3i Infotech Reports Q2 Results Amidst Auditor Qualifications

Revenue stands at Rs 182.01 crore for Q2 FY27, with a profit after tax of Rs 6.72 crore.

Reader Takeaway: Modest revenue growth is offset by persistent auditor red flags regarding subsidiary viability and legacy legal issues.

What just happened

3i Infotech released its Q2 FY27 financial results, reporting a sequential rise in both revenue and profit. Alongside these figures, the company announced the incorporation of a new wholly-owned subsidiary focused on AI with a Rs 1 crore investment and the appointment of Shirsendu Chaudhuri as Chief Growth Officer.

Why this matters

Despite the positive operational metrics, the statutory auditors have issued qualified conclusions. Concerns center on the recoverability of receivables from related parties, such as the Rs 411.21 million exposure in 3i Infotech (Middle East) FZ LLC. Furthermore, auditors highlighted material uncertainty regarding the 'going concern' status of entities including Professional Access Software Development, 3i Infotech (UK), and 3i Infotech (Cyprus) due to accumulated losses.

The backstory

The company is also addressing legacy legal matters. Regarding an Economic Offences Wing (EOW) inquiry, the company stated that authorities indicated on August 13, 2026, that the complaint is civil in nature. The firm is currently consulting forensic auditors to review the related documentation.

Risks to watch

Investors should closely track the resolution of auditor qualifications. The recurring nature of 'going concern' doubts for international units suggests underlying structural challenges that may impact future consolidated financial stability.

Context metrics

Revenue improved from Rs 177.94 crore in Q1 FY27 to Rs 182.01 crore in Q2 FY27. Profit rose from Rs 5.86 crore to Rs 6.72 crore sequentially, though it remains significantly lower than the Rs 25.04 crore reported in Q2 FY26.