Infronics Systems Q2 FY27 results: net loss narrows to ₹0.19 crore

How did Infronics Systems perform in Q2 FY27?

Infronics Systems reported standalone revenue of ₹0 crore for Q2 FY27, the July–September 2026 quarter. Revenue was unchanged from Q2 FY26 and Q1 FY27. Total expenses were ₹0.19 crore, resulting in an EBITDA loss of ₹0.19 crore; no EBITDA margin was reported. The company reported no other income, no exceptional item and no finance cost or depreciation.

Profit before tax was a loss of ₹0.19 crore in Q2 FY27, compared with a loss of ₹0.21 crore in Q2 FY26 and a loss of ₹0.16 crore in Q1 FY27. The year-on-year loss narrowed by ₹0.03 crore, while the loss widened by ₹0.03 crore from the previous quarter. Basic EPS was ₹0.24 in Q2 FY27, against ₹0.28 in Q2 FY26 and ₹0.20 in Q1 FY27. These are standalone figures; no consolidated figures were provided in the stated facts.

What changed in Infronics Systems' costs and profit?

Total expenses fell by ₹0.03 crore from ₹0.22 crore in Q2 FY26 to ₹0.19 crore in Q2 FY27, a decline of 13.6%. Employee cost declined by ₹0.02 crore, from ₹0.10 crore to ₹0.08 crore, or 20.0%, while depreciation fell by ₹0.01 crore to ₹0 crore. Other expenses were unchanged at ₹0.11 crore, and cost of materials and finance costs remained at ₹0 crore.

Other income was unchanged at ₹0 crore, and the company reported no exceptional item. Tax fell by ₹0.01 crore from ₹0.01 crore in Q2 FY26 to ₹0 crore. Against Q1 FY27, total expenses rose by ₹0.03 crore, or 18.8%, as employee cost increased by ₹0.01 crore and other expenses increased by ₹0.02 crore; finance costs, depreciation and other income remained at ₹0 crore. The filings do not state reasons for these cost movements.

How did the first half of FY27 go?

For H1 FY27, the first half of the financial year, Infronics Systems reported revenue of ₹0 crore and total income of ₹0 crore. PBT was a loss of ₹0.35 crore, compared with a loss of ₹0.39 crore in H1 FY26, while the net loss was ₹0.35 crore against ₹0.40 crore in H1 FY26. EPS was ₹0.45 in H1 FY27 and ₹0.50 in H1 FY26, with losses expressed in the stated figures.

What do the balance sheet and cash flow show?

At September 30, 2026, total assets were ₹2.89 crore, compared with ₹2.85 crore at March 31, 2026. Total equity was ₹2.25 crore against ₹2.60 crore, while cash was unchanged at ₹2.54 crore. Borrowings remained at ₹0 crore, and inventories and trade receivables were ₹0 crore. Trade payables rose from ₹0.08 crore to ₹0.40 crore.

H1 FY27 operating, investing and financing cash flows were ₹0 crore each, and capital expenditure was ₹0 crore. In H1 FY26, operating cash flow was a loss of ₹0.23 crore and financing cash flow was a loss of ₹0.02 crore; investing cash flow and capital expenditure were ₹0 crore.

How has Infronics Systems done over the last 8 quarters?

Revenue peaked at ₹0.65 crore in Q4 FY25 and was ₹0.39 crore in Q3 FY25. It then fell to ₹0 crore from Q1 FY26 through Q2 FY27, with no revenue recorded in the latest quarter. Profit after tax peaked at ₹0.41 crore in Q4 FY25 and bottomed at a loss of ₹0.22 crore in Q2 FY26. The latest quarter recorded a loss of ₹0.19 crore, below the prior quarter’s loss of ₹0.16 crore.

The available EBITDA-margin figures were 36.7% in Q3 FY25 and 79.3% in Q4 FY25. No EBITDA margin was reported for the subsequent quarters, including Q2 FY27. The supplied data does not provide a streak for the current period.

What else did the company announce?

The board approved the standalone unaudited financial results for the quarter and half-year ended September 30, 2026, together with the statement of assets and liabilities and the statement of cash flows, along with the limited review report. The meeting was held on October 29, 2026. The company also approved the appointment of M/s. R & A Associates, Company Secretaries, as Secretarial Auditor for FY2026-27, based on the Audit Committee’s recommendation. The appointment was made under Section 204 of the Companies Act, 2013, and the firm conducted the company’s Secretarial Audit for FY2025-26.

What did the auditors point out?

The auditors issued an adverse conclusion on the standalone financial statements for the quarter and half-year ended September 30, 2026. They said the statement had not been prepared in accordance with the recognition and measurement principles in Ind AS 34 and contained a material misstatement; in their view, preparation on the going-concern basis was not appropriate in the circumstances of the company. They also stated that the statement did not appropriately disclose information required under Regulation 33 of the Listing Regulations.

The auditors cited the absence of active revenue-generating business operations as at September 30, 2026, continuing debit restrictions on bank balances and an unresolved claim of Rs. 12,05,23,699. They said these conditions went beyond a material uncertainty and indicated that the company had no realistic alternative but to cease operations. Management had not furnished an approved business plan, executed or committed customer contract, financing arrangement or other evidence demonstrating a realistic prospect of resuming revenue-generating operations or meeting obligations over at least twelve months from the end of the reporting period.

How did Infronics Systems shares react?

How did other Software Products companies do?

Ten other Software Products companies filed for the quarter. Their median revenue growth was 10.2%, as of 4 November 2026. Seven of the 13 peers covered for profit reported higher profit. The supplied peer data does not give the number of other companies whose revenue grew faster or slower than Infronics Systems.