Tirupati Innovar Limited reported a net profit of ₹65.20 lakh for the financial year ended March 31, 2026, while revenue from operations increased significantly to ₹14273.02 lakh. Despite the top-line growth, the company's statutory auditors issued a disclaimer of opinion on the standalone financial results, citing an inability to obtain sufficient audit evidence to verify key financial figures. The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, in a meeting held on June 08, 2026.

Audit Disclaimer and Key Qualifications

Chandabhoy & Jassoobhoy Chartered Accountants, the independent auditor, stated they could not express an opinion on the accompanying standalone annual financial results. The disclaimer arises from the significance of several matters, including the company writing off trade payables without supporting documentation and failing to provide bifurcation of payables related to Micro, Small, and Medium Enterprises (MSME). The auditors noted that non-disclosure of MSME classification is not in compliance with the MSMED Act, 2006.

Further, the company reported significant trade receivable balances, but external balance confirmations for major outstanding amounts were not provided. The auditors also highlighted that the company reported substantial sales and purchases while reflecting nil closing stock, claiming goods are directly transferred from suppliers to customers. However, the existence of godown rent expenses appeared inconsistent with this representation, and the absence of stock records prevented verification of trading transactions.

Financial Performance for FY26

For the year ended March 31, 2026, Tirupati Innovar recorded a total revenue of ₹14422.55 lakh, up from ₹1180.63 lakh in the previous year. Total expenses for the period rose to ₹14335.43 lakh. The company reported a profit before tax of ₹87.12 lakh for the current year, compared to ₹133.18 lakh in the prior year. Basic earnings per share (EPS) for the year stood at ₹0.27, down from ₹0.41 in the previous year.

Balance Sheet and Cash Flow Highlights

The company's balance sheet as of March 31, 2026, showed total assets of ₹20955.78 lakh, a sharp increase from ₹6993.99 lakh in the previous year. Trade receivables surged to ₹15194.23 lakh from ₹1260.35 lakh, while trade payables stood at ₹14746.18 lakh. Cash and cash equivalents decreased to ₹9.48 lakh from ₹22.27 lakh. Cash flow from operating activities was negative at ₹(63.17) lakh, while financing activities provided a net inflow of ₹50.56 lakh.

Tirupati Innovar Limited has withdrawn its proposed rights issue aggregating up to ₹46.44 crore due to the non-receipt of basis of allotment approval from BSE Limited within the stipulated timeline. The Rights Issue Committee resolved to withdraw the issue on May 30, 2026, to protect investor interests after the delay led to blocked funds and investor complaints. The company is currently instructing banks to unblock the amounts, and shareholders whose funds remain blocked are advised to contact the registrar to the issue, Skyline Financial Services Pvt. Ltd.

The rights issue aimed to raise funds by issuing 4,64,42,650 equity shares of face value ₹10.00 each at a price of ₹10 per share. The shares were to be allotted to eligible equity shareholders in the ratio of 19 Rights Shares for every 10 Equity Shares held as on the record date. The issue was open for subscription from May 07, 2026, to May 15, 2026.

Rights Issue Details

The Board of Directors meeting commenced at 11.00 A.M. and concluded at 12.00 P.M. on May 30, 2026. The company stated that it will coordinate with the respective banks in consultation with Skyline Financial Services Pvt. Ltd to facilitate the unblocking of funds.