Shristi Infrastructure Development Corporation Limited has released its unaudited financial results for the quarter ended June 30, 2026. The results, approved by the Board of Directors, were accompanied by a Limited Review Report from R Kothari & Co LLP, which includes qualified conclusions. Key qualifications relate to the non-provision of interest expense and uncertainties surrounding the realisability of investments in subsidiaries undergoing insolvency proceedings.
Shristi Infrastructure Announces Q1 FY27 Financial Results
Shristi Infrastructure Development Corporation Limited has announced its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The Board of Directors approved these results at a meeting held on August 12, 2026.
Auditor’s Qualified Review
The accompanying Limited Review Report by R Kothari & Co LLP highlights several areas of concern, leading to a ‘Qualified Conclusion’. A significant qualification pertains to the non-provision and default of interest expense amounting to ₹641.30 lakhs on borrowings from Srei Equipment Finance Limited. The auditor states this is not in accordance with Ind AS 23 and Ind AS 109, resulting in an understatement of finance costs and consequential impact on other reported financials.
Furthermore, the auditor expressed an inability to comment on the realisability of investments and loans in subsidiaries Sarga Udaipur Hotels & Resorts Private Limited and Shristi Urban Infrastructure Development Limited due to their respective insolvency proceedings (CIRP). This uncertainty impacts the assessment of investments valued at ₹195.00 lakhs and loans totalling ₹1,865.79 lakhs for Sarga Udaipur, and investments of ₹300.00 lakh and loans of ₹735.36 lakh for Shristi Urban Infrastructure.
The report also draws attention to a Material Uncertainty Related to Going Concern, noting that the company has incurred losses for the quarter and more than three consecutive years, with its net worth fully eroded as of June 30, 2026. While the management is confident of generating operational profits, this situation indicates a material uncertainty about the company’s ability to continue as a going concern.
Key Financials Snapshot
For the quarter ended June 30, 2026, the standalone total income was ₹814.84 lakhs, with a net loss after tax of (₹1,318.67) lakhs. The consolidated total income was also ₹814.84 lakhs, with a net loss after tax of (₹1,460.86) lakhs.
The financial statements also reflect various other disclosures, including an arbitration dispute with Rishima SA Investments LLC, a matter concerning the Airport Authority of India’s directions on tower heights, and an arbitral award involving IPHCL and M/s Scorpio.
Source: BSE
