Mumbai: Sagarsoft (India) Limited reported consolidated revenue from operations of Rupees 37.4 crore in Q4 FY26, up 7.5 percent from Rupees 34.8 crore in the corresponding quarter last year. However, the company posted a net loss of Rupees 9.0 crore for the quarter compared with a profit of Rupees 0.6 crore a year earlier. Total income rose 10 percent year-on-year to Rupees 38.8 crore. On a sequential basis, revenue declined from Rupees 43.3 crore reported in Q3 FY26, while losses widened from Rupees 0.7 crore in the preceding quarter.
Sequential And Annual Growth
Quarterly expenses increased sharply during the period. Total expenses stood at Rupees 48.0 crore in Q4 FY26 against Rupees 34.0 crore in Q4 FY25 and Rupees 44.0 crore in Q3 FY26. Employee benefit expenses rose to Rupees 32.5 crore from Rupees 24.0 crore a year ago, while outsourcing costs increased to Rupees 8.2 crore from Rupees 5.6 crore. The company also recorded an impairment charge of Rupees 3.4 crore on intangible assets during the quarter, which impacted profitability. Profit before tax turned into a loss of Rupees 9.1 crore compared with a profit of Rupees 1.1 crore in Q4 FY25.
What Drove The Numbers
The company said contract revisions during the quarter affected revenue recognition and costs. Sagarsoft revised the scope and contract value of a fixed-price customer contract, resulting in an additional contract cost impact of Rupees 1.5 crore during Q4 FY26.
The company also noted that the results were not directly comparable due to the acquisition of Elite Computer Consultants Inc. by its subsidiary IT CATS LLC in February 2025. Management recognised impairment losses related to customer contracts acquired through the acquisition. Basic and diluted EPS for the quarter stood at negative Rupees 10.22.
Full-Year Performance
For FY26, consolidated revenue from operations increased 15 percent to Rupees 164 crore from Rupees 142 crore in FY25. However, the company reported a net loss of Rupees 14.9 crore against a profit of Rupees 5.4 crore in the previous year. Total expenses rose to Rupees 182 crore during the year. The board recommended a final dividend of Rupees 1.5 per equity share for FY26, subject to shareholder approval at the annual general meeting.
Disclaimer: This report is based on audited financial results filed by the company and does not constitute investment advice.
