Virinchi posts Rs 58.59 lakh standalone September loss

Virinchi Limited reported a standalone net loss of Rs 58.59 lakh for the quarter ended September 30, 2026, although revenue from operations rose to Rs 46.3815 crore from Rs 40.4735 crore a year earlier. A Rs 5.7541 crore tax expense exceeded its Rs 5.1682 crore profit before tax, compared with Rs 7.5671 crore profit after tax in the prior-year quarter.

What did Virinchi report for the September 2026 standalone quarter?

Virinchi reported a Rs 58.59 lakh loss after tax for the quarter ended September 30, 2026, against a Rs 7.5671 crore profit after tax in the quarter ended September 30, 2025 and a Rs 3.8837 crore profit in the quarter ended June 30, 2026. Basic and diluted earnings per share were each negative Rs 0.05, versus Rs 0.74 a year earlier and Rs 0.35 in the preceding quarter. The board approved the unaudited results on November 10, 2026.

Revenue from operations rose 14.6% year on year to Rs 46.3815 crore and increased from Rs 44.8389 crore in the June 2026 quarter. Other income fell to Rs 4.2922 crore from Rs 5.0398 crore a year earlier, while total income reached Rs 50.6737 crore. Total expenses rose to Rs 45.5055 crore from Rs 35.9151 crore, reducing profit before tax from Rs 9.5983 crore to Rs 5.1682 crore.

Why did Virinchi make a loss despite higher revenue?

Virinchi made a standalone loss because its Rs 5.7541 crore total tax expense was Rs 58.59 lakh higher than its Rs 5.1682 crore profit before tax. Current tax was Rs 5.9308 crore, partly offset by a deferred-tax credit of Rs 17.67 lakh. In the September 2025 quarter, total tax expense was Rs 2.0312 crore, comprising Rs 2.4679 crore of current tax and a Rs 43.68 lakh deferred-tax credit.

Administrative expenditure increased to Rs 21.4591 crore from Rs 14.6357 crore in the September 2025 quarter. Depreciation and amortisation rose to Rs 4.0695 crore from Rs 2.5773 crore, while finance cost increased to Rs 4.2308 crore from Rs 2.9329 crore. Employee cost declined to Rs 15.4613 crore from Rs 15.7692 crore, but the reported reduction was smaller than the increases in those three expense lines.

Which standalone segments generated Virinchi's revenue?

Virinchi's software as a service, or SaaS, business generated Rs 41.1827 crore of segment revenue in the September 2026 quarter, making it the largest reported standalone segment. Healthcare services generated Rs 2.3039 crore and IT-enabled services generated Rs 2.8950 crore. These three segments together reconciled to standalone revenue from operations of Rs 46.3815 crore.

SaaS revenue increased from Rs 38.6544 crore in the September 2025 quarter, while healthcare services rose from Rs 1.8192 crore and IT-enabled services from Rs 1.8192 crore. Healthcare services reported a segment result before interest and tax of Rs 9.7773 crore, whereas SaaS recorded a negative Rs 4.9184 crore result and IT-enabled services reported Rs 24.78 lakh. Interest expenditure was Rs 4.2308 crore and other unallocable income net of expenditure was Rs 4.2922 crore.

How did Virinchi perform in the first half of 2026-27?

Virinchi reported standalone profit after tax of Rs 3.2979 crore for the half-year ended September 30, 2026, down from Rs 13.6978 crore in the corresponding half-year ended September 30, 2025. Revenue from operations nevertheless increased to Rs 91.2204 crore from Rs 80.5469 crore. The first-half result included the September-quarter loss and the Rs 3.8837 crore profit reported for the June 2026 quarter.

First-half profit before tax declined to Rs 10.3643 crore from Rs 18.6111 crore, while tax expense increased to Rs 7.0665 crore from Rs 4.9133 crore. Administrative expenditure rose to Rs 41.9112 crore from Rs 27.9364 crore, and depreciation and amortisation increased to Rs 7.8955 crore from Rs 5.2765 crore. Finance cost rose to Rs 7.5567 crore from Rs 7.0662 crore.

What changed in Virinchi's standalone cash flow and balance sheet?

Virinchi's standalone assets were Rs 713.6379 crore at September 30, 2026, compared with Rs 641.0957 crore at March 31, 2026. Capital work-in-progress increased to Rs 83.1775 crore from Rs 12.4363 crore, while property, plant and equipment increased to Rs 109.3485 crore from Rs 106.1665 crore. Long-term loans and advances declined to Rs 264.6503 crore from Rs 320.1981 crore.

Cash and cash equivalents stood at Rs 4.6782 crore at September 30, 2026, down from Rs 5.9534 crore at the start of the financial year. The half-year cash-flow statement recorded Rs 53.2099 crore of net cash from operating activities and Rs 100.3184 crore used for fixed-asset purchases. Financing activities generated Rs 45.8333 crore, including Rs 37.3889 crore in net proceeds from long-term borrowings and Rs 16.1966 crore of proceeds from equity shares.

What is Virinchi's proposed warrant issue?

Virinchi has proposed a preferential issue of up to 2 crore fully convertible equity warrants at Rs 15 each, for an aggregate amount of up to Rs 30 crore. The proposed allotment comprises 1.5 crore warrants for promoter Viswanath Kompella and 50 lakh warrants for public-category IT Peer Technologies LLC. Each warrant can convert into one equity share, in one or more tranches, within 18 months of allotment.

Virinchi scheduled an extraordinary general meeting for December 10, 2026 at 3:30 p.m. through other audio-visual means or video conferencing to seek shareholder approval. Its post-issue illustration, which also includes 1,33,39,524 warrants pending as of the announcement date, shows promoter and promoter-group ownership at 47.60%, compared with 39.46% before the preferential issue. Public ownership is illustrated at 52.40%, compared with 60.54% before the issue.

Conclusion

Virinchi's standalone September-quarter outcome combined higher revenue of Rs 46.3815 crore with a loss after tax because the Rs 5.7541 crore tax charge exceeded profit before tax. The half-year comparison showed the same pattern: revenue increased to Rs 91.2204 crore, while profit after tax fell to Rs 3.2979 crore from Rs 13.6978 crore.

The next disclosed event is the December 10, 2026 extraordinary general meeting on the proposed Rs 30 crore warrant issue. Virinchi's results also leave investors to monitor the proposed warrant conversion timetable of up to 18 months from allotment and the effect of Rs 100.3184 crore of first-half fixed-asset purchases on later standalone cash flow and earnings.