India Homes reported a standalone net profit of ₹344.16 lakh for the quarter ended June 30, 2026 (Q1FY27), reversing a net loss of ₹147.57 lakh in the corresponding period of FY26. The turnaround was driven by an exceptional item gain of ₹665.20 lakh arising from a debt settlement with J.C. Flowers Asset Reconstruction Private Limited, which offset operating losses. Despite the reported profit, statutory auditors Laxmikant Kabra & Co LLP issued a disclaimer of opinion, citing pervasive material weaknesses, inaccessible accounting records, and significant doubts about the company’s ability to continue as a going concern.

The Board of Directors approved the unaudited financial results and authorized an investment of up to ₹50 crore in Level Enterprises LLP, a related party holding a development agreement for land in Mumbai. The investment aims to secure at least a 51% stake in the LLP, subject to regulatory approvals. The Board also revised the notice for its 39th Annual General Meeting. The results were submitted pursuant to Regulation 30 and Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Revenue from operations remained nil for the quarter, consistent with the previous year. Total income stood at ₹23.30 lakh, derived entirely from other income related to steel activities. Total expenses increased to ₹344.34 lakh from ₹161.03 lakh in Q1FY26, driven by higher finance costs of ₹179.07 lakh and employee benefits of ₹75.99 lakh. Before exceptional items, the company incurred a loss of ₹321.04 lakh. Basic earnings per share (EPS) after exceptional items were ₹0.09, compared to a loss of ₹0.04 per share in Q1FY26.

Auditor’s Disclaimer and Material Weaknesses

Laxmikant Kabra & Co LLP stated they were unable to obtain sufficient appropriate audit evidence due to critical issues. The primary accounting software (SAP) and underlying records were inaccessible, forcing the company to prepare books using alternative software and backup records. Key concerns included:

• Inventory Valuation: Inventories worth ₹13,696.20 lakh were not valued at the lower of cost or net realizable value as required by Ind AS 2. Work-in-progress of ₹10,608.94 lakh and raw materials of ₹1,867.67 lakh appeared recoverable only at scrap value, lacking proper physical verification.
• Contingent Gain Recognition: The company recognized a ₹730.05 lakh gain from the J.C. Flowers settlement. However, auditors noted the payment deadline of July 31, 2026, had passed without payment, meaning conditions for recognizing the gain were not fulfilled. This potentially overstates profit by ₹730.05 lakh.
• Related Party Transactions: The company took over work-in-progress worth ₹1.67 crore from a director, recognized as current assets. Auditors found no independently verifiable evidence of tangible assets or future economic benefits.
• Going Concern: Current liabilities exceeded current assets, and operations have substantially ceased, raising significant doubt about the company’s ability to continue as a going concern.

Debt Defaults and Asset Status

The company disclosed outstanding defaults on loans and debt securities. As of June 30, 2026, the default amount on loans/revolving facilities was ₹2,507.42 lakh, and the default on unlisted debt securities (NCDs/NCRPS) was ₹6,418.58 lakh. Total financial indebtedness stood at ₹8,926.00 lakh. The factory premises remain in the possession of J.C. Flowers Asset Reconstruction Private Limited following the assignment of debt by Dombivli Nagari Sahakari Bank Limited. Freehold land has been reclassified as “Assets Held for Sale” under Ind AS 105, but its fair value less costs to sell has not been determined as negotiations are ongoing.

India Homes Ltd has received in-principle approval from BSE Limited for its proposed rights issue of partly paid-up equity shares. The company disclosed this development through an intimation filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, on July 23, 2026.

BSE Approval Details

The approval was communicated by BSE Limited vide letter bearing reference No. LOD/RIGHT/RB/FIP/546/2026-27, dated July 23, 2026, in response to the company's application dated May 01, 2026. The in-principle approval grants India Homes Ltd permission to use the Exchange's name in its Letter of Offer for the proposed rights issue of partly paid-up equity shares.

Conditions and Compliance Requirements

BSE Limited has stipulated several conditions that India Homes Ltd must adhere to in connection with the rights issue. The Exchange has clarified that its approval does not constitute an endorsement of the contents of the Letter of Offer, nor does it guarantee the listing or continued listing of the company's securities.

Key compliance requirements outlined by BSE Limited include:

• The company must include the prescribed disclaimer clause of the Exchange in its Letter of Offer and in all related advertisements.
• A record date must be fixed with at least three working days' advance notice to the Exchange, along with disclosure of the rights issue price at least three working days prior to the record date.
• The company must confirm completion of posting of the Letter of Offer and composite application form before dealings in Letters of Renunciation are permitted.
• Agreements with all depositories for dematerialisation of securities must be in place, with an option provided to investors to receive allotment in dematerialised form.
• The Basis of Allotment of rights securities must be approved by the Designated Stock Exchange, even in cases of under-subscription.
• A qualified Company Secretary must serve as the Compliance Officer, as per Regulation 6(1) of the SEBI (LODR) Regulations, 2015.
• The company must comply with applicable provisions of Section 186 and 188 of the Companies Act, 2013, and Regulation 23 of the SEBI (LODR) Regulations, 2015, prior to filing the listing application.
• A certificate confirming ODI compliance must be procured from the Secretarial Auditor on or before filing of the listing application.
• All applicable charges levied by the Exchange for usage of any system, software, or similar facilities must be paid by the company.

Exchange's Disclaimer Position

BSE Limited has explicitly stated that its in-principle approval should not be construed as clearance or endorsement of the Letter of Offer. The Exchange does not warrant the correctness or completeness of the offer document's contents, nor does it take responsibility for the financial or other soundness of the company, its promoters, its management, or any scheme or project. Investors are advised to conduct independent inquiry and analysis before applying for or acquiring any securities under the rights issue.

The in-principle approval for listing of the partly paid-up equity shares proposed to be issued on a rights basis remains subject to the company completing all post-issue requirements and complying with the necessary statutory, legal, and listing formalities.