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Awaiting price reaction for this filing.
Southern Infoconsultants Limited reported weak Q3 FY26 results with revenue from operations falling to Rs. 261.39 lakhs, down sharply from Rs. 421.79 lakhs in the previous quarter and Rs. 609.88 lakhs in Q3 FY25 — a roughly 57% year-on-year decline. For the nine months ended December 2025, revenue declined marginally to Rs. 770.85 lakhs from Rs. 803.74 lakhs a year ago. The company swung to a loss after tax of Rs. 8.56 lakhs in Q3 FY26 (vs. a profit of Rs. 12.48 lakhs in Q3 FY25), resulting in a 9-month loss of Rs. 17.68 lakhs compared to a profit of Rs. 17.71 lakhs in the prior year period. Basic EPS for the nine months was Rs. (0.35). The statutory auditor issued a qualified opinion, noting that the company has not made any provision for gratuity as required under Ind AS 19, which overstates profits and understates provisions. The auditor also flagged emphasis-of-matter items including unconfirmed trade receivable and payable balances, and Rs. 722.05 lakhs of work-in-progress inventory that could not be verified for recognition due to lack of supporting contracts. The filing also indicates an auditor change, as prior period figures were reviewed/audited by a different auditor.
Shareholders should be cautious — the company has slipped into a loss on both a quarterly and year-to-date basis, with a steep revenue drop and qualified auditor opinion on gratuity provisions, which is a negative governance signal. The auditor change and unverified inventory raise further concerns about earnings quality, which could weigh on the stock in the near term.