Virinchi half-year loss widens to Rs 21.60 crore on cash outflow

Virinchi Limited reported a consolidated loss after tax of Rs 21.60 crore for the half-year ended September 30, 2026, compared with a Rs 13.30 crore loss a year earlier, while net operating cash flow swung to a Rs 22.59 crore outflow from a Rs 6.77 crore inflow. Revenue from operations rose to Rs 144.00 crore.

How did Virinchi's half-year result change?

Virinchi's consolidated loss after tax widened by Rs 8.30 crore to Rs 21.60 crore in the half-year ended September 30, 2026. Revenue from operations increased by Rs 2.49 crore year on year to Rs 144.00 crore, but total expenses rose by Rs 9.40 crore to Rs 159.70 crore.

The group reported a loss before tax of Rs 21.04 crore, against a loss before tax of Rs 8.71 crore in the corresponding half-year ended September 30, 2025. Total income was Rs 144.55 crore, including Rs 0.54 crore of other income, compared with Rs 141.59 crore a year earlier, including Rs 0.08 crore of other income.

Virinchi's employee cost decreased to Rs 48.31 crore from Rs 51.51 crore in the six-month period, but administrative expenditure increased to Rs 58.94 crore from Rs 48.88 crore. Purchases of traded goods rose to Rs 8.04 crore from Rs 6.11 crore, while depreciation and amortisation declined to Rs 27.55 crore from Rs 28.32 crore.

What happened in Virinchi's September 2026 quarter?

Virinchi's consolidated revenue from operations reached Rs 73.87 crore in the quarter ended September 30, 2026, up from Rs 70.13 crore in the preceding June quarter and Rs 61.77 crore in the September 2025 quarter. The consolidated loss after tax was Rs 19.50 crore, compared with a Rs 2.10 crore loss in June 2026 and a Rs 13.67 crore loss a year earlier.

Total expenses were Rs 83.07 crore in the September quarter, versus Rs 76.63 crore in the June quarter and Rs 73.40 crore in the year-earlier quarter. Administrative expenditure rose sequentially to Rs 31.23 crore from Rs 27.71 crore, while employee cost increased to Rs 24.46 crore from Rs 23.85 crore.

The filing reported a Rs 5.89 crore prior-period item in the September 2026 quarter. Consolidated loss before tax was Rs 14.60 crore, compared with Rs 6.44 crore in the June 2026 quarter, while tax expense was Rs 4.90 crore after a tax credit of Rs 4.34 crore in the preceding quarter.

Why did Virinchi's operating cash flow turn negative?

Virinchi recorded an operating profit before working-capital changes of Rs 22.24 crore in the half-year ended September 30, 2026, down from Rs 36.73 crore in the prior-year period. Trade and other receivables, including inventory, used Rs 31.89 crore of cash, compared with a Rs 10.51 crore use a year earlier.

Trade and other payables used a further Rs 1.96 crore in the latest half-year, whereas they used Rs 10.23 crore in the prior-year period. These movements took cash generated from operations to a Rs 11.61 crore outflow, versus a Rs 15.99 crore inflow in the corresponding six months of 2025.

Interest paid was Rs 3.57 crore and taxation was Rs 7.41 crore, resulting in net cash used in operating activities of Rs 22.59 crore. In the prior-year half-year, interest paid was Rs 4.37 crore and taxation was Rs 4.85 crore, leaving a Rs 6.77 crore operating cash inflow.

How did Virinchi fund investment and financing cash flows?

Virinchi used Rs 10.14 crore in investing activities during the half-year ended September 30, 2026, compared with Rs 3.98 crore in the previous corresponding period. Fixed-asset purchases accounted for Rs 10.12 crore of the latest outflow, against Rs 4.33 crore a year earlier.

Financing activities generated Rs 33.83 crore of cash in the latest half-year, compared with a Rs 4.95 crore outflow in the prior-year period. The reported financing inflow included Rs 32.30 crore of proceeds from equity shares and Rs 31.76 crore of net proceeds from long-term borrowings, partly offset by Rs 12.16 crore of interest and finance cost.

The resulting net increase in cash and cash equivalents was Rs 1.10 crore, reversing a Rs 2.16 crore decrease in the half-year ended September 30, 2025. Cash and cash equivalents closed at Rs 9.76 crore on September 30, 2026, compared with Rs 8.66 crore at March 31, 2026.

What changed in Virinchi's balance sheet?

Virinchi's consolidated total assets rose to Rs 865.95 crore at September 30, 2026, from Rs 850.37 crore at March 31, 2026. Current assets increased to Rs 255.64 crore from Rs 223.54 crore over the same period.

Trade receivables rose to Rs 101.53 crore at September 30 from Rs 86.85 crore at the March year-end. Short-term loans and advances increased to Rs 102.17 crore from Rs 87.98 crore, alongside the working-capital cash use reported in the half-year cash-flow statement.

Long-term borrowings increased to Rs 119.52 crore from Rs 87.76 crore, while current borrowings declined to Rs 51.49 crore from Rs 53.56 crore. Total equity decreased to Rs 474.80 crore from Rs 482.16 crore, and non-current liabilities rose to Rs 261.04 crore from Rs 236.13 crore.

What businesses and entities are included in Virinchi's consolidated results?

Virinchi's consolidated results cover four major operating segments: software as a service, or SaaS, business in US fintech; IDC and IT services; health care services; and payment and credit services in India fintech. The group reported consolidated revenue from operations of Rs 144.00 crore for the six months ended September 30, 2026 across these operations.

The filing states that the group had 13 subsidiaries and no associate or joint-venture companies as of September 30, 2026. The main contributing subsidiaries identified were Virinchi Health Care Private Limited and KSoft Systems Inc., while the results were reviewed by the audit committee and approved by the board on November 10, 2026.

The company prepared the unaudited results under Indian Accounting Standards, or Ind AS, and the consolidated financial statements were subject to a limited review. The auditor stated that nothing had come to its attention to suggest the results did not disclose the information required under the listing regulations or contained a material misstatement.

Conclusion

Virinchi's first-half revenue increased by Rs 2.49 crore, but expense growth of Rs 9.40 crore widened the consolidated loss to Rs 21.60 crore. The operating cash-flow reversal to a Rs 22.59 crore outflow coincided with a Rs 31.89 crore use of cash in receivables, inventory and related working-capital balances.

The next reported period will show whether receivables of Rs 101.53 crore at September 30 convert into cash and whether operating losses narrow. Separately, Virinchi has proposed a preferential issue of up to 2 crore fully convertible equity warrants at Rs 15 each, aggregating up to Rs 30 crore, with conversion permitted in one or more tranches within 18 months of allotment.