ lakhs)
Employee Benefits	24.96
Depreciation and Amortization	1.88
Other Expenses	81.99
Total Expenses	108.85

The mismatch between revenue and expenses resulted in a loss before tax of ₹76.61 lakhs for the half-year period.

Auditor's Concerns

The company's auditors, M/s. SCAN & Co. (previously M.S. Singhatwadia & Co.), highlighted two significant concerns in their limited review report:

Professional fees amounting to ₹44.33 lakhs were charged against a revenue of only ₹21.54 lakhs.
Unrealized accounts receivable of ₹20.40 crores from a contract executed in 2023, with only ₹15 lakhs realized over the past nine months.

Balance Sheet Position

As of September 30, 2025, IMEC Services reported:

Metric	Amount (in ₹ lakhs)
Total Assets	2,690.41
Total Equity	2,629.10
Current Liabilities	59.61

Cash Flow

The company's cash flow statement revealed a significant decrease in cash and cash equivalents:

Metric	Amount (in ₹ lakhs)
Net Cash Flow from Operating Activities	(454.91)
Cash & Cash Equivalents at end of the period	5.20

Management Commentary

While specific management commentary was not provided in the financial results, the significant decline in revenue and the concerns raised by auditors suggest that IMEC Services may be facing operational and financial challenges.

Investors and stakeholders will likely be looking for more clarity from the management on the company's strategy to address these issues, including plans to secure new contracts, improve cash flow, and manage expenses in line with the reduced revenue.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.95%	-14.95%	-30.89%	+367.03%	+683.58%	+9,361.13%

IMEC Services Limited , a Mumbai-based company, has reported a substantial loss for the first quarter, marking a stark contrast to its performance in the previous year. The company's financial results, approved by its Board of Directors on August 14, reveal the challenges faced in the aftermath of completing major service contracts.

Financial Performance

IMEC Services experienced a dramatic decline in its revenue from operations, which fell to a mere Rs 0.59 lakh in Q1, compared to Rs 28.22 crore for the entire financial year ended March 31. This significant drop is primarily attributed to the conclusion of large service contracts worth Rs 24.87 crore that were executed in the fourth quarter of the previous financial year.

The company's financial results for the quarter ended June 30 show:

Metric	Q1 Current Year	Q1 Previous Year	Change
Revenue from Operations	Rs 0.59 lakh	Rs 2,486.99 lakh	-99.98%
Net Profit/(Loss)	Rs (55.02) lakh	Rs 2,450.95 lakh	-102.24%
Basic Earnings Per Share	Rs (2.90)	Rs 129.00	-102.25%

The stark contrast in performance is evident, with the company swinging from a profit of Rs 2,450.95 lakh in the same quarter of the previous year to a loss of Rs 55.02 lakh in the current quarter.

Reasons for Revenue Decline

In a note accompanying the financial results, IMEC Services explained the significant fall in revenue. The company stated that out of the previous year's revenue, Rs 24.87 crore was recognized in Q4, primarily from the execution of certain large service contracts which concluded during that year. Consequently, revenue for Q1 of the current year is significantly lower.

Future Outlook

Despite the current setback, IMEC Services has indicated that it is actively pursuing new business opportunities to augment its revenue base. The company's ability to secure new contracts and diversify its revenue streams will be crucial for its financial recovery in the coming quarters.

Corporate Governance

In addition to the financial results, IMEC Services made several corporate announcements:

The company's 37th Annual General Meeting is scheduled for September 25, to be conducted via video conferencing.
M/s. B Maksi Wala & Associates, Practicing Company Secretaries from Indore, have been appointed as the scrutinizer for the e-voting process at the upcoming AGM.

Conclusion

The first quarter results of IMEC Services Limited reflect the challenges faced by the company following the completion of major contracts. As the company navigates through this transitional phase, stakeholders will be keenly watching its efforts to secure new business and return to profitability in the upcoming quarters.

Note: All financial figures are based on standalone unaudited results for the quarter ended June 30, as reported by IMEC Services Limited.