💰 Financial Performance

Revenue Growth by Segment

Total income grew by 26.9% YoY, reaching INR 3.09 Cr (309.07 Lakhs) in H1 FY26 compared to INR 2.44 Cr (243.55 Lakhs) in H1 FY25. Segment-specific revenue breakdown is not disclosed in the available documents.

Profitability Margins

Net Profit Margin improved to 13.63% in H1 FY26 from 10.26% in H1 FY25. Profit for the period stood at INR 0.42 Cr (42.14 Lakhs) for H1 FY26, representing a 68.7% YoY increase from INR 0.25 Cr (24.98 Lakhs).

EBITDA Margin

Operating profit before working capital changes was INR 0.85 Cr (85.22 Lakhs) for H1 FY26, a margin of 27.57%, compared to INR 1.02 Cr (102.46 Lakhs) in H1 FY25, a margin of 42.07%. The margin compression of 1,450 bps is primarily due to increased operational expenses.

Capital Expenditure

The company incurred INR 0.36 Cr (35.97 Lakhs) in capital expenditure for property, plant, and equipment during H1 FY26, compared to zero expenditure in the previous year's corresponding period.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company reported finance costs of INR 0.47 Cr (46.58 Lakhs) for H1 FY26, down 6.7% from INR 0.50 Cr (49.95 Lakhs) in H1 FY25.

⚙️ Operational Drivers

Raw Materials

As an IT services company, the primary 'raw material' is human capital. Employee benefit expenses accounted for INR 1.77 Cr (177.27 Lakhs), representing 57.3% of total income in H1 FY26.

Capacity Expansion

The company is significantly expanding its financial capacity, with the Board approving an increase in Authorized Share Capital to INR 225 Cr and an investment/loan limit of INR 500 Cr to support growth.

Raw Material Costs

Employee costs (primary operational cost) increased by 73% YoY from INR 1.02 Cr (102.46 Lakhs) in H1 FY25 to INR 1.77 Cr (177.27 Lakhs) in H1 FY26, indicating aggressive hiring or wage hikes to support new projects.

Manufacturing Efficiency

Not applicable for software services; however, the company generated a profit before tax of INR 0.57 Cr (56.94 Lakhs) on a total income of INR 3.09 Cr, reflecting an operational efficiency (PBT margin) of 18.4%.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company plans to achieve growth through a massive capital infusion, including a Qualified Institutional Placement (QIP) of up to INR 200 Cr and a global fund-raising pool of up to USD 100 Million. These funds are earmarked for 'emerging growth opportunities,' working capital strengthening, and potential strategic initiatives to deliver stakeholder value.

Products & Services

Software development, IT consulting, and technology solutions (implied by 'California Software Company Limited' and 'Revenue from Operations').

Brand Portfolio

Calsoft, California Software Company Limited.

Market Expansion

The company is seeking approval for global fundraising (USD 100 Million), suggesting plans for international market expansion or large-scale global acquisitions.

🌍 External Factors

Industry Trends

The IT services industry is shifting toward high-value digital transformation; Calsoft's massive fundraise (INR 200 Cr+) relative to its current small revenue base (INR 6 Cr annualized) suggests a pivot toward scaling operations to meet these technology shifts.

Competitive Landscape

Competes with global and Indian IT service providers; currently operates as a micro-cap player seeking to scale rapidly.

Competitive Moat

The company's moat is currently unclear due to its small scale, but its ability to access large-scale institutional capital (QIP) suggests a level of financial credibility or a strategic roadmap that attracts institutional investors.

Macro Economic Sensitivity

The company's plan to raise USD 100 Million makes it highly sensitive to global interest rate environments and USD/INR exchange rate fluctuations.

⚖️ Regulatory & Governance

Industry Regulations

The company is dealing with GST Input Tax Credit (ITC) reconciliation issues for the 6 months ended September 2025, where matching with GSTR-2A/2B is pending, potentially impacting tax efficiency.

Taxation Policy Impact

The company faces regulatory scrutiny with INR 3.80 Cr (380.02 Lakhs) in current tax assets subject to reconciliation and pending TDS liabilities that are expected to be paid with interest.

Legal Contingencies

The company is in the process of confirming trade receivables of INR 20.96 Cr; failure to confirm or recover these could lead to legal disputes or significant financial write-offs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of trade receivables (INR 20.96 Cr), which is significantly higher than the company's annual revenue, posing a threat to going concern if not realized.

Third Party Dependencies

High dependency on institutional investors for the success of the proposed INR 200 Cr QIP to fund future operations.

Credit & Counterparty Risk

Extremely high credit exposure as evidenced by the trade receivables balance of INR 20.96 Cr, which is currently under reconciliation and confirmation.