SecureKloud revenue more than doubles as half-year loss widens in September

SecureKloud Technologies Limited reported revenue from operations of Rs 17.50 crore for the quarter ended September 30, 2026, up from Rs 8.29 crore a year earlier, while its half-year loss before exceptional items and tax widened to Rs 3.51 crore from Rs 2.96 crore. The board approved the unaudited consolidated results on November 11, 2026.

How did SecureKloud's September-quarter revenue change?

SecureKloud's September 2026-quarter revenue from operations more than doubled year on year to Rs 17.50 crore, from Rs 8.29 crore in the quarter ended September 30, 2025. Revenue also increased from Rs 13.51 crore in the preceding quarter ended June 30, 2026. The company reports a single operating segment, Information and Technology Services.

The rise in operating revenue was not matched by other income. Other income fell to Rs 10.12 lakh in the September 2026 quarter from Rs 2.43 crore a year earlier, and from Rs 7.50 lakh in the June 2026 quarter. Total income consequently rose to Rs 17.61 crore from Rs 10.72 crore year on year, while total expenses increased to Rs 19.91 crore from Rs 13.04 crore.

SecureKloud's loss before exceptional items and tax was Rs 2.30 crore in the September quarter, compared with Rs 2.33 crore a year earlier but Rs 1.21 crore in the June 2026 quarter. Net loss after tax narrowed to Rs 2.40 crore from Rs 3.37 crore in the prior-year quarter, while it rose from Rs 1.68 crore in the immediately preceding quarter.

Why did SecureKloud's half-year pre-exceptional loss widen?

SecureKloud's half-year loss before exceptional items and tax widened to Rs 3.51 crore for the six months ended September 30, 2026, from Rs 2.96 crore in the corresponding prior-year period. Revenue from operations grew to Rs 31.02 crore from Rs 19.31 crore, but total income increased by Rs 9.23 crore to Rs 31.19 crore as other income declined sharply.

Total expenses rose to Rs 34.70 crore in the 2026 half year from Rs 24.92 crore a year earlier. Employee benefits expense increased to Rs 18.49 crore from Rs 17.33 crore, while other expenses rose to Rs 14.91 crore from Rs 3.42 crore. Finance costs declined to Rs 85.40 lakh from Rs 3.44 crore, and depreciation and amortisation fell to Rs 44.58 lakh from Rs 73.54 lakh.

The reported net loss after tax was Rs 4.09 crore for the 2026 half year, compared with Rs 131.21 crore a year earlier. That comparison was affected by exceptional items of Rs 127.20 crore in the September 2025 half year, against Rs 17.13 lakh in the 2026 half year. The current-period exceptional charge was a provision for bad and doubtful debts recorded in the June 2026 quarter, while the prior-year charge included a Rs 127.20 crore goodwill and intangible-assets write-off.

What do SecureKloud's balance sheet and cash flow show?

SecureKloud reported total assets of Rs 23.26 crore at September 30, 2026, up from Rs 18.33 crore at March 31, 2026. Current assets rose to Rs 20.30 crore from Rs 15.17 crore, while trade receivables declined to Rs 7.63 crore from Rs 9.62 crore. Other financial assets increased to Rs 5.78 crore from Rs 40.59 lakh over the same period.

Cash and cash equivalents fell to Rs 2.74 crore at September 30, 2026 from Rs 3.48 crore at March 31, 2026. The half-year cash-flow statement recorded net cash used in operating activities of Rs 83.74 lakh, capital expenditure of Rs 5.11 lakh and net cash generated from financing activities of Rs 14.57 lakh. These movements resulted in a Rs 74.28 lakh decrease in cash during the six-month period.

Non-current borrowings rose to Rs 34.00 crore from Rs 31.52 crore, while current borrowings declined to Rs 22.73 crore from Rs 23.83 crore. Total equity was negative Rs 78.12 crore at September 30, 2026, compared with negative Rs 78.01 crore at March 31, 2026. SecureKloud also disclosed that current liabilities exceeded total assets by Rs 41.21 crore at the September reporting date.

What going-concern and regulatory matters did SecureKloud disclose?

SecureKloud disclosed cash losses of Rs 3.64 crore during both the quarter and half year ended September 30, 2026. It said it faced constraints in meeting operating expenses and discharging current liabilities, and that proceedings by statutory authorities could result in further liabilities. The statutory auditor identified these conditions as a material uncertainty casting significant doubt on the group's ability to continue as a going concern, while not modifying its opinion.

Management said promoters had undertaken to provide financial support as obligations fall due. It identified the three quarters of financial year 2026-27 as the critical period to assess an operational and financial turnaround. If expected improvement is not achieved during that period, management said it would reassess the going-concern assumption, including whether financial statements should be prepared on a liquidation basis.

SecureKloud reported contingent liabilities of Rs 1.34 crore for disputed Goods and Services Tax dues and Rs 3.13 crore for disputed income-tax dues at September 30, 2026. Management said the timing and extent of any cash outflows could not presently be ascertained because the matters are pending before appellate authorities. Management's view is that the ultimate outcome is unlikely to have a material adverse effect on the company's financial position.

The Securities and Exchange Board of India barred promoters Suresh Venkatachari and R. S. Ramani from accessing the securities market for two years under its July 31, 2026 order, and imposed penalties of Rs 10 lakh on each individual. SecureKloud said the directions applied to those individuals rather than the company, and its board did not expect a material adverse effect on operations or financial performance. The filing also said a separate Rs 3.00 crore penalty imposed on Suresh Venkatachari under a December 16, 2022 order had been remitted, while applicable interest remained outstanding.

Conclusion

SecureKloud's results show materially higher operating revenue in the September quarter and first half, but the increase did not eliminate losses before exceptional items. The half-year expense total of Rs 34.70 crore exceeded total income of Rs 31.19 crore, while operating cash flow was negative and equity remained negative at September 30, 2026.

The next disclosed test is management's three-quarter assessment period in financial year 2026-27. Results over that period will indicate whether the operational improvement management cited can generate adequate cash flows, whether promoter support remains necessary, and whether management must reconsider the going-concern basis or a liquidation basis.