Other Auditors: Reviewed the results of one subsidiary and the associates/joint ventures, upon which Walker Chandiok & Co LLP placed reliance.
Material Events and Updates
Initial Public Offering (IPO) and Listing
The company completed its Initial Public Offering (IPO) of 47,839,255 equity shares (face value ₹2 each) at an issue price of ₹148 per share.
The offer comprised an offer for sale of 26,217,634 equity shares by selling shareholders and a fresh issue of 21,621,621 equity shares.
The equity shares were listed on the National Stock Exchange of India (NSE) and BSE Limited on September 29, 2026.
Consequently, these are the first quarterly results after the listing. The figures for the quarters ended March 31, 2026, and June 30, 2025, were not subjected to a limited review by the statutory auditors, though management asserts diligence was exercised.
Change in Accounting Policy - Depreciation
Effective April 1, 2026, the company changed its method of depreciation from the diminishing balance method to the straight-line method.
The change was applied prospectively per Ind AS 8.
Had the previous method been continued for the quarter, the depreciation charge would have been higher by ₹104.59 million, and the net profit would have been lower by ₹78.27 million (standalone).
On a consolidated basis, the impact would have been a ₹112.40 million higher depreciation charge and an ₹84.70 million lower net profit.
Retirement from Subsidiary (Simola Tiles LLP)
Subsequent to the quarter end, on account of strategic and business considerations, the company retired as a partner of Simola Tiles LLP.
This action was pursuant to a Memorandum of Understanding dated September 5, 2026 (the "Effective Date").
New partners, Chaturbhai Karamashibhai Detroja (30%) and Kiritkumar Karamshibhai Detroja (29%), were admitted.
Consequently, with effect from the Effective Date, the company no longer has any partnership interest in Simola Tiles LLP, and it has ceased to be a subsidiary.
Impact of New Labour Codes
The company provided an additional ₹7.24 million (standalone) / ₹7.74 million (consolidated) towards gratuity, disclosed under 'Exceptional items' for the year ended March 31, 2026.
This provision was made due to the implementation of the four New Labour Codes effective November 21, 2025, based on guidance from ICAI and an actuarial valuation.
Auditor's Review
Walker Chandiok & Co LLP conducted a limited review of the standalone and consolidated financial results for the quarter ended June 30, 2026, in accordance with SRE 2410.
For the consolidated results, the auditors relied on the review reports of other auditors for one subsidiary and the associates/joint ventures.
The auditors concluded that nothing has come to their attention to believe that the statements contain any material misstatement.
The review is substantially less in scope than an audit and does not provide assurance that all significant matters an audit might identify would be found.
