🧠 At a glance
Brightcom Group Ltd (BCG) just declared its FY25 results: ₹5,146 Cr in revenue and ₹710 Cr in profit. But the stock’s at ₹10.2 — down 91% from its ₹118 peak. Why? Because the auditor basically said: “We don’t believe any of this until SEBI tells us it’s okay.” The SEBI show-cause notices, the confirmatory orders, the ghost subsidiaries, the mystery assets — it’s all there.
If this was a movie, it would be called:
“Fake It Till You Get Investigated.”
🏢 About the Company
Brightcom Group Ltd (formerly Lycos Internet) is allegedly in the digital advertising and software development business — but spends more time in courtrooms than client meetings. The company says it operates across 25+ countries, yet fails to submit audited numbers for half of them.
Let’s break down the FY25 results, but more importantly — the red flags taped all over them.
💸 FY25 Consolidated Financials
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Revenue | ₹5,146.67 | ₹4,662.24 |
| EBITDA (approx) | ₹1,012.47 | ₹954.32 |
| Net Profit (PAT) | ₹710.03 | ₹686.75 |
| EPS | ₹3.52 | ₹3.41 |
| Total Assets | ₹9,800.13 Cr | ₹8,764.43 Cr |
| Equity Capital | ₹403.70 Cr | ₹403.70 Cr |
On paper, this looks like a profitable tech giant.
In reality, it’s what happens when fiction meets filings.
📉 The Fall from Glory
| Date | CMP (₹) | Comment |
|---|---|---|
| Jan 2022 | ₹118 | Retail frenzy, big bull talk |
| Apr 2023 | ₹64 | SEBI investigation begins |
| Feb 2024 | ₹28 | Confirmatory order hits |
| May 2025 | ₹10.20 | Stock officially on life support |
From unicorn to unlisted-in-spirit. This is what a 91% fall looks like when corporate governance dies.
🧠 EduInvesting Take
“If your auditor uses phrases like ‘we don’t know’, ‘not confirmed’, and ‘SEBI has ordered a redo’ — you’re not investing. You’re gambling on karma.”
Brightcom isn’t a bad company — it’s a financial crime thriller disguised as one.
🧾 Audit Report: A Masterclass in Disclaimers
Both standalone and consolidated audit reports were issued with a Qualified Opinion by PR Chandra & Co. Here’s what they said:
🚨 Qualified Opinion Reasons:
- SEBI ordered re-audit of FY15–FY22
→ Opening balances not reliable. Closing balances likely wrong too. - 14 foreign subsidiaries unaudited
→ BCG just assumed their data is correct. - SEBI Show Cause Notice (SCN) on fake financials
→ Ongoing legal battle. Promoter shareholding under scrutiny. - Investment in Vuchi Media still not impaired
→ ₹168.86 Cr stuck in a revoked acquisition. - 1.4 Cr equity shares issued to Vuchi still not cancelled
→ Overhanging dilution risk, legally unresolved. - Negative net worth in Ybrant Media (subsidiary)
→ Yet no write-off or provision made. - Company failed to publish standalone results of subsidiaries for FY15–FY22 as directed by SEBI
→ Basic compliance? What’s that?
🕵️ Let’s Talk About That Vuchi Media Mess
In 2021, BCG proudly announced its ₹850 Cr acquisition of Vuchi Media.
Then… the deal was revoked.
But:
- ₹168.86 Cr investment not reversed
- 1.4 Cr shares issued at ₹120.02 still pending cancellation
- Auditor says: “This needs to go. Why is it still here?”
Imagine marrying someone, filing joint taxes, and then saying “actually we never got married”. That’s what this looks like.
📦 Segment Breakdown (FY25)
| Segment | Revenue (₹ Cr) | PBT (₹ Cr) |
|---|---|---|
| Digital Marketing | ₹4,733.12 | ₹1,014.18 |
| Software Development | ₹413.55 | ₹5.34 |
| Total | ₹5,146.67 | ₹1,019.52 |
But wait… if revenue is 90% from foreign digital ops, and half the subsidiaries aren’t audited — how reliable is this?
Exactly.
🔥 Cash Flow Analysis (FY25)
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Net Cash from Operations | ₹174.57 | ₹133.67 |
| Cash from Investing | ₹-370.89 | ₹-410.32 |
| Cash from Financing | ₹149.40 | ₹73.27 |
| Net Cash Change | ₹-54.95 | ₹-203.37 |
| Closing Cash Balance | ₹1,153.39 | ₹1,208.35 |
💡 Most of the cash is from FX fluctuations and loans. Core business generation? Still murky.
🧮 EduFair Value Estimate
Let’s humor the valuation based on their own EPS.
- EPS = ₹3.52
- But with all audit qualifications, assume haircut of 70%
- Effective EPS = ₹1.05
- Max PE you’d give for a scam-tainted stock = 8x
EduFair Value: ₹8.40
CMP is ₹10.2 — still overpriced for the risk it carries.
🧨 SEBI Order Summary
🔍 13 April 2023 – SEBI Interim Order
- Fake accounting
- Misstatement of investments
- Overstated receivables
- Failure to disclose foreign subs results
🧑⚖️ 22 August 2023 – Confirmatory Order
- Directed peer-reviewed audit of FY15–FY22
- Shareholding freezes
- Possible clawback of promoter gains
🪓 Impact?
- Entire investor community bailed
- Brokers stopped coverage
- Auditor added “we cannot confirm any number”
- And BCG turned into a penny stock
🧾 Shareholding Pattern (Not Yet Clear)
Auditor notes that even promoter holdings may be inaccurate due to pending SEBI directives.
You heard that right.
Even the promoters may not know how much of the company they own.
🚨 Risk Dashboard
| Red Flag | Severity |
|---|---|
| SEBI Show-Cause & Confirmatory Orders | 🚨🚨🚨🚨🚨 |
| 14 unaudited foreign subsidiaries | 🚨🚨🚨🚨 |
| Vuchi Media ₹169 Cr impairment pending | 🚨🚨🚨 |
| Promoter shareholding under dispute | 🚨🚨 |
| Auditors say “we don’t know” | 🚨🚨🚨🚨🚨 |
| Stock down 91% from ATH | 🚨🚨🚨 |
🏁 Final Thoughts
Brightcom Group Ltd is not a tech stock. It is a cautionary tale.
They reported ₹5,000+ Cr in revenue. They posted ₹700+ Cr in profit.
But when even the auditor says “we can’t confirm anything” — those numbers are meaningless.
This is the poster child of what happens when:
“Excel mastery beats ethics, and investors confuse momentum for management.”
You can dress up fake accounts in fancy EBITDA. But when SEBI knocks, the party ends.
🖋️ Article by: Prashant Marathe
📅 Date: 31 May 2025
🏷️ Tags: Brightcom Group, NSE BCG, SEBI scam stocks, audit qualification, digital marketing fraud, penny stock, Vuchi Media, financial irregularities, FY25 results
