Prima Industries publishes FY26 results in newspapers
Prima Industries Limited published its audited financial results for the year ended March 31, 2026, in newspapers on May 30, 2026. The company returned to profitability with a net profit of ₹42.47 crore, driven by exceptional items of ₹41.69 crore related to an NCLT-approved preference share transaction, while revenue from operations dipped to ₹71.53 crore.
*this image is generated using AI for illustrative purposes only.
Prima Industries Limited published the extract of its audited financial results for the quarter and financial year ended March 31, 2026, in newspapers on May 30, 2026. The company reported a return to profitability with a net profit of ₹42.47 crore, compared to a net loss of ₹2.97 crore in the previous year. This turnaround was primarily driven by exceptional items totaling ₹41.69 crore arising from an NCLT-approved transaction regarding preference shares. Revenue from operations for the year declined to ₹71.53 crore from ₹75.48 crore in FY25.
The results were published in the Financial Express (English edition) and Janayugom (Malayalam edition) on May 30, 2026, pursuant to Regulations 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory audit report was issued by M/s. G. Joseph & Associates, Chartered Accountants, with an unmodified opinion.
Financial Performance
For the quarter ended March 31, 2026, the company reported a net profit of ₹39.56 crore, a substantial increase from ₹2.98 crore in the corresponding quarter of the previous year. This quarterly performance was bolstered by the same exceptional item of ₹41.69 crore. Total income for the quarter stood at ₹16.21 crore, down from ₹27.68 crore in the year-ago period.
| Metric (₹ in Millions) | Year Ended Mar 31, 2026 | Year Ended Mar 31, 2025 |
|---|---|---|
| Revenue from Operations | 71.53 | 75.48 |
| Total Income | 74.42 | 84.23 |
| Total Expenses | 73.42 | 83.36 |
| Profit Before Tax | 42.69 | 0.87 |
| Net Profit | 42.47 | -2.97 |
| Exceptional Items | 41.69 | 0.00 |
Key Disclosures and Auditor Observations
The statutory auditors highlighted two key matters in their report. First, the company filed a petition with the NCLT regarding 51,97,403 preference shares of ₹10 each, whose original tenure expired on July 24, 2022. The NCLT passed an order on January 21, 2026, approving the issuance of new redeemable preference shares for a 20-year period from July 24, 2022, to July 23, 2042. The face value of these shares and the fair value of the liability were recognized as an exceptional item.
Second, the auditors noted a non-compliance with Section 185 of the Companies Act, 2013, involving an unsecured interest-free loan to associate companies amounting to ₹2,89,97,633, which remains outstanding and unrecovered. Despite these observations, the auditors stated that their opinion was not modified.
Historical Stock Returns for Prima Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.94% | -3.58% | +13.09% | -18.90% | +10.83% | -3.58% |
How does Prima Industries plan to address the outstanding ₹2.89 crore loan to associate companies given the auditor's non-compliance observation?
What is the company's strategy to reverse the decline in revenue from operations given the drop from ₹75.48 crore to ₹71.53 crore?
Will the 20-year tenure for the newly issued preference shares impact the company's future cash flow and dividend distribution capabilities?
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