Innovassynth Investments Reports Consolidated Loss, Approves Merger Scheme

Innovassynth Investments Limited (IIL) has reported a consolidated loss of Rs 1,172.44 lakhs for the half-year ended September 30, 2025, according to the company's latest financial results. This marks a slight increase in losses compared to the previous year's figure of Rs 1,158.37 lakhs for the same period.

Key Financial Highlights

Particulars	Half-year ended Sept 30, 2025	Half-year ended Sept 30, 2024
Consolidated Loss	1,172.44	1,158.37
Loss from Associate Company	1,125.22	Not specified

All figures in Rs lakhs

The company's financial performance was significantly impacted by losses from its associate company, which contributed Rs 1,125.22 lakhs to the total consolidated loss.

Proposed Merger

In a significant development, the Board of Directors of Innovassynth Investments Limited has approved a draft merger scheme with its associate company, Innovassynth Technologies (India) Limited (ITIL). This strategic move aims to streamline operations and potentially improve the company's financial position.

Financial Review Process

The unaudited financial results for the quarter and half-year ended September 30, 2025, were reviewed by the Audit Committee and subsequently approved by the Board of Directors. The review was conducted in accordance with the Indian Accounting Standards (Ind AS) and other accounting principles generally accepted in India.

Auditor's Review

P G Bhagwat LLP, the company's statutory auditors, conducted a review of the financial statements. In their limited review report, they stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices.

Conclusion

As Innovassynth Investments Limited navigates through these financial challenges and structural changes, the proposed merger with Innovassynth Technologies (India) Limited could be a significant move. The success of this merger, once implemented, may impact the company's future financial performance and market position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.29%	-4.10%	-9.46%	-8.23%	-13.06%	+1,303.75%

Innovassynth Investments Limited (IIL) has reported a substantial consolidated loss for the quarter ended June 30, while simultaneously announcing the appointment of a new independent director to its board.

Financial Performance

The company posted a consolidated loss of Rs 699.52 crore for the quarter, a stark contrast to the profit of Rs 398.28 crore recorded in the previous quarter. This significant downturn was primarily attributed to a Rs 677.84 crore loss from its associate company, Innovassynth Technologies (India) Limited (ITIL).

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

Particulars	Q1 (Rs in lakhs)	Q4 (Rs in lakhs)
Revenue from operations	0.00	0.00
Total expenses	21.78	19.60
Loss before share of associate	(21.78)	(19.60)
Share of loss from associate	(677.84)	419.06
Exceptional items	(0.10)	(1.18)
Net profit/(loss)	(699.52)	398.28

The company reported no revenue from operations during the quarter, while its total expenses stood at Rs 21.78 lakhs. On a standalone basis, IIL posted a loss of Rs 21.88 lakhs.

Board Appointment

In a strategic move, the Board of Directors has appointed Mr. Prosenjit Gupta as an Additional Non-Executive Independent Director for a term of five years, subject to shareholder approval. Mr. Gupta, a Chartered Accountant by profession, brings extensive experience from the Banking, Financial Services, and Insurance (BFSI) sector.

Mr. Gupta's appointment comes after a distinguished career at HDFC Ltd., where he served for 29 years before retiring in 2020 as Senior General Manager - Treasury. His expertise in areas such as securitization, risk management, and corporate turnaround strategies is expected to bring valuable insights to IIL's board.

Merger Progress

The company continues to proceed with its merger scheme to absorb its associate company, Innovassynth Technologies (India) Limited. The application for this merger is currently pending approval from the National Company Law Tribunal (NCLT). All expenses related to the proposed merger are being disclosed as exceptional items in the financial statements.

Looking Ahead

As Innovassynth Investments navigates through these financial challenges, the appointment of Mr. Gupta and the ongoing merger process signal the company's efforts to strengthen its governance and streamline its operations. Shareholders and market observers will be keenly watching how these strategic moves impact the company's performance in the coming quarters.