Touchwood Entertainment Limited has received a Letter of Acceptance (LOA) from Delhi Metro Rail Corporation Limited (DMRC) to develop a property at Mohan Estate Metro Station. The project involves the development of a land plot admeasuring 8,903.77 Sq. Mtr. on Line-6 of the Delhi Metro Network. This strategic move allows the company to expand its footprint in the infrastructure and property development sector through a consortium model.

Joint Venture Structure

The Board of Directors approved the formation of a joint venture with Hometown Properties Private Limited to implement the project. The consortium agreement stipulates that Touchwood Entertainment Limited will hold a 70% stake, while Hometown Properties Private Limited will hold the remaining 30%. The joint venture company will undertake the development, operation, and management of the property subject to statutory and regulatory approvals.

Project Details

The project is a domestic contract awarded by DMRC. The execution timeline and financial consideration will be governed by the terms outlined in the LOA, the Request for Proposal (RFP), and definitive agreements to be signed with DMRC. The Board has authorized the directors and key managerial personnel to complete all necessary filings and documentation for the incorporation of the new entity.

Proposed Company Names

The Board has approved an application with the Ministry of Corporate Affairs to reserve the name of the new entity. The preferred names are:

• TOUCHTOWN VENTURES PRIVATE LIMITED
• AB TOUCHTOWN VENTURES PRIVATE LIMITED

The disclosure was made in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Touchwood Entertainment Limited reported a 21.2% decline in net profit to ₹424.56 crore for the financial year ended March 31, 2026, compared to ₹538.74 crore in the previous year, primarily due to a significant bad debt write-off. Revenue from operations for FY26 rose 8.3% to ₹7,458 crore from ₹6,885.42 crore in FY25. For the quarter ended March 31, 2026, the company recorded a net profit of ₹70.31 crore, a decrease from ₹139.98 crore in the corresponding quarter of the previous year, while revenue stood at ₹2,794.41 crore.

The board of directors, in its meeting held on May 25, 2026, approved the audited standalone and consolidated financial results. The company did not recommend any dividend for the financial year. The independent auditor, VSD & Associates, issued an unmodified opinion on the financial results but drew attention to two emphasis of matter paragraphs.

The auditors highlighted that the Income Tax department conducted a search and seizure operation at the company's corporate office from January 28, 2026, to January 31, 2026. The company cooperated with the authorities and is yet to receive any order regarding liability or tax demand, as the matter remains under investigation. During the search, officials seized ₹21 lakh in cash, which was recorded in the books of accounts.

Furthermore, the auditors noted that the company wrote off a balance under sundry debtors amounting to ₹99.20 crore during the year, which was outstanding for more than five years. This write-off significantly affected the profit for the quarter ended March 2026 and the financial year as a whole. The company operated solely in the event management services segment during the quarter and financial year under review, with no business activity in trading or construction services.

The board also re-appointed M/s. AAVN & Associates as the Internal Auditors and M/s. Agarwal Sudesh & Associates as the Tax Auditors for the financial year 2026-2027. Additionally, the board decided to rescind the proposed acquisition of 51% equity shares of Vanam Wellness & Celebration Private Limited due to commercial considerations and strategic business assessment.

Financial Performance

The following table summarizes the standalone financial results for Touchwood Entertainment Limited for the quarter and year ended March 31, 2026:

Segment Reporting

Touchwood Entertainment Limited reported that it evaluated its operating segments in accordance with Ind AS 108. While the company has multiple operating segments including event management services, trading, and construction services, it operated exclusively in the event management services segment during the quarter and financial year ended March 31, 2026. Consequently, there was no revenue generated from trading or construction services during this period. The entire revenue of ₹7,458 crore for the year was derived from event management services.