CEREBRAINT - Cerebra Integr.
📢 Recent Corporate Announcements
Cerebra Integrated Technologies reported a disastrous Q3 FY26 with revenue plummeting 92% YoY to ₹81.52 Lakhs and net losses widening to ₹16.74 Crore. The statutory auditors have issued a 'Disclaimer of Conclusion,' citing severe lack of evidence for inventory devaluations and unconfirmed receivables. Major red flags include ₹141.25 Crore in trade receivables outstanding for over a year and ₹100.28 Crore in overdue overseas dues from a 2022 sale. The company's financial health appears critical with significant accounting irregularities flagged by auditors.
- Revenue from operations collapsed by 92.4% YoY to ₹81.52 Lakhs from ₹1,073.72 Lakhs.
- Net loss for the quarter doubled to ₹16.74 Crore compared to a loss of ₹8.29 Crore in the same period last year.
- Auditors flagged that ₹141.25 Crore out of ₹142.49 Crore total trade receivables (99%) are outstanding for more than one year.
- A massive ₹100.28 Crore remains overdue for over two years from an overseas party regarding the sale of a former subsidiary.
- Statutory auditors issued a Disclaimer of Conclusion due to ad-hoc inventory devaluation of ₹9.76 Crore without supporting evidence.
Cerebra Integrated Technologies Limited has received an e-auction sale notice from Canara Bank, a secured lender, on January 23, 2026. This action, taken under Section 13(4) of the SARFAESI Act, 2002, follows a previous disclosure regarding debt issues dated July 15, 2025. The notice indicates that the bank is proceeding with the sale of secured assets to recover outstanding dues. This development highlights severe financial distress and the risk of asset liquidation for the company.
- Received e-auction sale notice from Canara Bank on January 23, 2026
- Action initiated under Section 13(4) of the SARFAESI Act for recovery of secured debts
- Follow-up to a previous regulatory intimation made on July 15, 2025
- Indicates a failure to resolve defaults with the secured lender leading to asset enforcement
Cerebra Integrated Technologies Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFIN Technologies Limited, confirms that the company has processed dematerialization and rematerialization requests for the quarter ended December 31, 2025. This filing ensures that the company is in compliance with depository guidelines and that shareholding records are updated with the exchanges. This is a standard administrative procedure for all listed entities in India.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Certificate issued by Registrar and Share Transfer Agent (RTA), KFIN Technologies Limited.
- Confirms that details of dematerialized/rematerialized securities were furnished to BSE and NSE.
- The filing was signed by Whole Time Director Vishwamurthy Phalanetra on January 13, 2026.
Cerebra Integrated Technologies Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of Q3 unaudited financial results. The window will remain closed until 48 hours after the results are officially announced to the exchanges. The specific date for the Board Meeting to approve these results will be communicated in due course.
- Trading window closure starts on January 1, 2026, for the Q3 financial results.
- Restriction applies to Employees, Directors, Promoters, and Key Managerial Personnel.
- Window will reopen 48 hours after the declaration of the unaudited financial results.
- The announcement is a mandatory compliance under SEBI (PIT) Regulations, 2015.
Financial Performance
Revenue Growth by Segment
Total revenue from operations declined by 81.89% YoY in Q2 FY26, falling to INR 220.65 Lakhs from INR 1,218.26 Lakhs. For the half-year ended September 30, 2025, revenue dropped 82.12% to INR 399.70 Lakhs from INR 2,235.53 Lakhs due to the cessation of key refurbishment activities and workforce reductions.
Profitability Margins
Net Profit Ratio worsened by 42.92% in FY25, moving from -0.93 to -1.33. The company reported a net loss of INR 2,375.10 Lakhs for H1 FY26, compared to a loss of INR 3,124.86 Lakhs in H1 FY25, reflecting persistent operational inefficiencies and high fixed costs relative to shrinking revenue.
EBITDA Margin
EBIDTA was reported at INR 9.60 Cr for FY24 on a total operating income of INR 51.98 Cr, representing an 18.47% margin. However, subsequent periods show significant operating losses and a disclaimer of audit opinion, suggesting core profitability has collapsed.
