HMT Limited reported a standalone net loss of ₹16.75 crore for the financial year ended March 31, 2026 (FY26), compared to a net loss of ₹16.10 crore in FY25. While the standalone position showed a marginal contraction in losses, the group’s consolidated net loss widened to ₹131.54 crore from ₹143.06 crore in the previous year. The divergence highlights significant operational challenges within subsidiaries, particularly HMT Machine Tools Limited. Investors face uncertainty as statutory auditors GRSM & Associates issued a qualified opinion on the financial statements, citing material gaps in inventory valuation, physical verification of assets, and reconciliation of Goods and Services Tax (GST) input tax credits.

The Board of Directors approved the audited standalone and consolidated financial results on July 27, 2026. Due to a lack of quorum at the Board Level Audit Committee, the results were placed directly before the Board. The statutory auditors qualified their opinion under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Key audit qualifications included the inability to verify inventory values at the Food Processing Machinery Unit in Aurangabad and the Auxiliary Business Company in Bengaluru. Additionally, the auditors noted that the group has not applied the Expected Credit Loss (ECL) model required under Ind AS 109 and failed to obtain external confirmations for trade receivables and payables.

Financial Performance Overview

Standalone revenue from operations stood at ₹25.96 crore for FY26, marginally down from ₹26.17 crore in FY25. Other income contributed ₹57.91 crore, bringing total income to ₹83.87 crore. Total expenses were ₹65.49 crore, driven by cost of materials consumed at ₹7.48 crore and other expenses at ₹48.00 crore. The company reported a profit before tax from continuing operations of ₹18.38 crore, but after accounting for tax expenses and discontinued operations, the net loss settled at ₹16.75 crore. Earnings per share (basic) for continuing operations were ₹0.47, compared to ₹0.45 in the prior year.

On a consolidated basis, total income was ₹201.10 crore against total expenses of ₹330.04 crore. The consolidated net loss attributable to equity holders was ₹131.54 crore. Segment-wise, the Projects segment generated ₹70.55 crore in revenue, while Machine Tools contributed ₹8.92 crore. The Food Processing Machinery segment recorded revenue of ₹8.92 crore. The consolidated balance sheet shows total assets of ₹535.63 crore and total liabilities of ₹256.23 crore, with a negative net worth of ₹202.67 crore.

What the Numbers Show

The financial data reveals a stark contrast between the parent company’s modest operational scale and the heavy drag from its subsidiaries. While HMT Limited’s standalone operations generated a small profit before tax (₹18.38 crore), the consolidated result reflects massive losses primarily driven by HMT Machine Tools Limited. The subsidiary’s units faced multiple audit qualifications, including delays in remitting statutory dues, non-compliance with the Micro, Small and Medium Enterprises Development Act, 2006, and unrecorded liabilities for electricity bills and liquidated damages. For instance, the Kalamassery unit had an unprovided electricity liability of ₹32.73 lakh and failed to account for ₹87.02 lakh in liquidated damages payable to customers. These structural issues suggest that the group’s turnaround depends heavily on resolving legacy compliance and working capital constraints within its machine tools division.

Corporate Developments and Disclosures

During FY26, HMT Limited de-recognised its investment in subsidiary HMT Watches Ltd, which was struck off by the Registrar of Companies on March 2, 2026, following CCEA approval in 2015-16. The company also disclosed that it has not obtained fair value valuations for investment properties from qualified valuers, relying instead on guidance values. Furthermore, the group is awaiting government approvals for the liquidation of Gujarat State Machine Tools Corporation Ltd and the divestment of stake in Nigeria Machine Tools Limited. The management stated that reconciliations for GST input tax credits will be completed before filing annual returns, and provisions will be made based on final assessments.

HMT Ltd has been fined ₹1,71,100 each by BSE Limited and National Stock Exchange of India Limited (NSE) for failing to submit financial results on time. The penalties were imposed for non-compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the quarter and year ended March 31, 2026. The fine amount is inclusive of GST and will increase daily until compliance is achieved.

The company attributed the delay to the complexity of consolidating accounts and auditing various units located across India. HMT Ltd stated that its subsidiaries operate units throughout the country, and the audit process is at an advanced stage of completion. Consequently, the company was unable to submit the audited financial results, both standalone and consolidated, for the period ended March 31, 2026, by the deadline of May 30, 2026.

In response to the notices, HMT Ltd indicated that it is working to submit the financial results at the earliest. The company further informed the exchanges that, in accordance with the provisions of the SOP Circular issued by the stock exchanges, it is in the process of applying for a waiver of the imposed fines. This waiver application will be pursued once the company achieves compliance with the regulations.

Details of the Regulatory Notice

The disclosure was made under Regulation 30 of the SEBI (LODR) Regulations, 2015. The table below summarizes the key details of the penalty:

The notices were received by the company on July 01, 2026. The filing was signed by Kishor Kumar S, AGM (Company Secretary), on behalf of HMT Ltd.