Re-appointment of Internal Auditor and Cost Auditor
TEXRAIL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Texmaco Rail held its Board Meeting on 12th May 2026 and approved multiple items. The company reported standalone revenue of Rs. 4,37,140 lakhs for FY26 (up from Rs. 4,23,398 lakhs) with standalone profit before tax of Rs. 27,103 lakhs (up from Rs. 25,863 lakhs). However, the statutory auditors (L.B. Jha & Co. LLP) issued a qualified opinion due to the company creating a Rs. 700 crore (Rs. 70,000 lakhs) contingency provision by charging free reserves instead of routing it through the P&L account. The Board recommended a dividend of Rs. 0.75 per share (75%) for FY26. The company also approved entry into defence business via its subsidiary Texmaco Defence Technologies Ltd. with planned investment up to Rs. 200 crores over 3-5 years, and a collaboration with Sigma Rail Systems for railway signalling and power electronics. Both Deloitte Touche Tohmatsu (Internal Auditor) and DGM & Associates (Cost Auditor) were re-appointed for FY27.
The qualified auditor opinion due to the non-standard Rs. 700 crore contingency provision is a governance concern as it masks true operational profitability. However, the dividend recommendation and new business initiatives may provide some support to the stock. Shareholders should monitor the contingency provision impact on future earnings.