SRIT India Limited point-in-time revenue became 62% in FY26

SRIT India Limited reported Rs 279.153 crore of revenue recognised at a point in time in FY26, compared with Rs 35.707 crore in FY25. SRIT’s point-in-time revenue consequently became 62.0% of FY26 revenue from operations of Rs 449.999 crore, while contract assets increased to Rs 153.801 crore at March 31, 2026.

Why did SRIT’s point-in-time revenue rise in FY26?

SRIT’s point-in-time revenue increased by Rs 243.446 crore in FY26 as the timing mix of recognised revenue changed. Revenue recognised at a point in time rose to Rs 279.153 crore from Rs 35.707 crore in FY25, while revenue recognised over time declined to Rs 170.846 crore from Rs 353.640 crore. Total revenue from operations nevertheless increased by Rs 60.652 crore, or 15.6%, to Rs 449.999 crore.

SRIT’s accounting policy distinguishes the two recognition methods by the underlying performance obligation, meaning a promised product or service transferred to a customer. Time-and-material contracts are recognised when services are rendered, while fixed-price contracts generally use percentage of completion, based on costs or efforts incurred relative to estimated total costs or efforts. Revenue from right-to-use licences or hardware is recognised when the item is made available to the customer.

The disclosed operating revenue categories changed during FY26, although SRIT does not allocate those categories between the two timing methods. Software-services revenue declined to Rs 287.840 crore from Rs 317.699 crore, while service charges increased to Rs 152.867 crore from Rs 71.467 crore and software-licence sales rose to Rs 9.292 crore from Rs 8.181 crore. The disclosures therefore establish the shift in recognition timing but not the specific contracts or products responsible for it.

How far did SRIT’s revenue-recognition mix change?

SRIT shifted from mainly over-time revenue in FY25 to mainly point-in-time revenue in FY26. Point-in-time recognition represented 62.0% of FY26 revenue from operations, compared with 9.2% in FY25 and 0.9% in FY24. Over-time recognition correspondingly fell to 38.0% in FY26 from 90.8% in FY25.

The mix matters because the recognition triggers differ. Fixed-price contracts recognised over time require estimates of total costs or effort and reassessment as work progresses; right-to-use licence and hardware revenue is recognised when the relevant item is made available. A continuing high point-in-time share would depend on the relative volume of contracts meeting delivery-based recognition criteria, but SRIT provides no contract-level split to assess that condition.

SRIT recorded contract-price revenue of Rs 457.145 crore in FY26 before deducting Rs 7.146 crore for a significant financing component, resulting in revenue from operations of Rs 449.999 crore. A significant financing component reflects the financing effect of payment timing within a customer contract. The adjustment was Rs 7.313 crore in FY25 and Rs 7.905 crore in FY24, showing limited absolute movement despite the large change in timing mix.

Domestic revenue accounted for Rs 424.605 crore, or 94.4%, of SRIT’s FY26 revenue from operations, up from Rs 364.988 crore, or 93.7%, in FY25. Export revenue was Rs 25.394 crore in FY26 compared with Rs 24.359 crore a year earlier. Two customers that each contributed more than 10% of revenue collectively represented approximately 68.11% of FY26 revenue, compared with 71.5% from three customers in FY25.

What do SRIT’s contract assets indicate about billing?

SRIT’s contract assets rose 59.5% to Rs 153.801 crore at March 31, 2026 from Rs 96.432 crore a year earlier. SRIT defines contract assets as revenue earned in excess of billings, where its right to consideration remains conditional. For fixed-price development work, amounts for which a contractual milestone is not due are classified as non-financial assets.

Contract assets had already increased from Rs 46.972 crore at March 31, 2024 to Rs 96.432 crore at March 31, 2025. The FY26 balance equalled 34.2% of annual revenue from operations, compared with 24.8% in FY25 and 17.3% in FY24. The increase means a larger proportion of recognised revenue was awaiting fulfilment of contractual billing conditions at the reporting date.

Unbilled revenue, reported within current other financial assets, increased to Rs 22.496 crore in FY26 from Rs 3.801 crore in FY25. SRIT states that a contract asset is classified as a financial asset when the right to consideration is unconditional other than for passage of time. Contract liabilities, representing billings in excess of revenue recognised, were Rs 13.852 crore at March 31, 2026, compared with Rs 12.786 crore a year earlier.

Did SRIT convert FY26 profit into operating cash?

SRIT did not generate positive operating cash flow in FY26 despite reporting profit after tax of Rs 43.302 crore. Net cash used in operating activities was Rs 12.101 crore, compared with net cash generated from operating activities of Rs 17.966 crore in FY25 and Rs 34.161 crore in FY24. Cash flow used in operations before income-tax payments was Rs 68.639 crore in FY26.

Changes in other assets produced a Rs 63.424 crore operating-cash outflow in FY26, following outflows of Rs 58.943 crore in FY25 and Rs 16.595 crore in FY24. Contract assets are included within current other assets, but SRIT does not quantify their separate contribution to the cash-flow movement. Changes in trade receivables also used Rs 5.368 crore of cash in FY26, against a Rs 32.953 crore inflow in FY25.

Cash and cash equivalents fell to Rs 5.587 crore at March 31, 2026 from Rs 15.439 crore at March 31, 2025 and Rs 24.144 crore at March 31, 2024. Financing activities generated Rs 33.709 crore in FY26, including Rs 28.501 crore from share-capital issuance, while investing activities used Rs 31.474 crore. These movements show that earnings recognition, billing and cash collection did not move together during FY26.

Conclusion

SRIT’s FY26 revenue increase included a substantial change in timing, with point-in-time revenue rising to Rs 279.153 crore and representing 62.0% of revenue from operations. Contract assets reached Rs 153.801 crore while operating cash flow turned negative, linking the reported revenue mix to later billing and collection outcomes.

The next financial updates should show whether the point-in-time share remains elevated and whether contract assets convert into receivables and cash as contractual milestones become due. SRIT’s policy requires revenue recognition to be deferred when collectability is uncertain, and it recognises expected credit-loss allowances for financial assets under Ind AS 109.