Priya Ltd Q4FY26 Results: Net profit turns positive on notional gain
- Net profit turned positive to ₹434.50 lakh in FY26, reversing a ₹391.71 lakh loss in FY25
- Turnaround driven by ₹803.39 lakh notional gain from bank auctions of office premises
- Operational revenue remained at nil; finance costs stood at ₹357.07 lakh
- Total equity is negative at (₹4,463.55 lakh); liabilities exceed assets
- Statutory auditors issued an adverse opinion citing inability to verify NPA interest
*this image is generated using AI for illustrative purposes only.
Priya Limited reported a net profit of ₹434.50 lakh for the fiscal year ended March 31, 2026, reversing a net loss of ₹391.71 lakh in the previous year. The turnaround was driven entirely by non-operational items, as the company generated zero revenue from operations during the period.
The primary driver of the profit was a notional gain of ₹803.39 lakh recognized under exceptional items. This figure represents the accounting adjustment arising from the auction of the company's office premises by lending banks following the classification of its accounts as Non-Performing Assets (NPA). The company has been declared a wilful defaulter by Bank of Maharashtra, Indian Bank, and Union Bank of India.
Financial Performance
Despite the reported bottom-line profit, Priya Limited continues to face severe operational constraints. Revenue from operations remained at nil for both FY26 and FY25. The company incurred an operational loss before exceptional items, with total expenses standing at ₹368.99 lakh against other income of just ₹0.10 lakh.
| Metric | FY26 | FY25 |
|---|---|---|
| Revenue from Operations | ₹0.00 lakh | ₹0.00 lakh |
| Other Income | ₹0.10 lakh | ₹2.10 lakh |
| Total Expenses | ₹368.99 lakh | ₹393.81 lakh |
| Exceptional Items | ₹803.39 lakh | - |
| Net Profit / (Loss) | ₹434.50 lakh | (₹391.71 lakh) |
Finance costs accounted for ₹357.07 lakh of the total expenses, largely comprising notional interest on NPA accounts. The cumulative outstanding interest payable on these accounts reached ₹2,763.82 lakh as of March 31, 2026.
Balance Sheet Signals
The company's balance sheet reflects a negative net worth, with total equity standing at (₹4,463.55 lakh). Total liabilities exceeded total assets by this amount. Borrowings decreased to ₹1,716.96 lakh from ₹2,609.26 lakh in the previous year, primarily due to the adjustment of outstanding loans against the value of auctioned properties.
Investment property, which stood at ₹107.51 lakh in FY25, was fully derecognized in FY26 following the bank-led auctions of premises in Mumbai, Kolkata, and Chennai. The company has deposited ₹175 lakh in a "non-lien account" with Indian Bank towards a proposed one-time settlement of outstanding dues amounting to approximately ₹22.81 crore.
What the Numbers Show
The reported net profit is entirely illusory regarding operational health. The ₹434.50 lakh profit is derived solely from the ₹803.39 lakh exceptional item. Without this notional accounting entry, the company would have reported a significant operational loss. Furthermore, the company has not provided tax provisions on this gain, citing judicial precedents that capital gains tax may not apply when assets are appropriated for security discharge without cash receipt by the owner. This creates uncertainty around the final impact on net worth.
Corporate Governance and Audit
The statutory auditors, JM & Associates, issued an adverse opinion on the financial statements. Key concerns included the inability to verify interest provisions due to blocked bank accounts and lack of confirmations from lenders. The secretarial audit highlighted multiple compliance lapses, including delayed filing of listing fees, non-functional website, and failure to fill the Chief Financial Officer vacancy since November 2022.
The 39th Annual General Meeting is scheduled for September 30, 2026. The board recommended no dividend for FY26.
Historical Stock Returns for Priya
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.96% | -10.36% | -7.20% | -3.52% | -24.39% | +197.89% |
Will the proposed one-time settlement of ₹22.81 crore be approved by the lending banks, and how will it impact Priya Limited's remaining debt burden?
How might the adverse audit opinion and governance lapses affect the company's ability to remain listed on stock exchanges or attract new investors?
What is the likelihood of tax authorities challenging the company's decision to bypass capital gains tax on the auctioned assets, potentially reversing the reported profit?
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