Valecha Engineering Limited reported a standalone net profit of ₹1.76 crore for the financial year ended March 31, 2026, a significant decrease from ₹437.37 crore in the previous year. Revenue from operations for the year stood at ₹26.93 crore, down from ₹29.65 crore in FY25. The company’s board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, on June 05, 2026.

The standalone financial results reflect an exceptional loss of ₹3.91 crore for the year, primarily due to the diminution in the value of investments in subsidiaries and expected credit losses. The company recognized an impairment loss of ₹1.88 crore on investments in Valecha Infrastructure Limited, Professional Realtors Private Limited, and Valecha Reality Limited. Additionally, expected credit losses of ₹2.28 crore were recognized for trade receivables.

Standalone Financial Performance

The company’s total assets stood at ₹545.26 crore as of March 31, 2026, compared to ₹589.07 crore in the previous year. Equity attributable to shareholders decreased to ₹473.74 crore from ₹514.75 crore. Cash and cash equivalents were reported at ₹22.38 crore.

Consolidated Results

The consolidated financial results for the group showed a net loss of ₹228.98 crore for FY26, compared to a net profit of ₹228.37 crore in the previous year. Total consolidated revenue for the year was ₹32.97 crore. The group reported an exceptional loss of ₹3.82 crore, which included the write-off of goodwill on consolidation amounting to ₹1.80 crore due to continued losses and sub-optimal operations.

Key Disclosures

The statutory auditors, Jain Jagawat Kamdar & Co, issued an unmodified report on the financial results. The auditors drew attention to several matters, including the ongoing Corporate Insolvency Resolution Process (CIRP) for subsidiary Valecha Kachchh Toll Roads Limited and the non-provision of interest liabilities by some subsidiaries. The company also received an income tax demand of ₹191.23 crore for Assessment Year 2024-25, which it has challenged.

Valecha Engineering Limited continues to carry investments and loans to certain subsidiaries at book value pending recoverability assessments. The company has also recognized a claim recoverable from Canara Bank amounting to ₹15.41 crore, which will be distributed to financial creditors upon realization.

Ms. Ashlesha S. Raythattha has resigned as an Independent Director from the Board of Valecha Engineering Limited effective May 28, 2026. The resignation was submitted due to other professional commitments, with the director confirming there are no material reasons for the departure beyond those stated in her resignation letter. The company disclosed the development to the stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Resignation Details

The cessation of directorship occurred on May 28, 2026. In her resignation letter addressed to the Board, Ms. Raythattha stated that she would not be able to devote sufficient time towards discharging her responsibilities as a Director of the Company due to her other professional commitments. She requested the Board to relieve her of her duties and responsibilities effective from the date of the letter.

Regulatory Disclosures

Valecha Engineering Limited provided the necessary details as required under Regulation 30 read with Schedule III of the Listing Regulations and SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015. The disclosure confirmed that the resigning director does not hold directorship in any other listed entities.

Ms. Raythattha expressed her appreciation for the support and cooperation extended to her during her tenure, noting that it was a privilege to serve on the Board. The filing was signed by Vijaykumar Himatlal Modi, Company Secretary & Legal, on behalf of Valecha Engineering Limited.