Variman Global Enterprises Limited , a system integration and IT distribution hardware company, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's board of directors approved the results at a meeting held on November 13, 2025.

Consolidated Performance

Variman Global Enterprises reported a consolidated total income of Rs. 3,311.06 lakhs for Q2 FY26, with revenue from operations standing at Rs. 3,205.28 lakhs. The company achieved a net profit of Rs. 208.49 lakhs on a consolidated basis for the quarter.

Standalone Performance

On a standalone basis, the company's performance was less robust:

Subsidiary Contributions

The consolidated results include the performance of four subsidiary companies:

1. Verteex Vending and Enterprises Solutions Private Limited
2. Straton Business Solutions Private Limited
3. V Joist Innovation Private Limited
4. Copact Edtech Private Limited

For the half-year ended September 30, 2025:

• Straton Business Solutions Private Limited reported revenues of Rs. 607.54 lakhs and a net profit of Rs. 3.08 lakhs.
• Verteex Vending and Enterprises Solutions Private Limited achieved revenues of Rs. 1,082.43 lakhs and a net profit of Rs. 10.82 lakhs.
• V Joist Innovation Private Limited and Copact Edtech Private Limited did not report any revenue or profit for the period.

Financial Position

As of September 30, 2025, Variman Global Enterprises' consolidated balance sheet showed:

Cash Flow

The company's consolidated cash flow statement for the half-year ended September 30, 2025, revealed:

• Net cash from operating activities: Rs. 177.20 lakhs
• Net cash used in investing activities: Rs. (85.81) lakhs
• Net cash flow from financing activities: Rs. (157.74) lakhs

The consolidated cash and cash equivalents at the end of the period stood at Rs. 32.62 lakhs, compared to Rs. 99.86 lakhs at the beginning of the year.

Auditor's Review

MM Reddy & Co., Chartered Accountants, conducted an independent review of the financial results. They noted that the consolidated figures for the corresponding quarters ended September 30, 2024, and June 30, 2025, were approved by the parent company's Board of Directors but had not been subjected to review.

The auditors performed procedures in accordance with SEBI regulations and found no material misstatements in the financial results. They emphasized that the interim financial information of the subsidiary companies was reviewed by other auditors.

Variman Global Enterprises Limited continues to navigate the competitive IT hardware distribution and system integration market. While the consolidated results show profitability, the standalone performance indicates challenges that the company may need to address in the coming quarters.

Variman Global Enterprise Limited has announced the cancellation of 2.69,80,000 convertible warrants following the failure of warrant holders to exercise their conversion option within the stipulated timeframe. This development comes as a significant corporate action, impacting the company's financial structure.

Key Details of the Warrant Cancellation

Impact and Implications

The cancellation of these warrants has resulted in the forfeiture of the upfront amount paid at the time of allotment, totaling Rs 13.49 Crore. This forfeiture represents a significant financial impact for the company.

It's important to note that:

1. No warrants were exercised during the 18-month conversion period.
2. The cancellation does not result in any change to Variman Global Enterprise's capital structure.

Corporate Governance Aspect

The company's decision to cancel the warrants and forfeit the upfront amount aligns with standard corporate governance practices. It demonstrates adherence to the predetermined terms of the warrant issuance, maintaining transparency with investors and regulatory bodies.

This event underscores the importance for investors to closely monitor convertible instruments and their associated timelines. It also highlights the potential risks and opportunities that such financial instruments can present in the corporate landscape.

As the market digests this information, stakeholders may want to keep an eye on any potential impact on Variman Global Enterprise's future financial strategies and capital raising plans.