Contil India FY26 net profit declines to ₹22.86 crore
Contil India reported a decline in net profit to ₹22.86 crore for FY26, despite a marginal increase in total revenue to ₹33.41 crore. The statutory auditors issued a qualified opinion due to the absence of actuarial valuations for employee benefits and incomplete transfer pricing documentation.

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Contil India Ltd reported a net profit of ₹22.86 crore for the financial year ended March 31, 2026, a decline from ₹25.29 crore in the previous year. Total revenue for FY26 stood at ₹33.41 crore, compared to ₹33.28 crore in FY25, while total expenses increased to ₹30.39 crore from ₹29.93 crore. The Board of Directors approved the audited standalone financial results at its meeting held on May 28, 2026.
For the quarter ended March 31, 2026, the company reported a net profit of ₹4.50 crore, a slight increase from ₹4.39 crore in the corresponding period of the previous year. Quarterly revenue rose to ₹7.66 crore from ₹7.17 crore in Q4FY25. Basic earnings per share for the year were recorded at ₹1.48, down from ₹1.63 in the prior year.
Financial Performance
The company's financial statements for FY26 reflect a mixed performance with growth in quarterly revenue but a contraction in annual profitability. The table below summarizes the key financial metrics for the quarter and year ended March 31, 2026.
| Metric | Quarter Ended 31-03-2026 (₹ in '000) | Year Ended 31-03-2026 (₹ in '000) | Year Ended 31-03-2025 (₹ in '000) |
|---|---|---|---|
| Revenue From Operations | 71605.31 | 316261.89 | 325706.89 |
| Total Revenue | 76596.72 | 334144.71 | 332770.67 |
| Total Expenses | 71130.66 | 303868.24 | 299315.70 |
| Net Profit for the period | 4500.98 | 22860.68 | 25289.74 |
| Basic EPS (₹) | 0.29 | 1.48 | 1.63 |
Auditor's Qualified Opinion
P. Indrajit & Associates, the statutory auditors, issued a qualified opinion on the standalone Ind-AS financial statements. The qualification arises primarily because the company did not conduct an actuarial valuation of its defined benefit obligations for gratuity and leave encashment as required by Ind AS-19. Consequently, employee benefit liabilities, deferred tax assets or liabilities, and related expenses remain unstated, making the financial impact of this non-compliance indeterminable.
Additionally, the auditors noted an investment in Contil Canada Limited carried at a cost of ₹36.73 lakh, where the absence of relevant documents prevented the assessment of potential impairment or valuation adjustments. The auditors also highlighted that the company entered into material international transactions with associate entities but had not yet completed the necessary transfer pricing documentation, precluding a comment on the adequacy of related disclosures.
Management Response
In its response to the audit qualifications, the management stated that the company has fewer than 10 employees and therefore the lack of actuarial valuation has no material impact, noting that a 'Click 2 retire' policy has been taken from HDFC. Regarding the investment in Contil Canada, the management asserted it is an Overseas Direct Investment approved by the RBI since 2007 and is carried at cost, with no material impact perceived. The company also confirmed that international transactions were conducted at arm's length prices and that necessary transfer pricing compliances would be completed by the due date.
Historical Stock Returns for Contil
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.89% | -0.42% | -12.05% | -14.26% | -27.18% | +1,080.90% |
What are the potential financial penalties or restatement risks if Contil India fails to complete the required actuarial valuation and transfer pricing documentation by the regulatory deadlines?
How will the lack of actuarial data on employee benefit obligations impact the company's ability to accurately forecast future liabilities and deferred tax assets?
What steps is management taking to gather the missing documents for Contil Canada Limited to assess potential impairment risks?





























