AUDITED FINANCIAL RESULTS
MADHAV · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Madhav Marbles reported standalone PAT of Rs 238.81 lakh for FY26, up 218% from Rs 75.11 lakh in FY25, despite marginal revenue decline from Rs 3094.89 lakh to Rs 3046.24 lakh. However, consolidated PAT was much lower at Rs 38.92 lakh (vs loss of Rs 67.98 lakh in FY25), indicating subsidiary drag. The auditors issued a qualified opinion due to the company's failure to assess impairment on investments in three subsidiaries/associates (Madhav Ashok Ventures, Madhav Natural Stone Surfaces, and Madhav Surfaces LLC) whose net worth has been fully eroded. The company has Rs 6 crore in loans to Madhav Natural Stone Surfaces and Rs 23.80 crore to Madhav Ashok Ventures, both of which have been extended. The board also approved acquiring the remaining 40% stake in Madhav Ashok Ventures to make it a wholly-owned subsidiary and approved up to Rs 10 crore financial assistance to overseas associate Madhav Surfaces FZC LLC.
The qualified audit opinion raises red flags about potential hidden losses from unrecognized impairment provisions on subsidiary investments. The significant gap between standalone and consolidated profitability signals ongoing stress in subsidiary operations due to geopolitical disruptions affecting the overseas joint venture in Oman.