Innovassynth Investments Limited has released its unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26), revealing a widened consolidated loss primarily due to the financial performance of its associate company, Innovassynth Technologies (India) Limited. The results were reviewed and recommended by the Audit Committee and approved by the Board of Directors in a meeting held on August 14, 2025.

The consolidated financial performance showed a total loss of ₹699.52 lakh in Q1 FY26 compared to a loss of ₹586.42 lakh in the corresponding quarter of the previous year. The decline was largely due to the share of loss from the associate company, which stood at ₹677.84 lakh for the quarter. This contrasted sharply with a profit share of ₹419.06 lakh in the preceding March 2025 quarter, highlighting the volatility linked to the associate’s results.

On a standalone basis, Innovassynth Investments reported a loss of ₹21.88 lakh in Q1 FY26, against a loss of ₹17.59 lakh in the same quarter last year. The company reported no revenue from operations in both standalone and consolidated results, continuing its reliance on other income sources and investments for profitability.

The company’s expenses for the quarter remained relatively stable, with employee benefit expenses at ₹3.02 lakh, finance costs at ₹11.28 lakh, and other expenses at ₹7.48 lakh. There was no depreciation or amortisation expense reported during the quarter. Total consolidated expenses amounted to ₹21.78 lakh, marginally higher than the previous year’s ₹17.59 lakh.

A major corporate development influencing these financials is the proposed merger with Innovassynth Technologies (India) Limited. The Draft Scheme of Merger by Absorption, approved by the Board in August 2024, sets October 1, 2024 as the appointed date, subject to approval from the National Company Law Tribunal (NCLT). The application remains pending, and all expenses related to the merger have been classified as exceptional items, amounting to ₹0.10 lakh in Q1 FY26.

The company’s auditors, P G Bhagwat LLP, conducted a limited review of the financial results in accordance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations. They confirmed that the statements were prepared in compliance with Indian Accounting Standards (Ind AS) and found no material misstatements. However, they noted that the consolidated loss was heavily impacted by the associate company’s performance, which was audited separately by another auditor.

The Board also noted the pending implementation of the Code on Social Security, 2020, which has received Presidential assent but awaits an effective date and final rules. The impact on the company’s financial statements will be assessed once the rules are notified.

Earnings per share (EPS) for Q1 FY26 stood at ₹-2.50 on a consolidated basis, compared to ₹1.42 in the previous quarter and ₹-2.42 in Q1 FY25. On a standalone basis, EPS was ₹-0.08, mirroring last year’s negative EPS for the same quarter.

Key Financial Highlights:

• Consolidated loss: ₹699.52 lakh in Q1 FY26 vs. ₹586.42 lakh in Q1 FY25.

• Standalone loss: ₹21.88 lakh in Q1 FY26 vs. ₹17.59 lakh in Q1 FY25.

• No operational revenue reported during the quarter.

• Finance costs: ₹11.28 lakh in Q1 FY26.

• Merger expenses: ₹0.10 lakh classified as exceptional items.

The company’s paid-up equity share capital remained unchanged at ₹2,798.43 lakh (face value ₹10 per share). The absence of operational revenue indicates that investment returns and associate performance remain key drivers of financial results.

Looking ahead, Innovassynth Investments’ performance in the coming quarters will largely hinge on the progress of the Innovassynth Technologies merger, regulatory approvals from the NCLT, and the financial turnaround of its associate company. Until then, expenses, finance costs, and merger-related charges will continue to weigh on the bottom line.

Given the company’s current business structure, the merger is expected to streamline operations, consolidate resources, and potentially create new opportunities for profitability. However, the immediate outlook suggests that financial volatility may persist in the short term due to the dependency on the associate’s results and the lack of core operational revenue.

This Q1 FY26 performance serves as a reminder of how closely Innovassynth Investments’ results are tied to its associate company, making corporate restructuring and strategic investments crucial for its future growth.

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