Innovision Limited has revised its accounting estimate for recognizing toll fees payable to NHAI. The company is moving from a straight-line basis to a method proportionate to estimated monthly vehicular traffic. This change, effective July 01, 2026, will prospectively adjust the timing of expense recognition and profit before tax, with a ₹23.76 Crores impact reported for the quarter and half-year ended September 30, 2026.
Innovision Limited Adjusts Accounting Estimate for Toll Fees
Innovision Limited announced today, November 13, 2026, that its Board of Directors has approved a change in accounting estimate concerning the recognition of fees payable to the National Highways Authority of India (NHAI). This revision aims to more accurately reflect the pattern of consumption of the right to collect toll under the company’s contracts.
Revised Recognition Method
Previously, Innovision recognized toll fees on a straight-line basis over the contract period. The revised method, effective from July 01, 2026, will recognize these fees in proportion to the estimated monthly vehicular traffic relative to the total estimated traffic over the contract period. This estimation is based on historical traffic data from the previous year, taking into account seasonal and periodic variations.
The company stated that this change aligns with IND AS 8, Accounting Policies, Changes in Accounting Estimates and Errors, and is considered more appropriate by management. The application is prospective, meaning comparative financial information for earlier periods has not been restated.
Financial Impact
For the quarter and half-year ended September 30, 2026, the change in estimate has resulted in a decrease in toll fee expense by ₹23.76 Crores, with a corresponding increase in profit before tax by the same amount. The total contractual fees payable to NHAI and the total contractual obligation of the Company remain unchanged.
The company also noted that it is impracticable to estimate the impact of this change on future periods beyond the current reporting period. The change primarily affects the timing of expense recognition, not the aggregate expense over the contract life.
Source: BSE
