Sagarsoft (India) Limited has announced the appointment of Mrs. Kanakadhara Srinivasan as Additional Director in the Independent category, marking a significant addition to the company's board structure. The appointment, effective January 13, 2026, follows the recommendation of the Nomination and Remuneration Committee and demonstrates the company's commitment to strengthening its governance framework.

Appointment Details and Regulatory Compliance

The board has appointed Mrs. Kanakadhara Srinivasan (DIN: 01650788) for a five-year term as Additional Director (Independent). The appointment is subject to approval from shareholders under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has confirmed that Mrs. Srinivasan has not been debarred from holding the office of Director by any SEBI order or other regulatory authority, ensuring compliance with BSE circular requirements.

Professional Background and Expertise

Mrs. Srinivasan brings substantial experience to Sagarsoft's board, with over 15 years of expertise in financial advisory, mergers and acquisitions, and board-level oversight. Her professional track record includes advising on more than 100 domestic and cross-border transactions across diverse industry sectors.

Her work has involved close engagement with promoters, boards, private equity investors, and senior management teams, providing her with comprehensive insights into corporate governance and strategic decision-making processes.

Board Independence and Governance

The appointment reinforces Sagarsoft's commitment to maintaining board independence and effective governance practices. Mrs. Srinivasan is not related to any existing Director, Manager, or Key Managerial Personnel of the company, ensuring her independent status on the board.

The company has filed the necessary intimation under Regulation 30 of SEBI (LODR) Regulations, 2015, along with detailed disclosures as required under the recent SEBI circular dated November 11, 2024. This appointment is expected to enhance the board's collective expertise in financial matters and strategic oversight, contributing to the company's continued growth and governance excellence.

Sagarsoft (India) Limited , a prominent IT services company, has released its financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth Amidst Challenges

For Q2 FY2026, Sagarsoft reported consolidated revenue of ₹734.70 crores, marking a 14.69% increase from ₹640.57 crores in the previous quarter. This growth in revenue demonstrates the company's ability to expand its business operations despite challenging market conditions.

Profitability Under Pressure

Despite the revenue increase, the company faced significant pressure on its bottom line. Sagarsoft posted a consolidated net loss of ₹73.55 crores for the quarter, a stark contrast to the profit of ₹30.50 crores in the prior quarter. This shift from profit to loss indicates substantial challenges in maintaining profitability.

Half-Year Performance

For the six-month period ending September 30, 2025, Sagarsoft's revenue reached ₹1,375.27 crores. However, the company reported a net loss of ₹43.05 crores for this period, reflecting the ongoing profitability challenges.

Standalone Performance

On a standalone basis, Sagarsoft's performance was notably different:

The stark difference between consolidated and standalone results suggests that the company's subsidiaries may be facing more significant challenges.

Operational Highlights

• Employee Benefit Expenses: A significant increase to ₹538.17 crores in Q2 from ₹332.02 crores in the previous quarter, potentially impacting profitability.
• Business Segments: Sagarsoft continues to operate primarily in staffing and information technology services for customers in India and overseas.

Management Commentary

M. Jagadeesh, Managing Director of Sagarsoft (India) Limited, stated in the company's filing, "The Board of Directors has reviewed and approved our unaudited standalone and consolidated financial results for the second quarter and half-year ended 30th September, 2025. We remain committed to navigating the current challenges and improving our overall performance."

Looking Ahead

While Sagarsoft has demonstrated strong revenue growth, the company faces significant challenges in maintaining profitability. Investors and stakeholders will be watching closely to see how the company addresses these issues and works towards improving its bottom line in the coming quarters.

The company's ability to manage its increasing employee benefit expenses and optimize its operations across its subsidiaries will be crucial factors in its path to recovery and sustained profitability.