Vedavaag Systems Limited , an IT services company, has released its financial results for the second quarter of fiscal year 2026, showing a mixed performance with revenue decline but stable profitability.

Standalone Performance

Vedavaag Systems reported standalone revenue of Rs. 1,896.93 lakhs for Q2 FY2026, marking a significant decrease from Rs. 2,563.75 lakhs in Q1 FY2026. Despite the revenue drop, the company managed to maintain profitability, with profit after tax (PAT) reaching Rs. 110.72 lakhs, compared to Rs. 161.21 lakhs in the previous quarter.

Consolidated Results

On a consolidated basis, the company's performance reflected a similar trend:

All figures in Rs. lakhs

The consolidated revenue decreased by 30.5% quarter-on-quarter, while consolidated profit after tax saw a 43.4% decline.

Half-Year Performance

For the first half of FY2026, Vedavaag Systems reported:

All figures in Rs. lakhs

Despite the quarter-on-quarter decline, the company has shown year-on-year growth in revenue for the first half, although profitability has decreased compared to the same period last year.

Segment Performance

Vedavaag Systems operates primarily in two segments:

1. IT and ITES (including Financial Inclusion)
2. System Integration (Smart Solar Lighting System)

The IT and ITES segment contributed Rs. 2,162.23 lakhs to the revenue in Q2 FY2026, while the System Integration segment did not report any revenue for the quarter.

Balance Sheet Highlights

As of September 30, 2025, the company reported:

Cash Flow and Liquidity

The consolidated cash flow statement shows:

• Net cash flow from operating activities: Rs. 67.60 lakhs
• Net cash used in investing activities: Rs. (0.88) lakhs
• Net cash used in financing activities: Rs. (103.20) lakhs

The company's cash and cash equivalents stood at Rs. 457.58 lakhs at the end of the period.

Conclusion

While the financial results show a decline in revenue and profitability compared to the previous quarter, Vedavaag Systems has maintained profitability despite the revenue drop, suggesting effective cost management. However, sustained growth in both top and bottom lines will be crucial for long-term value creation.

Investors and analysts may look for further clarification from the management regarding the reasons for the revenue decline and strategies to improve performance in the upcoming quarters.

Vedavaag Systems Limited, a provider of IT and IT-enabled services, has reported a 12.40% increase in standalone profit after tax for the quarter. The company's net profit rose to Rs 192.43 lakhs, up from Rs 171.22 lakhs in the same quarter of the previous year.

Financial Highlights

• Revenue from operations grew by 4.76% year-over-year to Rs 1,784.18 lakhs, compared to Rs 1,703.15 lakhs.
• On a consolidated basis, profit after tax increased by 9.20% to Rs 244.75 lakhs, up from Rs 224.12 lakhs in the year-ago period.
• Consolidated revenue from operations rose by 4.38% to Rs 2,306.70 lakhs, compared to Rs 2,209.93 lakhs.

Earnings Per Share

The company's earnings per share (EPS) showed improvement:

• Standalone EPS increased to Rs 0.84, up from Rs 0.75 in the corresponding quarter of the previous year.
• Consolidated EPS rose to Rs 1.07, compared to Rs 0.98.

Key Financial Metrics

Management Commentary

The Board of Directors approved these results at their meeting held on August 11, 2022. The financial statements were reviewed by the company's statutory auditors, PARY & Co.

Company Overview

Vedavaag Systems Limited specializes in providing IT and IT-enabled services, with a focus on governance and citizen services, banking, finance, and insurance sectors. The company's improved performance reflects its resilience and continued growth in its core business segments.