NewJaisa FY26: Channel reset, inventory clean-up, and the road back

NewJaisa Technologies Limited ended FY 2025-26 in the middle of a difficult but clearly explained transition. The company reported revenue of INR 40.49 crore in FY26 versus INR 65.66 crore in FY25, after what management described as the abrupt loss of its largest demand channel when a major marketplace exited refurbished electronics. The financials were further impacted by a one-time inventory write-off of INR 12.38 crore and a non-cash ESOP charge of INR 1.85 crore.

Yet, the company’s presentation makes one point repeatedly: the disruption was channel-driven rather than demand-driven. Gross margin percentage remained broadly stable at 36 percent in FY26 versus 35 percent in FY25, and management used the earnings call to position FY26 as a year of consolidation, cost reset, and channel diversification.

FY26 financial snapshot: stable gross margin, losses amplified by extraordinary items

The headline profitability was weak due to exceptional items. EBITDA before extraordinary items was reported at minus INR 2.35 crore (minus 6 percent margin). After including extraordinary items, EBITDA moved to minus INR 16.58 crore (minus 41 percent). PAT for FY26 was minus INR 17.42 crore, compared with minus INR 1.13 crore in FY25.

A key operational indicator also weakened. Units sold in FY26 were 23,506 (laptops 13,920; desktops 9,586), down from 49,850 in FY25. The company noted an estimated ASP of about INR 12,200 per unit in FY26 versus INR 12,500 per unit in FY25.

The INR 12.38 crore inventory write-off: what management said happened

The company dedicated a full section of the presentation to the inventory write-off and called it a conservative, one-time decision to write inventory down to net realisable value under AS-2. Management also clarified that gross margin excluding the write-off remained stable.

Three reasons were provided.

First was a technology shift. Demand moved towards higher-spec devices, and older configurations became difficult to sell at their carrying value.

Second was channel disruption. Management said the exit of a major marketplace in March 2025 disrupted inventory turnover velocity. Inventory that previously moved through that channel could not be liquidated at viable prices.

Third was spare parts obsolescence. The write-off included a significant amount of legacy spare parts and components held for older models.

In the ageing table included in the presentation, the written-off inventory consisted of approximately INR 2.55 crore of old-generation laptops and desktops, about INR 8.28 crore of spare parts and components, and around INR 1.56 crore of peripherals and accessories, totalling about INR 12.38 crore.

On the earnings call, management added that it has since implemented stronger inventory governance, including quarterly external inventory valuation and weekly inventory ageing review systems. In Q&A, management stated it does not envisage further ageing inventory write-offs based on the current controls.

Channel rebuild: shifting from marketplace reliance to owned and enterprise channels

The business narrative for FY26 is largely about reducing single-channel dependency. In the earnings call, management reiterated that earlier about 65 percent of sales came from Amazon, and that the company doubled down on its own channels after the disruption.

The presentation lists several initiatives underway.

For the D2C website, NewJaisa stated that the direct-to-consumer site is now a primary revenue channel. It also stated that active users surpassed 1 million monthly, driven by organic traffic, with marketing automation live and ongoing UI/UX and conversion optimisation.

For institutional B2B, the company described active engagement with corporates across sectors like BFSI, BPO and retail, supported by a dedicated enterprise sales team. The company also disclosed a pipeline of B2B opportunities, including confirmed orders in May 2026 and hot pipeline opportunities targeted for June 2026 and into FY27.

The pipeline table in the presentation included, among others: a confirmed 500-unit laptop deployment and a confirmed 100-unit laptop order (both May 2026), plus larger opportunities such as 460 desktops with 920 monitors (June 2026) and a potential 6,000 unit end-to-end service engagement (Q2 to Q3 FY27).

Cost reset and balance sheet position

Management linked FY26 operating pressure to a cost structure designed for a higher revenue base. The presentation states headcount rationalisation was completed and operating fixed costs were reduced by about 46 percent. A slide also illustrated the concept of fixed costs remaining broadly constant while revenue grows, leading to improving EBITDA.

On the balance sheet, total assets were INR 72.36 crore versus INR 94.53 crore in FY25. Cash and bank were INR 15.65 crore. Total borrowings were shown at INR 11.98 crore, with management noting borrowings were down versus FY25. Inventories were INR 26.67 crore, which the company noted is 36 percent of assets.

In Q&A, an investor questioned inventory levels relative to revenue. Management responded that the inventory includes spares and components and indicated that it does not expect inventory to increase significantly from here, while suggesting there may be room to optimise inventory by about 10 to 15 percent.

Takeaways

FY 2025-26 for NewJaisa was defined by a channel disruption, a major clean-up of older inventory, and a reset of operating costs. The reported losses were heavily affected by the one-time inventory write-off and other non-cash charges, while gross margin percentage remained steady.

The forward narrative in the documents focuses on execution rather than explicit financial guidance: scaling the D2C platform, building the institutional B2B engine supported by an order pipeline, and expanding value-added services and distribution partnerships. The next phase, as described by management, depends on whether revenue growth can absorb a now-lower fixed cost base without rebuilding inventory risk.