California Software Company Limited Earnings Summary — Q1 FY2027
California Software Reports Robust Q1 FY2027 Revenue Growth Despite Auditor Qualifications on Receivables
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 52.7% sequentially in Q1 FY2027.
- Revenue of ₹7 Cr is 327.7% higher year-on-year.
- Revenue has compounded at 130.8% annualised over the last 10 quarters.
- Net profit of ₹4 Cr is 2105.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 339.3% annualised across the period.
- Operating margin stands at 85.1% in Q1 FY2027.
- Operating margin expanded by 5926 bps year-on-year.
- Over the last two years operating margin has expanded by 4988 bps.
- PBT margin is 83.3%.
- Expense growth of -13.9% remained below revenue growth of 327.7%.
- Operating profit of ₹6 Cr is 1310.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 75/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 7 | 14 | 3 | 2 | 2 | 2 | 1 | 1 | 1 | 1 |
| Expenses | Improving | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Operating Profit | Volatile | 6 | 13 | 2 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Operating Margin | Accelerating | 85.1% | 90.0% | 59.1% | 29.2% | 25.8% | 26.1% | 32.1% | 23.4% | 35.2% | 38.6% |
| Other Income | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Interest | Insufficient data | 0 | — | — | — | — | — | — | — | — | — |
| Depreciation | Stable | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | Accelerating | 6 | 12 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Tax | Volatile | 1 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Profit | Accelerating | 4 | 9 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Margin | Volatile | 63.2% | 65.6% | 39.8% | 14.9% | 12.3% | 15.1% | 15.3% | 7.5% | 15.7% | 14.8% |
Key Takeaways
- Revenue witnessed a substantial YoY surge of 329%, rising from ₹154.59 Lakhs in Q1 FY26 to ₹662.88 Lakhs in Q1 FY27.
- The statutory auditor issued a qualified conclusion, citing ₹2,336.55 Lakhs in trade receivables that are long-pending without expected credit loss provisions.
- Operating efficiencies remained high with margins at 83%, although down slightly from the prior quarter's peak performance.
- Net Profit attributable to owners skyrocketed over 20-fold on a YoY basis, reflecting the company's shift toward high-margin software business.
- Management noted reconciliation issues regarding current tax assets (₹380.02 Lakhs) and pending input tax credit (ITC) matching with GST returns.
- The company's subsidiary, Aspire Communications Private Limited, reported zero revenue and profit for the period, indicating no operational contribution yet.
Management Guidance
Management is focused on the IT and Software development segment, with efforts currently underway to obtain balance confirmations for significant outstanding trade receivables.
Sentiment Shift
Stable
While YoY growth is exceptional, the audit qualifications regarding unprovisioned receivables and tax reconciliation issues create significant transparency risks.
Outlook
The outlook depends heavily on the company's ability to convert its massive trade receivables into cash flow and resolve pending tax and GST reconciliations.
From the Annual Report (Key Quotes)
“The Trade Receivables amounting to ₹ 2336.55 Lakhs contains long pending items with respect to those items provision for expected credit loss is not created.”
“The Company is engaged in primarily in the IT and Software development business and there are no separate reportable segments.”
“Compliance in respect of TDS liability is pending for payment and expected to be made with interest.”
Official Quarterly Documents
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This summary is AI-generated from California Software Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.