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3i Infotech announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a consolidated profit of ₹35.11 crore, a significant increase from ₹25.35 crore in the previous fiscal year. However, consolidated revenue saw a slight decrease, falling to ₹693.36 crore from ₹725.76 crore in FY25.
The company's board approved the audited financial statements for FY26. While profit rose, auditors issued a qualified opinion on the consolidated results due to legacy issues, specifically impacting the Mauritius subsidiary. Additionally, an adverse opinion was given on the Dubai subsidiary's accounts concerning receivable recoverability. The company also announced the appointment of Mr. Anand Savla to its senior management and approved the establishment of a new subsidiary in Thailand.
These audit opinions raise questions about the accuracy and completeness of the company's financial reporting, especially regarding historical issues and subsidiary operations. The situation is further complicated by ongoing investigations from SEBI and police into past alleged offenses, creating uncertainty for investors.
3i Infotech has been undergoing a turnaround, concentrating on its core IT services and digital transformation capabilities. In the past, the company raised capital through a Qualified Institutional Placement (QIP) to strengthen its finances. The SEBI investigations, specifically into alleged market manipulation related to past transactions, are a continuing area of focus.
In addition to approving the financial results, the board's actions signal forward movement. The appointment of Mr. Anand Savla strengthens senior management. The company is also expanding geographically by establishing a Thailand subsidiary, while streamlining operations through the closure of its Netherlands unit. Proposed changes to the Employee Stock Option Scheme 2023 will require shareholder approval.
Key risks remain prominent. The auditors' qualified opinion on the consolidated results is linked to legacy matters impacting the Mauritius subsidiary. Furthermore, the adverse opinion on the Dubai subsidiary highlights concerns about receivable recoverability. Auditors also noted a material uncertainty regarding the going concern basis for certain subsidiaries. Investors continue to watch the progress of ongoing police and SEBI investigations into historical alleged offenses.