RJ Shah & Co FY26 Results: Net profit falls 58% as revenue collapses
- Net profit fell 58% YoY to ₹240.73 lakh for FY26
- Operating revenue collapsed 97% to ₹27.10 lakh
- Other income rose 28% to ₹229.83 lakh, driving total income
- Board recommends ₹2.50 per share final dividend
- Company discloses no ongoing core business activity
*this image is generated using AI for illustrative purposes only.
RJ Shah & Company reported a 58% year-on-year decline in net profit to ₹240.73 lakh for the financial year ended March 31, 2026, driven by a near-total collapse in core operating revenue.
The Mumbai-based engineering and construction firm declared a final dividend of ₹2.50 per equity share, maintaining its payout despite the sharp contraction in business activity.
Financial Performance
Revenue from operations plummeted 97% to ₹27.10 lakh from ₹1,046.02 lakh in FY25. This drastic drop reflects the company's disclosure that it has not carried on any significant activity for the last few years and does not foresee continuing the same in the future.
Despite the operational downturn, total income stood at ₹256.94 lakh, supported by a 28% rise in other income to ₹229.83 lakh from ₹179.03 lakh in the previous year. Other income is primarily derived from interest on fixed deposits and bonds.
| Metric | FY26 (₹ Lakh) | FY25 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 27.10 | 1,046.02 | -97.4% |
| Other Income | 229.83 | 179.03 | +28.4% |
| Total Income | 256.94 | 1,225.05 | -79.0% |
| Net Profit | 240.73 | 575.43 | -58.2% |
Profit before tax fell to ₹323.65 lakh from ₹770.86 lakh. Tax expenses were recorded at ₹82.92 lakh, down from ₹195.43 lakh in FY25.
What the Numbers Show
The financial results reveal a fundamental shift in the company's earnings profile. While operating revenue effectively ceased, other income constituted approximately 89% of total income in FY26, compared to 15% in FY25. This divergence indicates that the company's current profitability is sustained almost entirely by investment returns rather than its core engineering and construction business.
Balance Sheet and Cash Flow
Total assets increased marginally to ₹4,590.52 lakh from ₹4,475.67 lakh. Non-current assets rose significantly to ₹4,105.72 lakh, driven by an increase in other financial assets—primarily bank deposits with maturity over 12 months—to ₹3,947.09 lakh from ₹3,187.61 lakh.
Cash and cash equivalents grew to ₹55.66 lakh from ₹14.18 lakh. However, net cash generated from operating activities was negative at ₹(133.82 lakh), reflecting the lack of core business cash inflows. Investing activities provided positive cash flow of ₹195.59 lakh, largely due to interest received.
Corporate Governance and Dividend
The Board of Directors recommended a dividend of ₹2.50 per equity share of face value ₹10 each. The dividend outgo is estimated at approximately ₹7.00 lakh. Shareholders on record as of September 11, 2026, will be eligible for the payout.
Mr. Sunil Masand retires by rotation at the upcoming Annual General Meeting on September 22, 2026, and offers himself for re-appointment. The meeting will be held via video conferencing.
The company continues to face several arbitration matters regarding past projects, including the Wan Hydro Electric Project and MRVC Tunnel No. 1, which are listed as contingent assets.
Historical Stock Returns for RJ Shah & Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | -6.17% |
Given the cessation of core operations, will RJ Shah & Company pursue a strategic pivot into new business verticals or consider a complete delisting and liquidation of assets?
How might the ongoing arbitration matters regarding the Wan Hydro Electric Project and MRVC Tunnel No. 1 impact the company's future cash flows and contingent asset valuations?
With profitability now driven almost entirely by investment income, what is the management's strategy for deploying the significant non-current financial assets to generate sustainable returns?
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