Texmaco Rail & Engineering Limited has informed the Exchange about Re-appointment of Internal Auditor & Cost Auditor for FY 2026-27.
TEXRAIL · price
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Texmaco Rail reported standalone net profit of Rs. 187 crore for FY2026, up 8.6% from Rs. 172 crore last year, on revenue of Rs. 4,371 crore. However, consolidated net profit fell 22% to Rs. 194 crore due to lower JV contributions. The statutory auditors issued a qualified opinion for the first time because the company created a Rs. 700 crore general contingency provision by directly charging free reserves instead of routing it through the profit and loss account, citing geopolitical and trade uncertainty risks. Net worth after this provision stands at Rs. 2,330 crore. The Board also recommended a 75% dividend (Rs. 0.75 per share), approved up to Rs. 200 crore investment in defence business through its subsidiary, and reappointed Deloitte as internal auditor for FY2026-27.
The qualified audit opinion is a red flag for investors as it indicates the auditors disagree with the accounting treatment of the Rs. 700 crore contingency provision. This raises questions about transparency and could negatively impact investor sentiment, though the underlying operational performance shows steady growth on a standalone basis.