Indian Infotech & Software Ltd (509051)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Indian Infotech's revenue was ₹5.3 Cr (-50.7% year on year, -85.3% on the previous quarter), and net profit ₹1.8 Cr (-33.9% year on year); the operating margin was 44.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹5.3 | -50.7% | -85.3% |
| Operating profit | ₹2.4 | -34.0% | from loss |
| Net profit | ₹1.8 | -33.9% | from loss |
| EPS (₹) | 0.01 | -47.5% | from loss |
| Operating margin | 44.6% | — | — |
📢 Recent Corporate Announcements
Indian Infotech and Software's Board of Directors has approved the appointment of M/s SSRV & Associates as statutory auditors for a 5-year term (FY27–FY31), replacing M/s ADV & Associates. The board also recommended shareholder approvals for significant financial mandates, including raising borrowing powers and investment/loan limits up to Rs 500 crore each, as well as material related-party transactions (RPT) up to Rs 250.00 crore. For context, the proposed Rs 500 crore borrowing limit represents ~161% of the company's net worth of Rs 311 crore.
- Proposed appointment of M/s SSRV & Associates as Statutory Auditors for 5 consecutive years from FY27 to FY31.
- Approved raising limits for loans, guarantees, and investments under Section 186 up to Rs 500 crore.
- Approved raising borrowing powers under Section 180(1)(c) up to Rs 500 crore.
- Recommended shareholder approval for material related-party transactions up to Rs 250.00 crore.
Indian Infotech & Software's Board of Directors has approved proposals to increase limits for investments, loans, and guarantees under Section 186 up to ₹500 crore, alongside raising borrowing limits under Section 180(1)(c) to ₹500 crore, subject to upcoming AGM shareholder approval. The board also recommended material related-party transactions (RPT) of up to ₹250.00 crore for member approval. In addition, M/s SSRV & Associates was proposed as statutory auditor for a 5-year term, and Heneel Shah & Associates was appointed as internal auditor for a 3-year term.
- Approved increase in investment, loan, and guarantee limits under Section 186 up to ₹500 crores, subject to AGM approval.
- Approved increase in borrowing power under Section 180(1)(c) up to ₹500 crores.
- Recommended material related-party transactions (RPT) amounting up to ₹250.00 crores for shareholder approval.
- Appointed Heneel Shah & Associates as Internal Auditor for 3 financial years (FY27 to FY29) and proposed SSRV & Associates as Statutory Auditor for a 5-year term.
Indian Infotech & Software Ltd's board has approved seeking shareholder approval to increase its borrowing limits and investment/loan limits up to Rs 500 crore each under Sections 180(1)(c) and 186 of the Companies Act. The board also recommended a material related party transaction limit of up to Rs 250 crore, which represents approximately 80% of its net worth (Rs 311 crore). Additionally, the board recommended appointing M/s SSRV & Associates as statutory auditors for a 5-year term and appointed an Independent Director.
- Proposed increase in borrowing power limit up to Rs 500 crore under Section 180(1)(c)
- Proposed investment and loan/guarantee limit increased up to Rs 500 crore under Section 186
- Approval sought for material related party transactions up to Rs 250.00 crore
- SSRV and Associates recommended as statutory auditors for a 5-year term from FY 2026-27 to 2030-31
- Appointment of Yatin Vilas Chaphekar as Independent Director effective 01st October, 2026
Indian Infotech and Software Ltd has scheduled a Board of Directors meeting on September 3, 2026, to consider several major enabling resolutions ahead of its 44th Annual General Meeting. Key agenda items include approving proposals to increase borrowing powers up to Rs 500 crore (under Section 180(1)(c)) and investment/loan limits up to Rs 500 crore (under Section 186). Additionally, the board will consider increasing the Related Party Transaction limit up to Rs 250 crore and approving statutory and internal auditor appointments.
- Board meeting scheduled on September 3, 2026, to consider AGM resolutions.
