Orchasp Limited has announced the incorporation of a wholly-owned subsidiary in the United States as part of its strategic expansion into the healthcare technology sector. The new subsidiary, named Orchasp Inc, was incorporated on December 9, 2025, following board approval granted on November 11, 2025.

Strategic Decision and Board Deliberations

The company's Board of Directors initially discussed the revival of an existing dormant subsidiary, Cybermate Infotek Limited Inc, during their meeting on August 11, 2025. However, after evaluating the estimated costs associated with compliance requirements, revival procedures, and name changes, the board concluded that incorporating a new subsidiary would be more cost-effective than reviving the existing entity.

Subsidiary Details and Capitalization

The newly incorporated subsidiary has been established with specific operational objectives and financial structure:

Business Objectives and Platform Focus

The primary purpose of Orchasp Inc centers on expanding the company's healthcare technology offerings in the US market. The subsidiary will focus on two key operational areas:

• Marketing and promotion of the healthcare platform indusayush ( www.indusayush.in )
• Enabling hosting and distribution of mobile applications on Android and iOS platforms

This strategic move positions Orchasp Limited to leverage the US market opportunities in the healthcare technology sector while establishing a dedicated operational base for its digital health initiatives.

Regulatory Compliance

The incorporation has been disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and The National Stock Exchange of India Limited about this corporate development, ensuring transparency with stakeholders and regulatory authorities.

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

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:

1. 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.

2. Statutory Dues: The company has not paid Tax Deducted at Source (TDS) and other statutory dues up to September 30, 2025.

3. 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.