Square Four Projects reported a standalone net profit of ₹2.02 lakh for the quarter ended June 30, 2026, while its consolidated entity posted a net loss of ₹6.91 lakh. The divergence between the parent and group results highlights the financial drag from its subsidiary, BRC Construction Company Private Limited. Statutory auditors P A R V & Associates issued a qualified opinion on both sets of accounts, citing a failure to measure certain financial assets at fair value as mandated by Indian Accounting Standard (Ind AS) 109.

The Board of Directors, led by Managing Director Ganesh Kumar Singhania, approved the unaudited financial results on August 5, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee also reviewed the results prior to board approval. The company operates solely in the Real Estate segment, rendering separate segment reporting unnecessary.

Financial Performance

Standalone revenue from operations was nil for the quarter, with total income derived entirely from other income amounting to ₹9.17 lakh. This represents a decline from ₹9.81 lakh in Q1FY25. Total expenses stood at ₹7.15 lakh, driven primarily by other expenses of ₹5.11 lakh and employee benefit expenses of ₹2.04 lakh. Consequently, profit before tax was ₹2.02 lakh, resulting in a net profit of ₹2.02 lakh since no current or deferred tax expenses were recognized for the period.

In contrast, the consolidated statement showed a more challenging picture. Total income for the group was ₹0.34 lakh from other income, with no revenue from operations. Total expenses rose to ₹7.25 lakh, including employee benefits of ₹2.04 lakh and other expenses of ₹5.21 lakh. This resulted in a loss before tax of ₹6.91 lakh, which flowed through to the bottom line as a net loss of ₹6.91 lakh.

Auditor Qualification

The qualified opinion issued by CA Parag Kumar Lath of P A R V & Associates centers on ₹39,50,000 worth of financial assets carried at cost as of June 30, 2026. Under Ind AS 109 and Ind AS 113, these assets should be measured at fair value. The auditors noted that without management’s determination of this fair value, they could not assess the impact on the profit for the quarter or related deferred tax balances. This qualification applies to both the standalone and consolidated financial statements.

Additionally, the consolidated review noted that the interim financial information of the wholly-owned subsidiary, BRC Construction Company Private Limited, had not been reviewed by its own auditor. The subsidiary reported nil revenue and a net loss of ₹9,664.97 for the three months ended June 30, 2026. The parent company’s conclusion on the consolidated statement relies solely on the information furnished by management regarding the subsidiary.

What the Numbers Show

The primary driver of the consolidated loss is the operational drag from the subsidiary, BRC Construction Company Private Limited, which reported a net loss of ₹9,664.97 against nil revenue. While the parent company remains profitable on a standalone basis through other income, the group’s overall health is weighed down by the subsidiary’s performance. The auditor’s qualification regarding the fair value measurement of ₹39,50,000 in financial assets introduces uncertainty into the reported figures, suggesting that the actual financial position could differ if fair value adjustments were applied. Investors should note that the company has no securities listed on recognized stock exchanges that would trigger additional disclosures under Regulation 52(4) of the SEBI LODR Regulations.

Square Four Projects India Limited reported a 56.3% decline in net profit to ₹9.73 lakh for the financial year ended March 31, 2026, compared to ₹22.24 lakh in the previous year. The company's total income decreased to ₹38.43 lakh from ₹52.29 lakh in FY25, primarily driven by a reduction in other income. For the quarter ended March 31, 2026, the company recorded a net loss of ₹1.16 lakh, contrasting with a profit of ₹3.56 lakh in the preceding quarter.

The Board of Directors approved the audited financial results for the quarter and financial year ended March 31, 2026, at a meeting held on May 27, 2026. The filing was submitted to the Bombay Stock Exchange pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor's Qualified Opinion

P A R V & Associates, the statutory auditor, issued a qualified opinion on the standalone financial results. The report highlighted that the company did not carry out the fair valuation of certain investments amounting to ₹39.80 lakh as required under Ind AS 109 and Ind AS 113. Consequently, the auditor stated they were unable to determine the impact of this omission on the carrying value of investments, other comprehensive income, and profit or loss for the period.

Financial Performance

The company's expenses for the year increased to ₹25.28 lakh from ₹22.98 lakh in the prior year. Employee benefit expenses rose to ₹5.59 lakh from ₹5.30 lakh, while other expenses increased to ₹19.99 lakh from ₹17.68 lakh. Profit before tax for the year stood at ₹13.15 lakh, a significant decrease from ₹29.31 lakh in FY25.

Consolidated Results

On a consolidated basis, which includes subsidiary BRC Construction Company Private Limited, the company reported a net loss of ₹28.21 lakh for FY26, compared to a net loss of ₹7.78 lakh in the previous year. Total consolidated income fell to ₹1.36 lakh from ₹23.61 lakh. The auditor also issued a qualified opinion for the consolidated results, citing the lack of fair valuation for investments amounting to ₹39.50 lakh.