Shyama Computronics and Services Ltd Management Discussions

Shyama Computers & Services Limited (Formerly known as Shyama Infosys Limited)

Overview

Shyama Computers and Services Limited (Formerly known as Shyama Infosys Limited) continued to focus on strengthening its business operations and maintaining a stable financial position during the financial year ended March 31, 2026. During the year under review, the Company recorded an improvement in revenue from operations; however, total income and profitability moderated primarily on account of a reduction in other income.

The Company continued to maintain a strong balance sheet with substantial shareholders funds, negligible external borrowings and adequate liquidity.

Financial Performance

The financial performance of the Company for FY 2025-26 as compared with FY 2024-25 is summarized below:

(? in Lakhs)

Particulars	2025-26	2024-25	Change (%)
Revenue from Operations	27.93	24.68	13.14
Other Income	10.14	18.49	-45.12
Total Income	38.07	43.17	-11.83
Total Expenses	22.68	25.75	-11.92
Profit Before Tax	15.38	17.42	-11.71
Profit After Tax	11.40	14.39	-20.78

Revenue from operations increased by approximately 13.14%, indicating growth in the Companys core operating activities. However, other income declined by approximately 45.12%, which resulted in an overall decline in total income of approximately 11.83%.

The Company continued to exercise control over its expenditure. Total expenses decreased by approximately 11.92%, mainly due to a reduction in other expenses, although employee benefit expenses increased during the year.

Profit before tax stood at 15.38 lakhs as against 17.42 lakhs in the previous year. Profit after tax stood at 11.40 lakhs, compared with 14.39 lakhs in FY 2024-25.

Operational Performance

The Company witnessed positive growth in its revenue from operations during FY 2025-26. The increase in operating revenue reflects continued business activity and improvement in the Companys core operations.

Employee benefit expenses increased from 9.08 lakhs to 10.64 lakhs, reflecting an increase in personnel-related expenditure. Other expenses, however, declined from 16.68 lakhs to 12.05 lakhs, demonstrating the Companys efforts towards cost management and operational efficiency.

The Company will continue to focus on strengthening its operating activities, improving efficiency and identifying opportunities for sustainable growth.

Financial Position

As at March 31, 2026, the total assets of the Company stood at approximately 1,038.09 lakhs, compared with 1,021.48 lakhs as at March 31, 2025.

The Companys non-current assets increased marginally from approximately 720.62 lakh to 724.68 lakhs. Investments increased from 223.04 lakhs to 227.88 lakhs, while loans and advances increased marginally from 464.50 lakhs to 467.28 lakhs.

Current assets increased from 300.86 lakhs to 313.41 lakhs. Sundry debtors increased from 299.65 lakhs to 312.45 lakhs, reflecting an increase in receivables during the year.

The Companys shareholders funds stood at approximately 1,024.61 lakhs as at March 31, 2026, as against 1,009.57 lakhs in the previous year. The Company continues to have a strong net worth position.

The Company had no outstanding borrowings as at March 31, 2026. This indicates a very low financial leverage and provides the Company with financial flexibility for its future requirements.

Liquidity and Cash Flow

The Company continued to maintain a comfortable liquidity position during the year. Current assets of approximately 313.41 lakhs were substantially higher than current liabilities of approximately 13.49 lakhs.

The current ratio was approximately 23.25 times as at March 31, 2026, compared with approximately 25.26 times in the previous year. Although the ratio moderated marginally, the Company continues to maintain a strong short-term liquidity position.

Cash and cash equivalents stood at approximately 0.96 lakhs as at March 31, 2026, compared with 1.21 lakhs in the previous year.

Cash flow from operating activities was marginally negative at approximately 0.25 lakhs, as compared with negative operating cash flow of approximately 20.88 lakhs in the previous year. The significant improvement in operating cash flow indicates better management of operating cash requirements during the year, notwithstanding the increase in receivables.

There was no significant investing or financing cash flow during the year.

Key Financial Ratios

Ratio	2025-26	2024-25
Net Profit Margin	29.94%*	33.34%*
Current Ratio	23.25	25.26
Debt-Equity Ratio	Nil	Nil
Return on Equity	Approx. 1.11%	Approx. 1.43%

*Net profit margin calculated with reference to total income.

The Company continues to maintain a debt-free capital structure, which reduces financial risk and interest burden. The reduction in profitability during the year has resulted in moderation in return ratios.

Strengths

The key strengths of the Company include:

? Growth in revenue from operations during the year.

? Strong net worth and shareholders funds.

? Absence of external borrowings, resulting in a debt-free balance sheet.

? Strong current asset position and comfortable liquidity.

? Reduction in overall operating expenses.

? Improvement in operating cash flow compared with the previous year.

Opportunities

The Company may continue to explore opportunities for expansion of its core business activities and enhancement of operating revenues. The growth in revenue from operations during the year provides a positive base for further strengthening the Companys operating performance.

Improved utilization of available financial resources and focused management of receivables may further support the Companys growth and cash generation.

Risks and Concerns

The Companys performance may be affected by general economic conditions, changes in market conditions, competition, regulatory developments and other factors affecting its business operations.

The increase in sundry debtors during the year also requires continued monitoring of receivables and collection cycles. Further, the decline in other income highlights the importance of strengthening the Companys core operating revenue and reducing dependence on non-operating income.

The Company continues to monitor these factors and intends to adopt appropriate measures to mitigate associated risks.

Human Resources

Human resources continue to remain an important component of the Companys operations. Employee benefit expenses increased during FY 2025-26, reflecting continued investment in personnel. The Company believes that a capable and motivated workforce is essential for maintaining operational efficiency and achieving sustainable growth.

The Company continues to maintain a professional and conducive work environment and remains committed to developing its human resources.

Internal Control Systems

The Company maintains appropriate internal control systems commensurate with the size and nature of its operations. These controls are intended to ensure proper recording of transactions, safeguarding of assets, prevention and detection of errors and compliance with applicable laws and regulations.

The management periodically reviews the adequacy and effectiveness of internal controls and takes appropriate corrective measures wherever necessary.

Outlook

The Companys outlook remains focused on strengthening its core operating activities, improving operational efficiency and maintaining financial discipline. The increase in revenue from operations during FY 2025-26 provides a positive indication of the Companys underlying business activity.

Going forward, the Company will continue to focus on improving operating performance, prudent cost management, efficient utilization of resources and sustainable growth while maintaining its strong and largely debt-free financial position.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, market conditions, business risks, regulatory developments and other unforeseen circumstances. The Company assumes no responsibility for updating such forward-looking statements based on subsequent developments.