FATN Fatpipe Inc/UT

Overview and Growth

Fiscal 2026 results for Fatpipe Inc/UT combined $19.21M of revenue with net income of $4.97M and an operating cash outflow of $780.39K. Revenue of $19.21M sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $16.29M in fiscal 2025, revenue recorded a 17.9% year-over-year increase. On a per-share basis, diluted EPS was $0.35, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 133.3% from $0.15 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 0.56x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $17.48M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 91.0% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $3.59M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 18.7%, showing how efficiently sales converted into operating profit. Net income came to $4.97M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 25.9% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $3.49M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 18.2%, relating income before taxes directly to revenue. The reported tax benefit was $1.48M, favorably bridging the pretax and after-tax results. The effective tax-benefit relationship was 42.6% of positive pretax income. The relationship between net income and period-end equity was 19.7%, indicating the profitability achieved on book capital. Return on period-end assets was 14.4%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

At period end, the $34.52M asset base was financed through $9.31M of liabilities and $25.22M of equity. At period end, current assets of $16.46M compared with current liabilities of $4.27M, defining the company’s short-term resource position. At 3.85x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $5.21M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 122.1% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $5.02M, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.2x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 14.5%, showing how much of the asset base was matched by borrowing. Liabilities represented 27.0% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 15.1%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 22.0% higher than fiscal 2025 assets of $28.29M, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Operating activities used $780.39K of cash, resulting in an operating cash outflow for the year. Capital spending of $52.48K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $832.88K, leaving a cash deficit after capital spending and reducing financial flexibility. Relative to revenue, the post-investment cash deficit represented 4.3%. The free-cash-flow deficit equaled 2.4% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Mar 31, 2026. Analysis generated Sep 24, 2026.