KERNEXNSEKernex Microsystems (India) Limited· Computers - SoftwareHighNeutral
Announced Thu, 12 Feb · 11:11 IST

Kernex Microsystems (India) Limited has submitted to the Exchange, the financial results for the period ended December 31, 2025.

Qualified OpinionEmphasis Of MatterRevenue Growth 20pctEbitda Margin CompressionResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Kernex Microsystems reported Q3 FY26 results with consolidated revenue from operations of ₹7,259.76 lakhs, nearly doubling from ₹3,680.80 lakhs in Q3 FY25 (about 97% growth). For the nine-month period, consolidated revenue grew roughly 65% to ₹17,564 lakhs and consolidated PAT rose about 14% to ₹1,999 lakhs. Despite the strong top-line, Q3 consolidated PAT fell to ₹605.88 lakhs from ₹713.51 lakhs a year ago, and standalone nine-month PAT actually declined to ₹1,606 lakhs from ₹1,841 lakhs, with finance costs more than tripling to ₹1,636 lakhs (from ₹531 lakhs) pressuring margins. The statutory auditor issued a qualified conclusion on the standalone results because the company did not recognise an impairment of ₹1,275.97 lakhs on its investment in wholly owned US subsidiary Avant-Garde Infosystems, whose net worth is fully eroded. An emphasis of matter was added on long-outstanding trade receivables of ₹422.73 lakhs and bank guarantees of ₹265.03 lakhs under arbitration. Order book stands at roughly ₹3,268 crores, with ₹2,500 crores from LOCO TCAS projects at CLW and BLW.

Likely market impact

Strong order book and double-digit revenue growth support the business outlook, but the auditor's qualified opinion on the US subsidiary impairment, sharply higher finance costs squeezing margins, and a YoY drop in Q3 PAT are clear red flags that may weigh on sentiment. Shareholders should track margin trends and the resolution of the AGI impairment question in upcoming filings.