California Software Co Ltd reports FY2026 profit surge, qualified audit

California Software Company Limited posted explosive profit growth on a backdrop of soaring revenue, but a qualified audit and negative operating cash flow raise caution.

• Revenue surged 261% YoY to Rs 1,965.76 lakhs and net profit exploded 1,376% YoY to Rs 1,062.63 lakhs, lifting EPS (basic) to Rs 1.72 from Rs 0.12 last year.
• Cash balance jumped to Rs 600.48 lakhs (up from Rs 203.83 lakhs) driven by a Rs 692.64 lakhs financing inflow, while operating cash flow stayed negative at Rs (261.04) lakhs.
• Total assets rose 73% to Rs 5,268.11 lakhs and equity climbed 61% to Rs 4,437.68 lakhs, but current liabilities surged 191% to Rs 830.43 lakhs.
• Auditors issued a qualified opinion, citing an unreconciled tax asset (Rs 380.02 lakhs), a pending investment impairment (Rs 311.38 lakhs), large overdue trade receivables (Rs 1,088.21 lakhs), and insufficient evidence on a Rs 2,000 lakhs foreign‑investment advance.
• Future growth depends on fixing the audit‑related asset issues and turning operating cash flow positive; otherwise the firm will remain financing‑dependent despite strong revenue momentum.