Saksoft Ltd’s record is clean on audit: eight years of unqualified opinions, no fraud or wilful default, and operating cash flow that has covered reported profit in every year since FY21. Two things deserve attention. First, consolidated goodwill and standalone subsidiary investments are 48% and 46% of total assets respectively, yet no impairment has ever been recorded, and the auditor flags both as Key Audit Matters every year. Second, the group is a dense web of wholly-owned subsidiaries in continuous M&A, and two of them were unaudited as recently as FY25.
Key findings
- Goodwill and subsidiary investments dominate the balance sheet, yet no impairment has ever been recorded
Major- Consolidated goodwill rose from ₹140.3 crore (46% of total assets) at 31 March 2020 to ₹518.15 crore (48% of total assets) at 31 March 2026, with no impairment recognised in any intervening year. Standalone investments in subsidiaries held at cost rose from ₹117.25 crore (76% of total assets) to ₹237.9 crore (46% of total assets) over the same period, also with no impairment. The auditor has designated both goodwill impairment and impairment of equity investments in subsidiaries as Key Audit Matters, an area needing the most judgement, in every annual report from FY2019 through FY2026. - Revenue is heavily concentrated, and a prior-year customer default drove a bad-debt provision
Minor- The top 20 clients contributed \~70% of revenue in FY26, and the top 10 accounted for \~58%. Two customers each contributed 10% or more of revenue in FY25 and FY24, and the top five customers accounted for 40% of revenue in FY25 and 44% in FY24. The CFO stated in the Q4 FY26 call that a customer “had gone bust in the last quarter” of the prior year and a provision for bad debts was recorded, while “in this year, we have had no such provisions, no significant such provisions”. - Promoter family appointments and independent director turnover raise governance questions
Minor- Mr. Aditya Krishna, Promoter Chairman & MD, was re-appointed for five years from 1 April 2026 at a basic salary of ₹10 lakhs per month with a minimum-remuneration clause for loss-making years. His daughter Ms. Avantika Krishna was appointed Whole-time Director effective 25 May 2026, and another daughter, Ms. Kanika Krishna, has served as Non-Executive Non-Independent Director since at least FY2018-19. Mr. Ajit Thomas was re-designated from Non-Executive Independent Director to Non-Executive Non-Independent Director effective 8 August 2024, just before his second independent term expired on 26 September 2024. - The group is a dense web of wholly-owned subsidiaries with continuous M&A and two unaudited subsidiaries
Minor- All subsidiaries and step-down subsidiaries are 100% held as of FY26. During FY25, Saksoft Ltd acquired 100% stakes in three new Indian subsidiaries, and the Board approved a Scheme of Amalgamation on 8 August 2025 to merge one of them, Augmento Labs, into Saksoft Limited. The auditor reported that two subsidiaries’ financial statements were unaudited for the year ended 31 March 2025, reflecting total assets of ₹4.42 crore and total revenues of ₹4.01 crore. - A ₹13.96 crore deferred tax asset on a long-term capital loss remains unrecognised, and FY26 introduced a ₹4.87 crore exceptional provision
Minor- A long-term capital loss carried forward of ₹13.96 crore has had no deferred tax asset recognised against it from FY2019 through FY2023 because the probability of reversal is not certain in the foreseeable future. In FY26, the Group recognised an exceptional item of ₹4.87 crore for a one-time increase in the provision for employee benefits due to the New Labour Codes effective 21 November 2025. In the half-year ended 30 September 2025, the company recorded a reassessment of contingent consideration of ₹1.51 crore in its unaudited results. - The same audit firm has served continuously since at least FY2019, with a signing partner change in FY2025
Minor- R.G.N. Price & Co., Chartered Accountants, has been the statutory auditor from at least the FY2018-19 annual report through the FY2025-26 annual report. The signing partner changed from Mahesh Krishnan (signing the FY2024 report) to S. Aditya Kumar (signing the FY2025 and FY2026 reports). The auditors were reappointed at the 23rd AGM on 9 August 2022 for a five-year term ending at the 28th AGM, with 99.99% votes in favour. - Audit opinions consistently unqualified; no fraud reported
Clean- The standalone and consolidated audit opinions were unqualified in every year from FY19 through FY26. No fraud by or on the company was reported by the statutory auditors or secretarial auditors under Section 143(12) in any year from FY19 through FY26. The audit trail feature operated throughout FY26 for all relevant transactions, and no instance of tampering was observed. - Operating cash flow consistently covers reported profit, and dividends are the primary capital-allocation channel
Clean- Cumulative CFO of ₹623 crore exceeded cumulative PAT of ₹529 crore over FY21-FY26, with annual CFO/PAT ratios ranging from 1.02x to 1.54x. CWIP stood at zero and total borrowings were ₹29.19 crore against cash of ₹251 crore as of FY26. Total dividend per share rose from ₹0.70 in FY23 to ₹1.00 in FY26.
What to watch
- Final dividend approval. The final dividend of ₹0.55 per share for FY26 is subject to shareholder approval at the AGM on 7 August 2026.
- Auditor term expiry. The statutory auditor’s term expires at the conclusion of the 28th AGM in FY2027-28.
- Augmento Labs amalgamation. Completion of the Scheme of Amalgamation for Augmento Labs Private Limited into Saksoft Limited remains subject to regulatory approvals as of the FY2025-26 Annual Report.
- Deferred tax asset resolution. The ₹13.96 crore long-term capital loss deferred tax asset has remained unrecognised since at least FY2019, as reported in the FY2025-26 Annual Report.
- Contingent consideration settlement. Final accounting treatment and settlement of the contingent consideration reassessed at ₹1.51 crore in H1 FY2026, as reported in the FY2025-26 Annual Report.
Bottom line: This is a disclosed and audited record with real cash conversion and an unbroken run of clean opinions. The risk sits in the balance-sheet structure: goodwill and subsidiary investments that together represent 48% and 46% of total assets respectively and have never been tested by an impairment charge, in a group that is continuously reshaping itself through M&A. Read the goodwill and investment lines with that in mind, and watch whether the Augmento Labs amalgamation closes and the long-unrecognised deferred tax asset finds resolution.