UCAL reports FY26 net loss of ₹96.77 crore on exceptional items

UCAL Limited reported a standalone net loss of ₹96.77 crore for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹22.60 crore recorded in the previous year. The company’s board approved the audited financial results for the quarter and year ended March 31, 2026, on May 27, 2026. The deterioration in profitability was primarily attributed to exceptional items, specifically a write-down in the carrying amount of investments in its erstwhile foreign subsidiary, UCAL Holdings Inc., USA, following a dilution of its controlling interest.

Revenue from operations for the year increased to ₹646.64 crore, up from ₹582.80 crore in the prior year. For the quarter ended March 31, 2026, revenue stood at ₹181.35 crore. Despite the revenue growth, the company recorded a standalone net loss of ₹99.57 crore for the quarter, compared to a loss of ₹13.99 crore in the same period last year. The statutory auditors, R. Subramanian and Company LLP, issued an unmodified opinion on the standalone and consolidated financial results.

The exceptional items for the year included a charge of ₹103.68 crore related to the change due to the fair valuation of investments and a statutory impact of ₹2.39 crore arising from the new labour codes. These items significantly impacted the profit before tax, which turned negative at ₹91.98 crore for the year compared to a profit of ₹30.15 crore in FY25. On a consolidated basis, the company reported a net loss of ₹33.32 crore for FY26, widening from the net loss of ₹16.28 crore in the previous year.

Standalone Financial Performance

Particulars	Year Ended March 31, 2026 (₹ in Lakhs)	Year Ended March 31, 2025 (₹ in Lakhs)
Revenue from Operations	64,664.34	58,279.83
Total Income	65,140.43	60,178.88
Total Expenses	63,731.39	57,163.90
Profit/(Loss) for the period	(9,676.68)	2,260.38
Earnings per share (Basic) (₹)	(43.76)	10.22

The board meeting, which commenced at 11:30 A.M. and concluded at 5:10 P.M., also approved the consolidated financial results. The audit committee had reviewed and recommended the results prior to the board's approval. The company operates in a single segment, Automotive Components, and prepared the results in accordance with Indian Accounting Standards (Ind AS).

Consolidated Financial Performance

Particulars	Year Ended March 31, 2026 (₹ in Lakhs)	Year Ended March 31, 2025 (₹ in Lakhs)
Revenue from Operations	83,782.06	80,229.47
Total Income	84,357.75	82,449.47
Total Expenses	85,434.35	83,293.21
Profit/(Loss) for the period	(3,332.32)	(1,628.00)
Earnings per share (Basic) (₹)	(15.07)	(7.36)

The auditors highlighted an emphasis of matter in the consolidated report regarding reliance on the financial position certified by the management as of March 14, 2026, concerning the subsidiary UPIL USA, Inc. The consolidated results include the financials of UCAL Polymer Industries Limited and UPIL USA, Inc. The company’s total equity decreased to ₹2,796.66 crore in FY26 from ₹3,749.48 crore in the previous year on a standalone basis.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.96%	+11.60%	-1.34%	-18.96%	-40.51%	-38.56%

UCAL Limited has received a show cause notice from the Assistant Commissioner (ST), Ambattur Assessment Circle, regarding GST Input Tax Credit (ITC) details for the financial year 2023-24. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Notice Details and Requirements

The show cause notice was received by the company on April 24, 2026. The tax authorities have requested specific documentation related to GST compliance for the year 2023-24.

Parameter	Details
Issuing Authority	Assistant Commissioner (ST), Ambattur Assessment Circle
Date of Receipt	April 24, 2026
Period Under Review	2023-2024
Notice Type	Show Cause Notice

Compliance Requirements

The authorities have alleged that UCAL Limited has not furnished complete invoice-wise details as required under GST regulations. The specific requirements include:

Invoice-wise details of ITC claimed as per 4 A (5) of GSTR 3B
Month-wise details of claim periods
Invoice-wise details of ITC reversed as per 4 B (2) of GSTR 3B
Complete documentation for the financial year 2023-24

The authorities have provided the company with an opportunity to be heard in this matter.

Company's Response and Impact Assessment

UCAL Limited has assessed the situation and provided its position on the notice. The company maintains that there is no material impact on its financial, operational, or other activities due to the issuance of this show cause notice.

Impact Assessment	Company Position
Financial Impact	No material impact
Operational Impact	No material impact
Company's View	Notice lacks merit
Response Plan	Will furnish required details within timelines

The company believes that the show cause notice has no merits and plans to respond comprehensively. UCAL Limited will furnish the invoice-wise details of ITC claimed as per 4 A (5) of GSTR 3B along with month of claim and invoice-wise details of ITC reversed as per 4 B (2) of GSTR 3B for the year 2023-24 before the GST Authority within the prescribed timelines with the required evidence substantiating its position.