Orchasp Limited Reports Q2 FY2026 Profit Amid Auditor Concerns

Orchasp Limited , a computer programming consultancy and related services provider, has announced its financial results for the second quarter and half-year ended September 30, 2025, revealing a shift from loss to profit compared to the same period last year.

Key Financial Highlights

Particulars (in ₹ lakhs)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	753.80	458.59	1,528.99	806.36
Net Profit/(Loss)	20.77	(1,427.58)	74.99	(1,404.74)
EPS (Basic & Diluted) (₹)	0.01	(0.37)	0.02	(0.42)

Orchasp Limited reported a net profit of ₹20.77 lakhs for Q2 FY2026, a significant improvement from the loss of ₹1,427.58 lakhs in the corresponding quarter of the previous year. The company's revenue from operations also saw a substantial increase, rising to ₹753.80 lakhs in Q2 FY2026 from ₹458.59 lakhs in Q2 FY2025.

Auditor Concerns

The company's statutory auditors, JMT & Associates, have expressed several concerns in their limited review report:

Investment in Portuguese Subsidiary: The auditors highlighted the carrying value of ₹6,825 lakhs invested in Cybermate International, Unipessoal, LDA, a wholly-owned subsidiary in Portugal. This subsidiary has been non-operational for over four years and faces the risk of having its incorporation certificate canceled due to defaults in statutory filings.
Statutory Dues: The company has not paid Tax Deducted at Source (TDS) and other statutory dues up to September 30, 2025.
Trade Receivables: The auditors noted that trade receivables are due for more than six months, and in the absence of confirmations, they are unable to comment on the recoverability of these balances.

Management Response

Orchasp Limited's management has addressed some of these concerns:

Regarding the Portuguese subsidiary, the company stated that the process of transferring the investment to another subsidiary is underway and will be reported once completed.
On the issue of trade receivables, the board members believe it's prudent to wait for improvements in financial conditions before making provisions for bad or doubtful debts.
The company attributed delays in remitting statutory dues to issues with receivables realization.

Outlook

While Orchasp Limited has shown improvement in its quarterly performance compared to the previous year, the auditor's qualifications raise significant concerns about the company's financial health and operational challenges. The company's ability to resolve the situation with its Portuguese subsidiary, improve its receivables collection, and meet its statutory obligations will be crucial factors in its future financial stability and growth prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.69%	-8.49%	-17.56%	-3.96%	-18.72%	-18.72%

Orchasp Limited has announced its financial results for the first quarter, showcasing significant revenue growth despite facing auditor qualifications.

Strong Revenue Growth

The company reported a substantial increase in revenue from operations for the quarter. Orchasp's revenue stood at Rs 775.19 lakhs, marking a remarkable 123% rise compared to Rs 347.77 lakhs in the corresponding quarter of the previous year.

Improved Profitability

Profit after tax (PAT) reached Rs 54.22 lakhs, more than doubling from Rs 22.83 lakhs in the same period last year. This represents a significant improvement in the company's bottom line.

Financial Highlights

Particulars (in lakhs)	Current Quarter	Previous Quarter	YoY Change
Revenue from Operations	775.19	347.77	123%
Total Expenses	705.03	322.82	118%
Profit Before Tax	72.68	27.46	165%
Profit After Tax	54.22	22.83	137%

Auditor Qualifications

Despite the strong financial performance, the company's auditors, JMT & Associates, have raised several concerns in their limited review report:

Investment in Portuguese Subsidiary: The auditors highlighted a Rs 6,825.00 lakhs investment in Cybermate International, Unipessoal, LDA, a wholly-owned subsidiary in Portugal. This subsidiary has been non-operational for over four years and faces potential cancellation of incorporation due to statutory filing defaults.
Unpaid Statutory Dues: The company has not paid statutory dues for Provident Fund and Employees' State Insurance for the quarter.
Outstanding Receivables and Payables: Trade receivables and payables have been outstanding for over six months without external confirmations.

Management Response

Orchasp Limited acknowledged these issues in their statement to the stock exchanges. The company attributed the delays to adverse business conditions and stated that they are working to resolve the matter concerning the Portuguese subsidiary. Management expressed confidence in recovering substantial receivables in the coming quarter.

Conclusion

While Orchasp Limited has demonstrated strong revenue growth and improved profitability, the auditor's qualifications raise concerns about the company's financial management and compliance practices. Investors and stakeholders will likely monitor how the company addresses these issues in the coming quarters.