Updater Services Limited (UDS) has reported potential financial irregularities in its subsidiary, Avon Solutions & Logistics Private Limited (Avon), involving significant trade receivables and payables. The company has initiated an investigation into the matter, which could have implications for its financial results.

Key Findings

UDS has identified the following issues in Avon's financial records:

Details of the Irregularities

The irregularities involve transactions related to:

• Sales to certain customers
• Services procured from specific vendors

These discrepancies were discovered in Avon's financial records as of September 30, 2025. In response, UDS has recorded a provision for doubtful recovery of INR 30.00 million against the questionable trade receivables in its unaudited consolidated financial results.

Company's Response

UDS management has taken the following steps:

1. Initiated an investigation into the irregularities
2. Evaluating necessary actions to address the situation
3. Made a preliminary assessment leading to the provision for doubtful recovery

Potential Impact

The company has stated that it is currently unable to evaluate the likely outcome or consequential impact on its financial results. This uncertainty stems from the ongoing nature of the investigation.

Regulatory Compliance

In compliance with Regulation 30(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, UDS has informed the stock exchanges about this development. The company has committed to keeping the exchanges informed of any material developments as they occur.

Investor Considerations

While the full extent of the impact remains unclear, investors should note that:

• The irregularities are confined to a subsidiary (Avon)
• UDS has taken proactive steps by initiating an investigation and making a provision
• The situation may evolve as the investigation progresses

Stakeholders should stay alert for further updates from Updater Services Limited regarding this matter and its potential impact on the company's financial position.

Updater Services Limited (UDS), a leading player in the manpower outsourcing and security services sector, has reported complete utilization of its Initial Public Offer (IPO) proceeds and robust financial results for the first quarter.

IPO Proceeds Fully Utilized

The company raised INR 640.00 crores through its IPO in September 2023, with net proceeds of INR 377.87 crores allocated for specific purposes. According to the monitoring agency report submitted by ICRA Limited for the quarter ended June 30, UDS has fully utilized INR 377.76 crores across four key areas:

ICRA Limited confirmed that the utilization is in line with the objects of the issue, and all completion targets were met on schedule by March 31. Only INR 0.11 crores remains unutilized, which has been carried forward for future use based on approval from the Board of Directors.

Q1 Financial Highlights

For the quarter ended June 30, Updater Services Limited reported strong consolidated financial results:

• Revenue from operations stood at INR 7,002.41 crores
• Total income, including other income, reached INR 7,052.92 crores
• Profit before tax was INR 310.51 crores
• Profit after tax for the period was INR 289.88 crores

The company's performance showed improvement compared to the same quarter in the previous year, with revenue from operations increasing from INR 6,521.65 crores to INR 7,002.41 crores.

Segment-wise Performance

UDS operates in two main segments:

1. Integrated Facility Management Services (IFM)
2. Business Support Services (BSS)

For the quarter:

• IFM segment reported total income of INR 4,767.64 crores
• BSS segment contributed INR 2,376.14 crores to the total income

The IFM segment showed a profit before tax of INR 212.20 crores, while the BSS segment reported a profit before tax of INR 113.95 crores.

Management Changes

In a separate announcement, UDS informed that Mrs. Radha Ramanujan, Group Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), has tendered her resignation effective from September 04. The company has also appointed M/s. R.G.N. Price & Co. as the Internal Auditor for the period from April 01 to June 30.