Announced Fri, 29 May · 18:52 IST

Outcome of Board Meeting

Qualified OpinionRelated Party TransactionsNegative Operating CashflowContingent Liabilities IncreasedResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Kaarya Facilities and Services Ltd's Board approved the audited financial results for FY 2025-26 ending 31st March, 2026. The auditor issued a qualified opinion citing three issues: (1) non-provision of interest on outstanding GST liabilities of Rs. 758.28 lakhs (Rs. 425 lakhs disputed before Appellate Authority), (2) gratuity provision not made as per Accounting Standard 15, and (3) unreconciled trade receivables/payables balances. Revenue grew marginally by 2.1% to Rs. 3,888.94 lakhs, while profit after tax increased 17.4% to Rs. 201.65 lakhs. The company reported negative operating cash flow of Rs. 51.71 lakhs but improved from Rs. 94.46 lakhs negative last year. Basic EPS stood at Rs. 2.14. Related party transactions include loans to associate company Kaarya Next Solution Pvt Ltd.

Likely market impact

The qualified audit opinion raises concerns about financial reporting quality and potential under-provisioning of liabilities. Shareholders should note the outstanding GST disputes and related party loans. Despite PAT growth, the negative operating cash flow and audit qualifications suggest caution.