- Proposal to increase borrowing limits up to Rs. 500 crores under Section 180(1)(c).
- Proposal to increase investment, loan, guarantee, and advances limit up to Rs. 500 crores under Section 186.
- Proposal to increase Related Party Transaction limits up to Rs. 250 crores.
- Fixation of book closure dates and notice approval for the 44th Annual General Meeting.
Indian Infotech & Software reported standalone total income of ₹5.28 Cr (₹528.29 Lakhs) for the quarter ended June 30, 2026, down 50.7% YoY compared to ₹10.72 Cr in the prior-year period. Net profit for the quarter stood at ₹1.75 Cr (₹175.06 Lakhs), a 34.1% YoY decline from ₹2.65 Cr, though rebounding from a net loss of ₹3.26 Cr in the preceding quarter. The statutory auditor highlighted that a substantial number of entities have not provided loan/ledger confirmations, with interest income recognized purely on an accrual basis.
- Total income decreased 50.7% YoY to ₹528.29 Lakhs in Q1 FY27 from ₹1,072.39 Lakhs in Q1 FY26
- Net profit declined 34.1% YoY to ₹175.06 Lakhs, compared to ₹265.47 Lakhs in the year-ago quarter
- Revenue from share trading dropped sharply to ₹303.29 Lakhs from ₹771.76 Lakhs YoY and ₹3,192.82 Lakhs in Q4
- Interest income stood at ₹225.00 Lakhs versus ₹300.60 Lakhs in the corresponding quarter last year
- Auditor flagged that loans, advances, and interest income lack third-party confirmations and are taken on an accrual basis
Indian Infotech & Software reported a standalone net profit of ₹175.06 Lakhs (₹1.75 Cr) for Q1 ended June 30, 2026, down 34.1% YoY from ₹265.47 Lakhs, though rebounding from a net loss of ₹325.82 Lakhs in the prior quarter. Total income dropped 50.7% YoY to ₹528.29 Lakhs (₹5.28 Cr) compared to ₹1,072.39 Lakhs in Q1 FY26 (ended June 2025), driven by reduced share trading and lower interest income. Basic EPS for the quarter stood at ₹0.0105. The statutory auditor highlighted that loans and advances remain subject to confirmation, with interest income recognized purely on an accrual basis.
- Total income declined 50.7% YoY to ₹528.29 Lakhs from ₹1,072.39 Lakhs in the year-ago quarter
- Net profit fell 34.1% YoY to ₹175.06 Lakhs vs ₹265.47 Lakhs in Q1 FY26, but turned profitable QoQ vs a loss of ₹325.82 Lakhs
- Interest income stood at ₹225.00 Lakhs, while revenue from sale of shares was ₹303.29 Lakhs
- Auditor flagged that loans and advances are subject to third-party confirmations, with interest booked on accrual
Indian Infotech & Software Ltd has scheduled a board meeting on August 14, 2026, to approve its unaudited standalone financial results for the quarter ended June 30, 2026. The company currently operates with a TTM revenue of Rs 137 Cr but has struggled with profitability, reporting a TTM PAT of Rs 0 Cr and a thin operating margin of 0.4%. Investors should focus on whether the company has addressed previous audit concerns regarding the lack of external confirmations for interest income and loan balances.
- Board meeting scheduled for August 14, 2026, to approve Q1 results.
- Trading window closed from July 01, 2026, until 48 hours post-announcement.
- Company reported a TTM revenue of Rs 137 Cr against a market price of Rs 0.6.
- Promoter holding remains low at 11.53% as of March 2026.
- Previous financial reports highlighted a cash loss of INR 6.67 Cr.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment: Finance and Share Trading. While specific YoY revenue growth percentages were not disclosed, the company reported a cash loss of INR 6.67 Cr (INR 667.05 Lakhs) for the financial year ended March 31, 2025.
Profitability Margins
Profitability is currently negative as the company incurred a cash loss of INR 6.67 Cr. Specific gross, operating, and net margin percentages were not disclosed in the provided snippets.
