Sagarsoft (India) Limited Reports Q1 FY27 Financial Results: Turnaround to Net Profit of ₹289.34 Lakhs on 34.3% YoY Revenue Growth

Sagarsoft (India) Limited, an IT services company headquartered in Jubilee Hills, Hyderabad, has published its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company recorded a sharp operational turnaround, swinging back into profitability after reporting losses in the previous quarters.

Revenue and Income Overview

For the quarter ended June 30, 2026, Sagarsoft reported consolidated revenue from operations of ₹5,448.61 lakhs. This reflects a 34.29% year-over-year increase compared to ₹4,057.25 lakhs recorded in Q1 FY26, as well as a sequential expansion of 45.81% over ₹3,736.86 lakhs in Q4 FY26.

Including other income of ₹25.67 lakhs (down from ₹143.55 lakhs in Q4 FY26 and ₹49.25 lakhs in Q1 FY26), total consolidated income for Q1 FY27 reached ₹5,474.28 lakhs, compared to ₹4,106.50 lakhs in Q1 FY26.

Operating Expenditure Breakdown

Total consolidated expenses for Q1 FY27 stood at ₹5,169.67 lakhs, compared to ₹4,526.93 lakhs in Q1 FY26 and ₹4,795.27 lakhs in Q4 FY26.

Major expense categories during the quarter included:

Employee Benefits Expense: ₹3,519.77 lakhs (vs. ₹3,242.10 lakhs in Q1 FY26 and ₹3,252.20 lakhs in Q4 FY26)

Outsourcing Costs: ₹1,250.50 lakhs (vs. ₹816.75 lakhs in Q1 FY26 and ₹822.77 lakhs in Q4 FY26)

Other Expenses: ₹312.35 lakhs (down from ₹373.79 lakhs in Q1 FY26 and ₹275.61 lakhs in Q4 FY26)

Depreciation and Amortization Expense: ₹68.69 lakhs (down from ₹78.45 lakhs in Q1 FY26 and ₹91.87 lakhs in Q4 FY26)

Finance Costs: ₹18.36 lakhs (vs. ₹15.84 lakhs in Q1 FY26)

Notably, no impairment on intangible assets was recorded during the quarter (compared to ₹335.81 lakhs in Q4 FY26).

Profitability and Net Earnings Turnaround

The surge in top-line growth coupled with controlled operating costs enabled Sagarsoft to post a Profit Before Tax (PBT) of ₹304.61 lakhs for Q1 FY27, turning around from a loss before tax of ₹420.43 lakhs in Q1 FY26 and a loss before tax of ₹914.86 lakhs in Q4 FY26.

Tax and Profit After Tax (PAT)

Total Tax Expense: Stood at ₹15.27 lakhs (comprising current tax of ₹37.57 lakhs offset by a deferred tax credit of ₹22.30 lakhs).

Net Profit After Tax (PAT): Reached ₹289.34 lakhs, executing a strong recovery from net losses of ₹430.83 lakhs in Q1 FY26 and ₹903.95 lakhs in Q4 FY26.

Profit Attributable to Shareholders of Holding Company: ₹196.09 lakhs (vs. a loss of ₹240.40 lakhs in Q1 FY26).

Profit Attributable to Non-Controlling Interest: ₹93.25 lakhs (vs. a loss of ₹190.43 lakhs in Q1 FY26).

Comprehensive Income & EPS

Other Comprehensive Income (OCI): Recorded a net gain of ₹7.72 lakhs for the quarter (net of tax).

Total Comprehensive Income: Stood at ₹297.06 lakhs (with ₹204.44 lakhs attributable to equity shareholders of the holding company and ₹92.61 lakhs attributable to non-controlling interest).

Earnings Per Equity Share (EPS): Basic and diluted EPS for Q1 FY27 swung positive to ₹3.07 per share (face value of ₹10 each), up from a negative EPS of ₹(3.76) in Q1 FY26 and ₹(10.22) in Q4 FY26.

Capital Structure

Paid-Up Equity Share Capital: Remained unchanged at ₹639.22 lakhs (shares of face value ₹10 each).

Other Equity: Stood at ₹6,360.32 lakhs as of the full-year audited balance sheet date of March 31, 2026.

Shares of Sagarsoft (India) Ltd was last trading in BSE at Rs. 73.99 as compared to the previous close of Rs. 73.26. The total number of shares traded during the day was 1218 in over 20 trades.

The stock hit an intraday high of Rs. 75.74 and intraday low of 70.00. The net turnover during the day was Rs. 88025.00.

Source : Equity Bulls

Keywords

SagarsoftIndia INE184B01012 Q1FY27 Q1FY2027 ResultUpdate