Capital Expenditure
Capital advances of INR 20.29 Cr are outstanding for more than one year (INR 10.81 Cr current and INR 9.49 Cr non-current), but auditors noted a lack of confirmation and no provision for bad portions, indicating stalled or risky capital deployment.
Credit Rating & Borrowing
The company faces challenges in servicing current liabilities, including borrowings of INR 40.19 Cr as of March 31, 2025. Interest expenditure for H1 FY26 was INR 350.91 Lakhs, down 44.14% from INR 628.19 Lakhs in the previous year, likely due to reduced credit access or restructuring.
Operational Drivers
Raw Materials
E-waste inventory, computer peripherals, and components represent the primary raw materials, with cost of materials consumed totaling INR 193.67 Lakhs in H1 FY26, which is 48.45% of total revenue.
Capacity Expansion
The company has ceased certain key operations, including refurbishment activities, and substantially reduced its workforce, indicating a contraction rather than expansion of capacity.
Raw Material Costs
Cost of material consumed dropped 90.33% YoY in H1 FY26 to INR 193.67 Lakhs from INR 2,003.48 Lakhs, directly correlating with the massive reduction in manufacturing and refurbishment operations.
Manufacturing Efficiency
Trade Payables Turnover Ratio decreased by 62.90% in FY25 (from 1.36 to 0.84) due to a sharp reduction in purchases, indicating severely diminished manufacturing activity and efficiency.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
The company is currently in a survival phase rather than a growth phase. Strategy involves attempting to restructure operations, settle income tax dues of INR 35.67 Cr, and raise long-term funds to address a disclaimer of opinion regarding its going concern status.
Products & Services
E-waste recycling, refining, refurbishment services, electronic manufacturing services (EMS), and IT infrastructure management.
Brand Portfolio
Cerebra
External Factors
Industry Trends
While the e-waste recycling industry is generally growing due to environmental regulations, Cerebra is losing market position due to internal financial distress, workforce reductions, and a lack of audit-verifiable financial records.
Competitive Landscape
The company is losing ground to competitors as it fails to service its debt and maintain its workforce, leading to a 33.57% decline in its trade receivables turnover ratio.
Competitive Moat
The company's moat in e-waste recycling is currently non-existent due to the cessation of key refurbishment activities and a disclaimer of opinion from auditors regarding internal financial controls.
Macro Economic Sensitivity
Highly sensitive to the regulatory environment for e-waste and the availability of long-term financing, as the company is currently unable to meet its current liabilities of INR 93.52 Cr.
Regulatory & Governance
Industry Regulations
The company is failing to comply with Ind AS 2 (Inventories), Ind AS 21 (Foreign Exchange), and Section 133 of the Companies Act, according to the auditor's disclaimer of opinion.
Environmental Compliance
As an e-waste recycler, the company is subject to strict environmental norms, but auditors were unable to confirm regulatory compliance regarding the recoverability of dues and inventory valuation.
Taxation Policy Impact
The company has significant unpaid income tax dues, with current tax liabilities (net) standing at INR 35.67 Cr as of September 30, 2025.
Legal Contingencies
The company faces material uncertainties regarding pending litigations and their impact on financial position, which auditors were unable to quantify. Current tax liabilities of INR 35.67 Cr represent a major immediate legal/financial obligation.
Risk Analysis
Key Uncertainties
There is a material uncertainty (100% impact risk) regarding the company's ability to continue as a going concern due to significant operating losses, workforce reduction, and inability to service liabilities.
Third Party Dependencies
High dependency on the ability of management to secure third-party long-term funding to restructure operations.
Technology Obsolescence Risk
High risk of technology obsolescence in the e-waste and refurbishment segment, evidenced by the ad-hoc devaluation of INR 19.95 Cr of stock in FY25.
Credit & Counterparty Risk
Extreme credit risk; 99.06% of trade receivables (INR 142.23 Cr) are older than one year, with inadequate provisioning (only INR 84.57 Cr provided against potential bad debts).