Megri Soft FY26: Profit up 11% even as revenue drops 18%

FY26 snapshot: revenue down, profits improve

Megri Soft Limited reported a mixed set of numbers for FY26, with revenue falling while profitability improved. The company’s revenue came in at ₹2.96 crore in FY26 versus ₹3.62 crore in FY25, a year-on-year decline of 18.23%. Despite the lower topline, operating profit rose to ₹0.84 crore in FY26 from ₹0.74 crore in FY25, up 13.51% year-on-year. Net profit also moved higher, reaching ₹0.62 crore in FY26 compared with ₹0.56 crore in FY25, a 10.71% increase. This combination typically signals tighter cost control or a change in the mix of revenue and expenses.

The FY26 numbers were later adopted at the company’s 35th AGM held on September 2, 2026. At the same meeting, the company reappointed Ms. Aprajita Kohli as a director. These corporate milestones provide the backdrop as the market looks ahead to the next set of quarterly updates.

What changed between FY25 and FY26

The reported headline move for FY26 was the drop in revenue from ₹3.62 crore to ₹2.96 crore. The decline is meaningful in percentage terms for a company of this scale, because even small absolute changes can materially impact growth rates. At the same time, operating profit increased from ₹0.74 crore to ₹0.84 crore, indicating that the company’s operating performance improved even without revenue growth. Net profit increased from ₹0.56 crore to ₹0.62 crore, broadly tracking the direction of operating profit.

With the information provided, the clearest takeaway is that profitability improved year-on-year in FY26 despite weaker sales. Investors generally look at whether such improvement is driven by sustainable cost actions or by one-off effects, but this dataset only confirms the reported outcomes and year-on-year changes. The FY26 performance also sets the baseline for evaluating FY27 quarterly movements.

Operating performance: higher operating profit in a lower-revenue year

Operating profit growth in FY26 came even as revenue contracted. The company reported operating profit of ₹0.84 crore in FY26, up from ₹0.74 crore in FY25. In percentage terms, this is a 13.51% improvement. Net profit moved up 10.71% to ₹0.62 crore in FY26 from ₹0.56 crore in FY25.

These figures suggest that expenses did not rise in line with revenue pressures, or that the company managed its operating costs more effectively during the year. However, the underlying drivers such as pricing, client concentration, or cost structure are not detailed in the provided information. What is clear is that the company delivered higher profits for shareholders on a year-on-year basis for FY26.

Q1 FY27 (June 2026 quarter): sales up QoQ, profit down QoQ

For the quarter ended June 2026 (Q1 FY27), Megri Soft reported revenue of ₹1.06 crore versus ₹0.93 crore in March 2026, a quarter-on-quarter rise of 13.98% as per the quarterly highlights provided. Operating profit for June 2026 was reported at ₹0.26 crore compared with ₹0.32 crore in March 2026, a QoQ decline of 18.75%. Profit for June 2026 stood at ₹0.19 crore versus ₹0.24 crore in March 2026, down 20.83% QoQ.

The company’s EPS was reported at ₹1.96 during June 2026. Another data point in the provided text stated that the EPS (TTM) is 2.12. Separately, the company news section noted that consolidated net profit rose 48% year-on-year to ₹0.1921 crore (₹19.21 lakh) for Q1 FY27, driven by a 47% surge in revenue, based on the August 3, 2026 update.

Reconciling reported quarterly numbers across sources

The dataset includes multiple reported figures for the June 2026 quarter. A consolidated quarterly table lists sales of ₹1.05 crore for June 2026 and ₹0.92 crore for March 2026, with operating profit of ₹0.28 crore and ₹0.34 crore respectively. Another section states the latest quarter revenue moved from ₹0.919 crore (₹9.19 million) to ₹1.05 crore (₹10.50 million), while net income moved from ₹0.232 crore (₹2.32 million) to ₹0.191 crore (₹1.91 million) versus the previous quarter.

Because these numbers appear in the provided material, it is reasonable to present June 2026 revenue as approximately ₹1.05-₹1.06 crore and March 2026 revenue as approximately ₹0.92-₹0.93 crore, depending on the dataset view (highlights versus table or other reporting format). The direction is consistent across the sources: revenue increased QoQ, while profits declined QoQ. The absolute differences likely arise from rounding, standalone versus consolidated presentation, or different data service formats, but the provided text does not specify the exact reason.

Key corporate actions and disclosures in 2026

Several corporate updates were flagged alongside financial performance. Megri Soft stated that related party transaction disclosures under Regulation 23(9) were not applicable for the half-year ended September 30, 2026. The company also announced a board meeting to approve unaudited financial results for the quarter and half-year ended September 30, 2026.

Separately, an announcement dated September 18, 2026 said Mohnesh Kohli resigned as director, effective that date. The company also indicated that the trading window would remain closed from October 1 for Q2 and half-year results and would reopen 48 hours after the unaudited standalone and consolidated results are declared.

Upcoming results: key dates to track

The next results date mentioned is October 22, 2026, aligned with a board meeting scheduled for the same day to approve Q2 and half-year unaudited financial results. This date is a near-term catalyst because it updates the market on the company’s performance for the September 2026 quarter and the first half of FY27. Investors also tend to track whether the QoQ pattern seen in Q1 FY27 persists or changes.

Based on the information available, the focus will be on how revenue and profitability behave after a quarter where sales rose sequentially but profits came under pressure. Any additional disclosures around costs and operating performance would typically help contextualise the FY26 and Q1 FY27 trends, but such detail is not included in the provided text.

Financial summary table (all amounts in ₹ crore)

Market impact: what these numbers signal

For investors following smaller listed IT and software services companies, the key point in Megri Soft’s FY26 numbers is the divergence between revenue and profit. A revenue decline alongside higher operating and net profit can indicate stronger operating discipline, but it also raises questions about the durability of the topline. The Q1 FY27 snapshot then adds a second layer: revenue rising sequentially but profits falling from the March 2026 quarter.

From a market-readiness perspective, the immediate relevance is the October 22, 2026 earnings timetable and the trading window closure timeline linked to those results. Corporate actions like AGM adoption of FY26 financials and a director resignation are also items that market participants generally track for governance and continuity, though the dataset does not connect these events to operational performance.

Conclusion

Megri Soft’s FY26 results show revenue down 18.23% year-on-year to ₹2.96 crore, while operating profit and net profit rose to ₹0.84 crore and ₹0.62 crore respectively. In Q1 FY27 (June 2026), reported revenue increased QoQ to about ₹1.05-₹1.06 crore, but operating profit and net profit were lower than the March 2026 quarter. The next scheduled milestone is the October 22, 2026 board meeting to approve Q2 and half-year unaudited financial results, which should provide the next datapoints for FY27.