Vedavaag Systems Reports Inter-se Promoter Share Transfer of 25.85 Lakh Equity Shares

Vedavaag Systems Limited has reported an inter-se transfer of equity shares among its promoters in compliance with SEBI regulations. The transaction involves a significant transfer of shareholding between family members within the promoter group, executed through an off-market gift transfer mechanism.

Share Transfer Details

J Sujatha, a promoter of Vedavaag Systems Limited, acquired 25.85 lakh equity shares (11.02% voting rights) from her spouse J S R Durga Prasad through an inter-se promoter group transfer. The acquisition was structured as a gift transfer, eliminating any monetary consideration for the transaction.

Transfer Parameter	Details
Total Shares Transferred	25,84,960 equity shares
Voting Rights	11.02% of total voting rights
Transfer Method	Off-market inter-se transfer by way of gift
Transferor	J S R Durga Prasad (spouse)
Transferee	J Sujatha (promoter)

Regulatory Compliance

The transaction falls under the purview of Regulation 10(1)(a)(i) read with Regulation 10(6) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company has fulfilled all disclosure requirements mandated under these regulations.

Compliance Aspect	Status
Regulation 10(5) Disclosure	Filed within specified timeline
Exemption Basis	Inter-se promoter group transfer

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.61%	-2.76%	-14.90%	-37.77%	-59.64%	-7.17%

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:

Metric	Q2 FY2026	Q1 FY2026	Change
Revenue	2,162.23	3,110.91	-30.5%
PAT	121.95	215.49	-43.4%

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:

Metric	H1 FY2026	H1 FY2025	Change
Consolidated Revenue	5,273.13	4,733.15	+11.4%
Consolidated PAT	337.44	476.84	-29.2%

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:

IT and ITES (including Financial Inclusion)
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:

Metric	Consolidated (Rs. lakhs)
Total Assets	18,856.57
Total Equity	15,146.03
Total Liabilities	3,710.53

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.