EBITDA Margin
Not disclosed in available documents; however, the company reported a cash loss of INR 6.67 Cr for the fiscal year ended March 31, 2025.
Capital Expenditure
The company reported NIL investment in fixed assets as of March 31, 2025, and no planned capital expenditure was specified.
Credit Rating & Borrowing
Not disclosed. The company has not been sanctioned working capital limits exceeding INR 5 Cr from banks or financial institutions.
Operational Drivers
Raw Materials
Not applicable as the company is a Non-Banking Finance Company (NBFC) providing financial services and share trading.
Capacity Expansion
Not applicable for a financial services firm; however, the company operates as an NBFC with a valid Certificate of Registration (CoR) from the RBI under Section 45-IA.
Strategic Growth
Expected Growth Rate
7.2%
Growth Strategy
The company aims to achieve growth by capitalizing on the robust 7.2% projected economic growth in India, focusing on financial literacy to drive responsible borrowing. The strategy involves leveraging technology to reach underserved markets and maintaining compliance with RBI's hybrid regulatory framework while managing a single business segment of Finance and Share Trading.
Products & Services
Loans and Share Trading services.
Brand Portfolio
Indian Infotech and Software Limited.
External Factors
Industry Trends
The NBFC sector in India is growing, supported by a projected 7.2% GDP growth rate. Industry-wide GNPA levels are healthy at below 3%. The sector is evolving through a hybrid regulatory approach by the RBI and a shift toward digital financial inclusion and stricter transparency in lending practices.
Competitive Landscape
The company competes within the NBFC sector and with universal banks. Banks have stricter licensing and priority sector requirements but lower regulatory capital (9% vs 15% for NBFCs). NBFCs have more flexibility in branch authorization and activities.
Competitive Moat
The company's moat is its NBFC license (CoR) from the RBI, which allows it to engage in lending and share trading with a lower initial capital requirement of INR 10 Cr compared to the INR 1000 Cr required for universal banks. This advantage is sustainable as long as regulatory compliance is maintained.
Macro Economic Sensitivity
The company is sensitive to India's GDP growth, projected at 7.2%, which drives credit demand. It is also sensitive to global trade policies, such as the 125% US tariff on China, which could increase downside risks to growth.
Consumer Behavior
There is a shift toward digital financial services and a need for enhanced financial literacy among borrowers to ensure sustainable economic growth.
Geopolitical Risks
US government tariffs on major global economies (e.g., 125% on China) are expected to increase downside risks on global growth, which could indirectly affect the company's share trading and finance activities.
Regulatory & Governance
Industry Regulations
The company is regulated by the RBI under Section 45-IA of the RBI Act, 1934. Key regulations include a 15% regulatory capital requirement for credit risk, a INR 20,000 limit on cash loan disbursals, and compliance with the hybrid regulatory approach combining activity-based and entity-based oversight.
Legal Contingencies
The company has various pending litigations before various authorities. While the management has disclosed these in the financial statements and considers an outflow of resources improbable, the specific case values in INR were not disclosed in the available documents, though the impact is described as material.
Risk Analysis
Key Uncertainties
The primary uncertainty is the non-availability of external confirmations for Interest Income (Note 13) and Loans & Advances (Note 6), which could impact the accuracy of the financial statements by an unquantified amount. Additionally, the company faces risks from cyber fraud and potential regulatory actions for non-compliance with cash loan limits.
Third Party Dependencies
Not disclosed; however, the company relies on its internal audit system which is stated to be commensurate with its size.
Technology Obsolescence Risk
The company faces increased risks of cyber fraud and unscrupulous activities as technology becomes more integral to NBFC operations. Digital transformation is implied through the maintenance of investments in Demat form.
Credit & Counterparty Risk
The company's principal business is lending. While specific credit quality for its portfolio was not disclosed, the industry-wide GNPA for NBFCs is below 3%.
