Infronics Systems Limited, a provider of IT software products, has reported a net loss of ₹21.44 lakhs for the quarter ended September 30, 2025. The company faces significant challenges, including a major legal dispute and the absence of operational revenue following the conclusion of its contract with BSNL.

Financial Performance

The company's financial results for the quarter paint a challenging picture:

The company's revenue has significantly decreased compared to the previous financial year, primarily due to the conclusion of its major contract with BSNL for providing SMS services to various banks.

Legal Challenge

Infronics Systems is embroiled in a significant legal dispute with Mudunuru Limited. The details of the dispute are as follows:

• Mudunuru Limited has claimed ₹12.05 crores from Infronics Systems
• The claim includes ₹8.60 crores as principal and ₹3.44 crores as interest
• The claim is allegedly based on pro-forma invoices dated between March 2023 and April 2025

Infronics Systems has denied any liability in this matter. The company has obtained a legal opinion supporting its position and, based on this, has concluded that no provision is required under the applicable accounting standards (Ind AS 37).

Auditor's Concerns

The company's auditors, R. Subramanian and Company LLP, have expressed a qualified conclusion in their limited review report. They have highlighted two main areas of concern:

1. The potential material impact of the legal dispute with Mudunuru Limited
2. Material uncertainty related to the company's ability to continue as a going concern

The auditors note that the company is not currently generating any revenue from its operations, following the conclusion of its major contract with BSNL.

Management's Response

Despite these challenges, the management of Infronics Systems has stated that the company has sufficient cash balances to settle its current liabilities and those estimated to arise in the next twelve months.

The company is also exploring and researching the development of a new technological product, although specific details have not been provided.

Conclusion

Infronics Systems Limited faces a critical juncture in its operations. The combination of the legal dispute, lack of current operational revenue, and the auditor's concerns about its ability to continue as a going concern present significant challenges for the company. Stakeholders will be closely watching how the management navigates these issues and implements its plans for future growth and sustainability.

Infronics Systems Limited has reported a challenging first quarter, with zero revenue and a net loss of Rs 17.03 lakhs. The company's performance marks a significant decline from the same quarter last year when it posted a revenue of Rs 79.06 lakhs and a net profit of Rs 43.93 lakhs.

Financial Performance

For the quarter under review:

The company's performance shows a stark contrast to the previous year, with a 100% decline in revenue and a shift from profit to loss.

Revenue Decline

The company's revenue drop to zero is attributed to the conclusion of SMS service contracts with BSNL from the previous financial year, which have not been renewed. This highlights Infronics Systems' current struggle with maintaining active business operations.

Operational Challenges

Infronics Systems is currently facing operational challenges due to the lack of active business. However, the management has stated that the company maintains sufficient cash balances to settle all liabilities as of the quarter-end, and those estimated to arise in the next twelve months.

Future Outlook

The management is exploring and researching the development of a new technological product. However, no concrete details have been provided regarding this initiative.

Legal Dispute

Infronics Systems has received a demand notice from M/s Mudunuru Limited for Rs 12.05 crore. The company disputes this claim as false and fabricated, stating that all obligations under their last business arrangement, which ended in October 2022, have been fully settled. The management has obtained legal opinion suggesting that the company's defense is likely to succeed.

Management's Statement

In the regulatory filing, the company stated, "The Customer Contracts with BSNL for providing SMS services to various banks were fully concluded during the previous financial year. These contracts have not been renewed subsequently and on account of this currently, there is no active business undertaken by the company."

Despite the current challenges, Infronics Systems Limited remains committed to exploring new business opportunities and maintaining its financial stability. Investors and stakeholders will be keenly watching the company's efforts to develop new revenue streams and return to profitability in the coming quarters.