Financial Results Summary
Standalone Performance (₹ lakhs):
- Q4 FY26: Revenue from operations ₹8,204.52, Net loss ₹(109.74)
- FY26 Annual: Revenue from operations ₹26,163.48, Net profit ₹12.72
- Earnings per share: Basic and diluted EPS of ₹0.00 for FY26 and ₹(0.01) for Q4 FY26
- Segment revenue: Infra & Energy ₹11,695.60 (FY26), Chemical, Polymers & Special Additives ₹14,467.89 (FY26)
Consolidated Performance (₹ lakhs):
- Q4 FY26: Revenue from operations ₹11,618.71, Net loss ₹(44.41)
- FY26 Annual: Revenue from operations ₹35,318.05, Net profit ₹313.70
- Earnings per share: Basic and diluted EPS of ₹0.02 for FY26 and ₹(0.00) for Q4 FY26
Audit Qualifications
The statutory auditor, KSMC & Associates, issued a qualified opinion with the following basis:
1. Delayed Statutory Dues: Company continued business and investment activities while substantial statutory dues remained outstanding. Insufficient evidence regarding business rationale for investments and inter-corporate deposits.
2. Related Party Transactions: Material related party transactions in nature of inter-corporate deposits, investments with promoter group entities and subsidiaries without requisite shareholder approvals as required under Regulation 23 of SEBI LODR and Section 188 of Companies Act, 2013.
3. Loan Recoverability: ₹18.50 crore loan outstanding as of March 31, 2026, with insufficient evidence regarding recoverability, including lack of external balance confirmation and borrower's audited financial statements.
4. BG Technocrats Investment: Memorandum of Understanding for ₹132.50 crore investment mutually cancelled in December 2025. Company received back ₹47.00 crore during year and recognized receivable of ₹85.50 crore. Post-balance sheet, received additional ₹42.97 crore, leaving balance receivable of ₹42.53 crore. Insufficient evidence regarding cancellation and recoverability.
5. Real Estate Project Advance: Memorandum of Understanding dated January 30, 2026 with Silverline Furnishing for real estate project development with commitment of ₹100.00 crore. Advanced ₹55.50 crore to developer as of March 31, 2026. Project commencement subject to statutory approvals. Insufficient evidence regarding commercial rationale, project status, and fund utilization.
Emphasis of Matters
1. Shamli Steels Share Swap Reversal: During previous year, company acquired 100% equity shares of Shamli Steels Private Limited through share swap arrangement by issuing 38,03,50,000 equity shares. Subsequently reversed through Termination cum Settlement Agreement dated January 29, 2025, extinguishing 38,03,50,000 equity shares. Approval from stock exchanges and NCLT for reduction of share capital pending as of report date.
2. Hallow Securities Settlement: Transactions included acquisition of debentures aggregating ₹13.00 crore and advances of ₹7.45 crore to Hallow Securities Private Limited. Settlement Agreement dated June 2, 2026 for aggregate outstanding dues of ₹20.45 crore. Received ₹8.45 crore up to approval date, with ₹12.00 crore remaining recoverable. Additional lump-sum compensation of ₹1.50 crore not recognized as enforceable right arose after reporting date.
3. Income Tax Demands: Received demand notices aggregating ₹17.71 crore (includes interest of ₹0.88 crore) from Income Tax Department for various assessment years. Company has filed appeals against assessment-related demands and is filing rectification applications for other demands. No provision recognized as management believes adequate grounds exist to contest demands.
4. Subsidiary Shareholding Dilution: Board of erstwhile wholly-owned subsidiary Vikas Organics Private Limited approved preferential allotment of 844,998 equity shares to identified investors. Company's shareholding diluted from 100.00% to 53.19%, ceasing wholly-owned subsidiary status. Subsidiary continues to be consolidated as company retains majority stake and control.
Capital Structure
- Paid-up equity share capital: ₹13,883.56 lakh (Face value ₹1 per share)
- Other equity: ₹25,171.48 lakh (Standalone), ₹25,612.57 lakh (Consolidated)
- Weighted average number of equity shares calculated after considering reduction in share capital from Shamli Steels transaction reversal
Cash Flow Highlights
Standalone (FY26):
- Net cash used in operating activities: ₹(11,151.81) lakh
- Net cash from investing activities: ₹9,562.51 lakh
- Net cash from financing activities: ₹1,555.05 lakh
- Net decrease in cash and cash equivalents: ₹(34.25) lakh
Consolidated (FY26):
- Net cash used in operating activities: ₹(11,323.70) lakh
- Net cash from investing activities: ₹9,598.41 lakh
- Net cash from financing activities: ₹1,681.13 lakh
- Net decrease in cash and cash equivalents: ₹(44.15) lakh
Additional Information
- Board meeting held on July 1, 2026 from 6:15 PM to 9:20 PM
- No investor complaints pending during the quarter