Switching Technologies posts ₹6.55 cr profit, but it's mostly a write-back and a sale
The nano-cap swung to profit after writing back ₹16.10 cr in liabilities, but the real story is the business being sold for ₹4.25 cr.
— 2 earlier stories on Switching Technologies Gunther Ltd. →What's new
- Net profit of ₹6.55 cr reverses a ₹6.78 cr loss, but hinges on a ₹16.10 cr exceptional write-back.
- Received ₹3 cr advance from Canolli Manufacturing for the ₹4.25 cr slump sale of the business.
- Change in control to Touristas Horizons and BBU Enterprises, who acquired 20.64%, is confirmed.
Why this matters
The headline profit is not from core operations. The ₹6.55 cr bottom line is entirely a product of the ₹16.10 cr write-back. Strip that out, and the company was still loss-making. The advance for the slump sale confirms this entity's future is as a shell.
What we're watching
- Final terms and closure of the ₹4.25 cr slump sale to Canolli Manufacturing.
- Any regulatory filings detailing the new owners' plans post-change of control.
- What remains in the company after the business transfer is complete.
The full read
Switching Technologies Gunther's ₹6.55 crore profit is a mirage. The number exists because the company wrote back ₹16.10 crore in inter-company liabilities as an exceptional item. Subtract that, and the core business lost money. Meanwhile, the company is liquidating. It has received a ₹3 crore advance toward the ₹4.25 crore sale of the entire business to Canolli Manufacturing. The new owners, Touristas Horizons and BBU Enterprises, who now hold 20.64%, have been confirmed. For a nano-cap, this is a complete corporate overhaul dressed up as an annual results filing. The operating entity is being sold, the balance sheet is being cleaned, and the nameplate may be all that remains.
Questions answered
- How did Switching Technologies Gunther make a ₹6.55 cr profit?
- The profit comes almost entirely from a ₹16.10 cr exceptional write-back of inter-company liabilities. Without this one-time item, the company would have posted another loss for the year.
- What is the slump sale and who is buying?
- The company is selling its business as a going concern to Canolli Manufacturing Private Limited for ₹4.25 crore. It has already received a ₹3 crore advance, meaning the deal is largely funded and near closure.
- Who now controls the company?
- Touristas Horizons and BBU Enterprises acquired a 20.64% stake in May, triggering a change in control. The audited results officially confirm this new ownership structure.
- What does this mean for the company's future?
- The business is being sold for ₹4.25 cr, and a large liability was written off the books. After the sale closes, Switching Technologies Gunther will likely be a shell entity, with its operational future tied to the new owners.
Story so far
All notes on SWITCHTE →- 25 May 2026 · 3:36 PM IST Switching Technologies posts ₹6.55 cr profit, but it's mostly a write-back and a sale
- today Switching Technologies' promoter sells entire 37.6% stake
- 11d ago Switching Technologies adds three directors, posts FY26 results