Terraform Magnum Limited has confirmed that the disclosure requirements for related party transactions under Regulation 23(9) of the SEBI LODR Regulations are not applicable for the financial year ended March 31, 2026. This exemption is due to the company's scale, specifically its paid-up equity share capital and net worth falling below the thresholds mandated by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As on March 31, 2026, the paid-up equity share capital of the company is less than ₹10 crore and the net worth is less than ₹25 crore. These figures place the entity below the limits that trigger the mandatory disclosure of related party transactions and other corporate governance norms for listed entities.

In terms of Regulation 15(2) of the SEBI LODR Regulations, the compliance requirements for several regulations are not applicable to the company. These include Regulations 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, and 27, along with specific clauses of Regulation 46 and paragraphs of Schedule V.

The submission of this certificate to the stock exchange serves as formal intimation that the company is not required to submit the disclosure on related party transactions for the half year and financial year ended March 31, 2026. The communication was addressed to the Listing Compliance Department of BSE Limited.

The company, through its Company Secretary and Compliance Officer Harsh Shedge, stated that the information is submitted in compliance with the applicable provisions of the SEBI LODR Regulations.

Terraform Magnum Limited returned to profitability in the financial year ended March 31, 2026, posting a net profit of ₹4.16 lakh compared to a net loss of ₹8.54 lakh in the previous year. The turnaround was driven entirely by other income, which surged to ₹11.16 lakh from ₹0.18 lakh in FY25, as revenue from operations remained nil. Despite the profit, the company's net worth remains negative at ₹1,826.63 lakh as of March 31, 2026, which statutory auditors M/s. J.D. Zatakia & Company flagged as a material uncertainty regarding its status as a going concern.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026. The auditors issued an unmodified opinion on the financial statements but emphasized that the results were prepared on a going concern basis based on management's projections of future cash flows and business prospects. The company continues to face significant uncertainties regarding a property in Kandivali (East), where revenue recognition has been deferred under Ind AS 115 due to ongoing litigation and disputes over contractual obligations before the Hon'ble Bombay High Court.

Financial Performance

The company’s total income for FY26 stood at ₹11.16 lakh, a significant increase from ₹0.18 lakh in the prior year. Total expenses decreased to ₹6.99 lakh from ₹8.72 lakh in FY25. Earnings per share (EPS) for the year improved to ₹1.73 from a loss of ₹3.56 per share in the previous year. For the quarter ended March 31, 2026, the company recorded a net profit of ₹9.58 lakh.

Key Disclosures

The financial statements were prepared on a going concern basis, supported by internal assessments of business prospects, despite the negative net worth. The company has deferred revenue recognition for a property in Kandivali (East) due to ongoing disputes and litigation concerning title and ownership rights. The trading window for dealing in the company's equity shares remains closed for directors, employees, and promoters until 48 hours after the declaration of these financial results.