Shristi Infrastructure Development Corporation Limited has incorporated a wholly owned subsidiary, Shristi Realty Holdings Limited, marking an expansion into dedicated real estate acquisition activities. The move allows the listed infrastructure developer to isolate and pursue new business ventures within the construction and real estate sectors through a specialized corporate structure. The incorporation was completed on July 30, 2026, with the parent company subscribing to 100% of the initial paid-up share capital in cash.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Krishna Kumar Pandey, Company Secretary and Compliance Officer of Shristi Infrastructure Development Corporation Limited, signed the intimation sent to BSE Limited and The Calcutta Stock Exchange Limited on July 30, 2026.

Subsidiary Details

Shristi Realty Holdings Limited is incorporated in India and operates in the Real Estate / Construction industry. Its primary objective is to acquire new business ventures, providing the parent company with a focused vehicle for growth opportunities in property development and related assets. No governmental or regulatory approvals were required for this incorporation.

Strategic Implications

The creation of a wholly owned subsidiary enables Shristi Infrastructure Development Corporation Limited to ring-fence its real estate acquisitions from its core infrastructure development operations. This structural separation can simplify future financing, partnership negotiations, or potential divestments related specifically to real estate assets. By subscribing at face value, the parent company maintains full control without immediate dilution or complex valuation adjustments for the initial setup phase.

Shristi Infrastructure Development Corporation Limited reported a consolidated net loss of ₹2,544.13 lakh for the financial year ended March 31, 2026, widening from the loss of ₹1,521.97 lakh in the previous year. Revenue from operations for the year stood at ₹6,976.23 lakh, down from ₹8,712.46 lakh in FY25. The statutory auditors, M/s. R Kothari & Co. LLP, issued a modified opinion on the financial results, highlighting significant non-provision of interest expenses and material uncertainty regarding the company's ability to continue as a going concern.

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at its meeting held on May 28, 2026. The approval was made pursuant to Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Audit Qualifications

M/s. R Kothari & Co. LLP issued a qualified opinion drawing attention to the non-provision and default of interest expense amounting to ₹634.25 lakh for the quarter and ₹2,572.24 lakh for the year on borrowings from Srei Equipment Finance Limited. The cumulative non-provisioning and default of interest till March 31, 2026, totals ₹12,462.58 lakh. The auditors stated that this non-compliance with Ind AS 23 and Ind AS 109 resulted in an understatement of finance costs. Had this interest been recognized, the net loss for the year would have been ₹5,116.37 lakh instead of the reported ₹2,544.13 lakh.

Additionally, the auditors noted they were unable to comment on the realisability of investments and loans receivable from subsidiary Sarga Udaipur Hotels & Resorts Private Limited, which is undergoing the Corporate Insolvency Resolution Process (CIRP) since April 29, 2022.

Going Concern and Legal Matters

The auditors highlighted a material uncertainty related to the company's status as a going concern. The company has incurred losses for more than three consecutive years and has a negative net worth of ₹15,518.66 lakh as on March 31, 2026. The management, however, expressed confidence in generating operational profits from the current financial year onwards and prepared the financial statements on a going concern basis.

The report also emphasized ongoing legal disputes, including an arbitration award of ₹76,100 lakh plus interest passed against the company in favour of Rishima SA Investments LLC. The company has filed objections to the enforcement of this award based on legal opinion and has not made any provision.

Financial Performance

The notice, signed by Krishna K Pandey, Company Secretary & Compliance Officer, was submitted to the stock exchanges.