Madhav Marble Q1 Results: Standalone profit falls 30% YoY to ₹11.27 lakh
Madhav Marble & Granites Ltd reported a standalone net profit of ₹11.27 lakh for Q1FY27, down 30% YoY, while the consolidated group posted a loss of ₹79.52 lakh. Revenue remained flat at ₹770.77 lakh (standalone). Auditors issued a qualified opinion due to unassessed impairments on loans to subsidiaries with eroded net worth. The board re-appointed key directors and modified related-party transaction limits.
*this image is generated using AI for illustrative purposes only.
Madhav Marble & Granites Limited reported a standalone net profit of ₹11.27 lakh for the first quarter of FY27 (ended June 30, 2026), down from ₹16.13 lakh in the same period last year. The consolidated group, however, recorded a net loss of ₹79.52 lakh, compared to a consolidated loss of ₹17.66 lakh in Q1FY26.
The board approved the unaudited financial results on August 13, 2026. While the standalone entity remained profitable, the consolidated bottom line was significantly impacted by a share of loss from associates and joint ventures amounting to ₹44.36 lakh, alongside higher consolidated finance costs of ₹27.22 lakh against ₹35.41 lakh in the prior year.
Financial Performance
Standalone revenue from operations stood at ₹770.77 lakh, slightly lower than the ₹792.16 lakh reported in Q1FY25. Other income contributed ₹87.17 lakh to the total income, comprising interest income of ₹62.67 lakh and net foreign currency gains of ₹22.70 lakh. This contrasts sharply with Q4FY26, where other income included a one-time profit of ₹313.49 lakh from the sale of a windmill.
Consolidated revenue from operations was ₹790.90 lakh, marginally below the ₹802.60 lakh recorded in the corresponding quarter of the previous fiscal year. Total expenses for the consolidated group rose to ₹876.20 lakh from ₹891.96 lakh in Q1FY25, but the impact of associate losses widened the deficit.
| Metric | Q1FY27 Standalone | Q1FY26 Standalone | Change |
|---|---|---|---|
| Revenue from Operations | ₹770.77 lakh | ₹792.16 lakh | -2.7% |
| Net Profit | ₹11.27 lakh | ₹16.13 lakh | -30.1% |
| EPS (Basic) | ₹0.13 | ₹0.18 | -27.8% |
| Metric | Q1FY27 Consolidated | Q1FY26 Consolidated | Change |
|---|---|---|---|
| Revenue from Operations | ₹790.90 lakh | ₹802.60 lakh | -1.5% |
| Net Loss | ₹79.52 lakh | ₹17.66 lakh | Wider Loss |
| EPS (Basic) | -₹0.89 | -₹0.20 | Deterioration |
Auditor’s Qualified Opinion
Independent auditors Nyati & Associates issued a qualified opinion on both the standalone and consolidated financial statements. The qualification stems from the company’s failure to perform an impairment assessment under Ind AS 36 for investments and loans extended to subsidiaries and associates whose net worth has been fully eroded.
Specific concerns raised by the auditors include:
- Madhav Ashok Ventures Private Limited (MAVPL): The company holds an investment of ₹300 lakh and outstanding loans of ₹241.78 lakh. MAVPL’s net worth is fully eroded.
- Madhav Natural Stone Surfaces Private Limited (MNSSPL): Investments stand at ₹86 lakh with loans of ₹60.24 lakh outstanding. Its net worth is also fully eroded.
- Madhav Surface LLC (Associate): The company has an investment book value of ₹33.63 lakh and loans of ₹9.76 lakh. The associate’s net worth is fully eroded due to continued losses.
The auditors stated they could not determine if adjustments were necessary to the carrying value of these assets, noting that such provisions could materially affect the profit or loss.
Board Approvals and Governance
Alongside the financial results, the board approved several governance-related matters subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for September 30, 2026:
- Re-appointments: CEO and Managing Director Madhav Doshi and Whole Time Director Riddhima Doshi were re-appointed for three-year terms starting May 2027 and February 2027, respectively. Independent Directors Devendra Manchanda, P Y Venkataraman, and Arumugam Sivadasan were also re-appointed.
- Related Party Transactions: The aggregate limit for material related-party transactions with subsidiary Madhav Surfaces FZC LLC was increased from ₹40 crore to ₹55 crore. Limits for MAVPL and MNSSPL were reduced to ₹45 crore and ₹8 crore, respectively.
- Promoter Loans: The board sought approval to accept an unsecured loan of up to ₹6 crore from promoters Madhav Doshi and Riddhima Doshi.
- Internal Audit: M/s TM and Associates was appointed as internal auditors for FY27.
What the Numbers Show
The divergence between standalone profitability and consolidated losses highlights the drag from associated entities. While the core granite and stone division reported a segment loss of ₹9.71 lakh (standalone), the power generation unit contributed a profit of ₹39.33 lakh. However, the consolidated view reveals that the share of loss from associates (₹44.36 lakh) more than offset the operational profits, turning the group result negative. This structural dependency on external entities, combined with the auditor’s warning about unimpaired loans to fully eroded subsidiaries, signals potential future provisioning risks that are not yet reflected in the current P&L.
Historical Stock Returns for Madhav Marble & Granites
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.35% | 0.0% | +1.53% | -10.89% | -16.27% | -41.62% |
How might the auditor's qualified opinion regarding unimpaired loans to fully eroded subsidiaries impact Madhav Marble's future provisioning requirements and net worth?
What specific strategic actions is management planning to take to reverse the financial deterioration of associates MAVPL and MNSSPL, or will they consider divesting these stakes?
Given the reliance on promoter loans for liquidity, how could this increased debt exposure affect the company's credit rating and future borrowing costs?
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