State Trading Corporation of India reported a standalone net profit of ₹64,554.31 crore for FY26, a sharp rise from the ₹2,572.18 crore recorded in the previous fiscal year. The surge was driven by an exceptional one-time settlement (OTS) gain of ₹60,618.45 crore following the resolution of bank dues.

The board approved the annual audited consolidated financial results and unaudited standalone results for the quarter ended June 30, 2026, during its meeting on August 25, 2026. The company continues to operate on a non-going concern basis as per administrative ministry directives.

Financial Performance

The company's total income for FY26 stood at ₹9,621.92 crore, down from ₹12,507.80 crore in FY25. Total expenses decreased to ₹4,617.53 crore from ₹4,904.20 crore in the prior year. The profit before exceptional items and tax was ₹5,004.39 crore, compared to ₹7,603.40 crore in FY25.

For the quarter ended March 31, 2026, the standalone net profit after tax was ₹992.79 crore, up significantly from ₹348.68 crore in the same quarter last year. Earnings per share (basic) for the full year rose to ₹108.68 from ₹5.27 in FY25.

Audit Qualifications and Observations

Statutory auditors PVAR & Associates issued a qualified opinion on the standalone financial statements. The primary basis for qualification involved trade receivables amounting to ₹1,69,921.85 crore, which have been outstanding for over three years. The auditors noted that a provision of ₹1,07,194.23 crore for doubtful debts was understated, leading to an overstatement of profit by the same amount.

Other key audit observations included:

• Non-availability of title deeds for leasehold and freehold properties valued at over ₹70,000 crore.
• Non-revaluation of foreign currency receivables and payables under Ind AS 21.
• Unapproved financial statements of subsidiary STCL Limited, which led to a disclaimer of opinion on the consolidated financial statements.

What the Numbers Show

The reported net profit is overwhelmingly driven by non-operational factors. The exceptional item gain of ₹60,618.45 crore constitutes approximately 93% of the total net profit after tax of ₹64,554.31 crore. Excluding this one-time settlement benefit, the operational profit before tax stood at ₹5,004.39 crore, which represents a decline of 34% compared to the ₹7,603.40 crore operational profit in FY25. This divergence highlights that the core business performance weakened while the bottom line expanded due to the debt settlement.

Regulatory Compliance Issues

The company faced penalties from both BSE and NSE for non-compliance with SEBI LODR regulations. Fines totaling approximately ₹148.73 lakh were levied for violations related to board composition and delayed submission of financial results. These delays were attributed to the non-appointment of independent directors, which prevented the reconstitution of statutory board committees.

The State Trading Corporation of India Ltd has appointed Shri Raghvendra Singh as Additional Director (Director-Finance) effective June 29, 2026. The appointment strengthens the company's leadership with a senior official from the Ministry of Commerce & Industry. Singh brings over a decade of expertise in public finance, public debt management, and governance to the role.

The Board of Directors approved the appointment through circulation on July 3, 2026. This decision follows an order from the Ministry of Commerce & Industry, Department of Commerce, dated June 5, 2026. Singh is a 2013 batch officer of the Indian Audit and Accounts Service (IA&AS) and currently serves as Deputy Secretary in the Department of Commerce.

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that Singh is not related to any existing director on the Board and is not debarred from holding the position of director by any regulatory authority.

Profile of Shri Raghvendra Singh

Shri Raghvendra Singh holds a B.Tech degree in Electronics and Communication Engineering. His career includes key positions such as Director in the Comptroller and Auditor General (CAG) of India and Joint Director in the 16th Finance Commission. He does not hold any equity shares in the company.