VIRINCHIBSEVirinchi LtdHighNeutral
Announced Thu, 28 May · 21:37 IST

Please find enclosed the Audited Financial Results for the Qtr and year ended on 31st March 2026

Emphasis Of MatterPat NegativeRevenue DeclineNegative Operating CashflowContingent Liabilities IncreasedGoing ConcernResults View source PDF

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AI summary

Virinchi Ltd reported a standalone revenue of Rs 13,133.14 lakh for FY2025-26, up ~9.9% from Rs 11,947.56 lakh prior year, while consolidated revenue declined sharply to Rs 24,436.44 lakh from Rs 30,113.03 lakh. Standalone PBT was flat at Rs 2,010.46 lakh vs Rs 2,004.90 lakh, but consolidated PBT turned deeply negative at Rs 12,293.44 lakh (vs positive Rs 237.04 lakh), driven by significant losses in subsidiaries including a Rs 274.16 lakh loss in Virinchi Capital. Standalone EPS was Rs -3.03. Operating cash flow remained negative at Rs 4,911.61 lakh (standalone FY2025). The auditors issued an unmodified opinion but included an Emphasis of Matter flagging non-regular deposit of statutory dues: PF Rs 1,024.81 lakh, ESI Rs 47.88 lakh, Professional Tax Rs 31.29 lakh, TDS Rs 1,292.73 lakh, and Self-Assessment Tax Rs 343.50 lakh — all overdue as of March 31, 2026. Disputed income tax demands of Rs 297.86 lakh (AY 2017-18) and Rs 767.86 lakh (AY 2022-23) are pending at CIT(A)/ITAT. The company allotted 61.5 lakh equity shares upon warrant conversion during Q4.

Likely market impact

The company is facing severe consolidated losses and persistent statutory non-compliance, raising going-concern risks. Negative operating cash flows and mounting tax disputes add further pressure. The auditor's unmodified opinion is tempered by an emphasis of matter on unpaid dues, signalling regulatory risk.