Rainbow Foundations FY26 net profit falls to ₹711.67 lakh
Rainbow Foundations Limited reported a net profit of ₹711.67 lakh for FY26, a decrease from the previous year, while revenue rose to ₹16,675.19 lakh. The company published the audited financial results in newspapers on June 01, 2026, following board approval on May 30, 2026.

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Rainbow Foundations Limited reported a net profit of ₹711.67 lakh for the financial year ended March 31, 2026, a decline from ₹801.16 lakh in the previous year. Revenue from operations for the year increased to ₹16,675.19 lakh from ₹15,612.51 lakh in FY25. The company published an extract of these audited financial results in the newspapers Makkal Kural and Trinity Mirror on June 01, 2026, pursuant to Regulations 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The board of directors approved the audited standalone and consolidated financial results at its meeting held on May 30, 2026. For the quarter ended March 31, 2026, the company recorded a profit after tax of ₹391.25 lakh. Total revenue for the quarter stood at ₹4,325.92 lakh.
Financial Performance
The table below summarizes the key financial metrics for the year ended March 31, 2026:
| Particulars | Year Ended 31-Mar-2026 (₹ in Lakhs) | Previous Year 31-Mar-2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from operations | 16,675.19 | 15,612.51 |
| Total Expenses | 15,678.58 | 14,603.88 |
| Profit before tax | 1,018.04 | 1,103.26 |
| Net Profit | 711.67 | 801.16 |
| Basic Earnings per share | 1.43 | 1.61 |
Segment Reporting
Rainbow Foundations operates in a single reportable segment, Real Estate / Construction. Consequently, segment-wise revenue, results, assets, and liabilities are not presented separately. Entity-wide disclosures indicate that all revenue of ₹16,675.19 lakh was derived from domestic (India) operations, with no revenue from overseas sources.
Exceptional Items
The company reported an exceptional item of ₹69.59 lakh for the year ended March 31, 2026. This amount relates to the incremental impact of new Labour Codes notified by the Government of India on November 21, 2025. The obligation has been recognized as a provision in the balance sheet based on the statutory formula under the Payment of Gratuity Act, 1972. The company is currently in the process of establishing an Approved Gratuity Trust Fund with LIC.
Historical Stock Returns for Rainbow Foundations
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.95% | -2.93% | -9.66% | -18.52% | -16.01% | +401.85% |
How will the establishment of the Approved Gratuity Trust Fund with LIC impact the company's cash flow and liquidity in the coming fiscal year?
What strategies will management implement to reverse the decline in net profit margins despite the increase in operational revenue?
Are there plans to diversify revenue streams beyond domestic operations to mitigate geographic concentration risks?































