California Software revenue surges but audit flags aged receivables
Q1 FY27 standalone revenue ₹662.88 lakhs, net profit ₹419.39 lakhs. Auditors qualify review citing ₹2,336.55 lakhs unprovided receivables and other lapses.
— 1 earlier story on California Software Company Ltd. →What's new
- Q1 standalone revenue ₹662.88 lakhs, net profit ₹419.39 lakhs, both surged YoY from ₹154.59 lakhs and ₹19.32 lakhs.
- Auditors issued qualified review, flagging ₹2,336.55 lakhs in unprovided trade receivables.
- Also noted unreconciled current tax assets of ₹380.02 lakhs and no impairment testing on subsidiary investments.
Why this matters
The top-line growth is striking for a nano-cap, but the persistent audit qualifications suggest financial controls lag the revenue expansion. Over ₹23 cr of receivables may never be collected, tempering the earnings surge.
What we're watching
- Timeline for provisioning against the ₹2,336.55 lakhs receivables.
- Clarity on the proposed 51% stake in Tech Aggregators P Ltd.
- Any change in auditor or remediation plan for control weaknesses.
The full read
California Software's Q1 FY27 numbers are eye-catching. Standalone revenue hit ₹662.88 lakhs, up from ₹154.59 lakhs a year ago. Net profit surged to ₹419.39 lakhs from ₹19.32 lakhs. For a nano-cap with a ₹148 cr market cap, that kind of growth is rare. But the statutory auditors, K. Gopal Rao & Co., aren't buying the story yet. For the fourth consecutive quarter, they've issued a qualified review, pointing to ₹2,336.55 lakhs in trade receivables that haven't been provisioned for, ₹380.02 lakhs in unreconciled tax assets, and no impairment testing on subsidiary investments. These are not new problems; they've been flagged before. The company's top line is booming, but its balance sheet carries risks that could reverse the gains. Until those audit matters are resolved, the growth story has a caveat.
Questions answered
- How much did revenue and profit grow year-on-year?
- Revenue went from ₹154.59 lakhs to ₹662.88 lakhs. Net profit surged from ₹19.32 lakhs to ₹419.39 lakhs.
- What are the key audit qualifications?
- Long-pending trade receivables of ₹2,336.55 lakhs without expected credit loss provisioning, unreconciled current tax assets of ₹380.02 lakhs, and lack of impairment testing for subsidiary investments.
- Have these audit issues appeared before?
- Yes, the qualifications have persisted from earlier reporting periods, as noted by the auditors.
- What is the company's market capitalization?
- Around ₹148 crore as per latest data, giving a trailing P/E of about 13.9x.
- How does this quarter compare to the previous quarter?
- The prior quarter (Mar 2026) reported sales of ₹14 cr and net profit of ₹9 cr. The current Q1 shows stronger growth.
California Software Company Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on CALSOFT →- 20 Jul 2026 · 9:12 PM IST California Software revenue surges but audit flags aged receivables
- 41d ago California Software to mull 51% stake in Tech Aggregators