TCI Finance reported a standalone net loss of ₹178.35 lakh for the quarter ended March 31, 2026, as total income remained flat at ₹48.37 lakh. The company’s financial performance was significantly impacted by audit qualifications, which, if adjusted, would have widened the net loss to ₹17,999.24 lakh. The negative earnings per share (EPS) was reported at ₹1.39, which would deepen to ₹139.83 upon adjusting for the auditors' qualifications.

The Board of Directors approved the standalone audited financial results for the fourth quarter and year ended March 31, 2026, in a meeting held on May 25, 2026. Mr. Dhanpat Ram Agarwal was authorized to sign and submit the results to the stock exchanges. The revised financial results were filed in XBRL format on June 30, 2026.

Audit Qualifications and Financial Impact

Statutory auditor G.D. Upadhyay & Co. issued three key qualifications in the report. The primary concern involves claims aggregating ₹25,619.80 lakh by lenders of Amrit Jal Ventures Private Limited and Gati Infrastructure Bhasmey Power Private Limited due to the invocation of corporate guarantees. While the company has provisioned ₹7,798.91 lakh, the auditors believe the entire liability should be recognized, increasing the loss by ₹17,820.89 lakh.

Going Concern and Regulatory Status

Auditors expressed doubt over the company's status as a going concern due to the devolved liabilities and insufficient evidence to support continuity. Management countered that it is exploring new business ventures to revive the company and justified preparing the financial statements on a going concern basis. Additionally, the Reserve Bank of India (RBI) has requested the company to surrender its Certificate of Registration as a Non-Banking Financial Company (NBFC) due to non-maintenance of minimum Net Owned Funds, though the company has sought an extension to augment these funds.

TCI Finance reported a net loss of ₹178.35 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹358.13 lakh in the previous year. The company's total income for the year stood at ₹48.37 lakh, a significant decline from ₹673.38 lakh in FY25. The statutory auditors, G.D. Upadhyay & Co., issued a qualified opinion on the financial results, highlighting material uncertainties regarding the company's ability to continue as a going concern and the non-recognition of significant liabilities.

The board approved the audited standalone financial results for the fourth quarter and fiscal year ended March 31, 2026, at a meeting held on May 25, 2026. The meeting was conducted pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board also approved the book closure from August 21, 2026, to August 27, 2026, and the convening of the 52nd Annual General Meeting (AGM) on August 27, 2026, through video conferencing.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net profit of ₹10.50 lakh, a sharp decrease from ₹453.04 lakh in the corresponding quarter of the previous year. Total income for the quarter was ₹48.14 lakh, down from ₹666.21 lakh in Q4 FY25. The basic earnings per share (EPS) for the year stood at a negative ₹1.39, compared to a positive ₹2.78 in the previous year.

Audit Qualifications and Risks

The auditors qualified their opinion regarding the company's corporate guarantees to Amrit Jal Ventures Private Limited and its subsidiary. Lenders have invoked guarantees aggregating to ₹25,619.80 lakh, with claims of ₹17,820.89 lakh outstanding. The company has disclosed this as a contingent liability, but the auditors stated that the liability ought to have been recognised in the books, which would increase the loss for the year by ₹17,820.89 lakh.

Furthermore, the auditors emphasised that the preparation of financial statements on a going concern basis is not appropriate due to substantial exposures to entities where loans, guarantees, or investments have been adversely affected. The management stated it is identifying alternatives to revive the company. Additionally, the Reserve Bank of India (RBI) has directed the company to surrender its Certificate of Registration for voluntary deregistration as an NBFC due to non-maintenance of minimum Net Owned Funds; the company has filed a writ petition in the Hon'ble High Court of Telangana against this notice, and an interim stay is in force.

The trading window for dealing in equity shares, which was closed from April 1, 2026, will reopen 48 hours after the declaration of the audited financial results.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE911B01018/93fc4dc3d6c841ab.pdf