Kernex Microsystems reports Q2 and half-year financials, auditors note concerns

Kernex Microsystems (India) Limited announced its unaudited consolidated financial results for the quarter ended September 30, 2025, with total income at INR 4,760.48 lakhs and profit before tax from continuing operations at INR 910.36 lakhs. For the half-year ended September 30, 2025, consolidated total income reached INR 10,389.61 lakhs, with profit before tax from continuing operations at INR 1,865.54 lakhs. The consolidated profit after tax for the half-year was INR 1,393.30 lakhs.

On a standalone basis, the company reported total income of INR 4,610.44 lakhs for the quarter and INR 10,012.11 lakhs for the half-year ended September 30, 2025. Standalone profit before tax from continuing operations stood at INR 508.62 lakhs for the quarter and INR 1,459.12 lakhs for the half-year. The standalone profit after tax for the half-year was INR 986.87 lakhs.

The company's statutory auditors included an Emphasis of Matter in their report concerning the recoverability of certain financial assets, particularly INR 422.73 lakhs in trade receivables outstanding for over three years and bank guarantees of INR 265.03 lakhs currently under arbitration. The management believes these assets are fully recoverable. Additionally, the auditors qualified their report on standalone financials due to non-recognition of an impairment loss of INR 1,275.97 lakhs related to investment in Avant-Garde Infosystems, Inc., a wholly-owned foreign subsidiary.