Outcome of Board Meeting held on February 07, 2025 for Q3 result.
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Gravity (India) Limited reported a sharp turnaround in Q3 FY26, with revenue from operations jumping to Rs 5,950.97 lakh from just Rs 0.16 lakh in Q3 FY25. For the nine months ended December 31, 2025, revenue rose to Rs 8,025.93 lakh versus Rs 122.12 lakh a year earlier. Profit after tax for the quarter stood at Rs 450.46 lakh (vs Rs 33.29 lakh) and Rs 601.97 lakh for nine months, compared with a loss of Rs 170.90 lakh in the prior-year period. EPS for the quarter improved to Rs 5.00 from Rs 0.37, and the company moved to positive reserves territory. However, the statutory auditor (AVKAS & Co) issued a Qualified Conclusion, flagging non-provision of gratuity liability under Ind AS 19, non-recognition of right-of-use assets and lease liabilities under Ind AS 116, non-deposit of TDS, and inability to verify fixed asset existence and valuation.
The dramatic revenue and profit growth is a positive signal, but the auditor's qualifications around accounting standards, TDS compliance, and asset verification raise serious governance concerns. Shareholders should weigh the strong operational numbers against these red flags, which could draw regulatory scrutiny and undermine the reliability of reported earnings.