ELECTHERMBSEElectrotherm (India) LtdLowNeutral
Announced Thu, 21 May · 18:28 IST

Appointment of M/s. V. H. Savaliya & Associates, Cost Accountants as Cost Auditor of the Company for the Financial Year 2026-27

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Price reaction · full curve 14 horizons · vs prior close
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₹850.60
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AI summary

Electrotherm (India) Ltd's Board approved the appointment of M/s. V. H. Savaliya & Associates as Cost Auditor for FY 2026-27. Separately, the company reported audited standalone revenue of Rs 3,692.09 crore for FY26, down from Rs 4,115.37 crore in FY25, and a net loss of Rs 16.18 crore versus a net profit of Rs 428.60 crore in the prior year. The auditors issued a qualified opinion due to non-provision of interest on NPA loan accounts (unprovided interest totaling approximately Rs 1,066.12 crore). The company also faces ongoing loan defaults with Asset Reconstruction Companies and pending litigation before the DRT, CBI, and other authorities. One subsidiary (Hans Ispat) also has a revoked settlement and active DRT proceedings for Rs 122.28 crore.

Likely market impact

The cost auditor appointment is routine and carries no immediate shareholder impact. However, the qualified audit opinion, ongoing NPA provisions, loan defaults, and negative equity position (consolidated equity at Rs -153.88 crore) signal significant financial stress and governance risks that investors should monitor closely.