Vikas Ecotech reported a standalone net profit of ₹0.13 crore for the financial year ended March 31, 2026, a sharp decline from ₹14.28 crore in the previous year. Revenue from operations fell to ₹261.63 crore from ₹285.82 crore in FY25. The statutory auditors issued a qualified opinion on the financial results, highlighting material uncertainties regarding statutory dues, related party transactions, and the recoverability of specific loans and investments.

Qualified Opinion and Audit Observations

KSMC & Associates, the Statutory Auditors, qualified their opinion due to several material factors. The report noted delays in the deposit of statutory dues while the company continued business and investment activities. Auditors stated they lacked sufficient evidence regarding the business rationale for investments and inter-corporate deposits made during the year. Additionally, the company entered into material related party transactions with promoter group entities and subsidiaries without obtaining requisite shareholder approvals prior to the year-end.

Asset Recovery and Investment Concerns

The auditors flagged an outstanding loan of ₹18.50 crore for which they could not obtain sufficient evidence regarding recoverability, including external balance confirmations or the borrower's financial statements. Furthermore, a Memorandum of Understanding with M/s BG Technocrats Private Limited involving an investment of ₹132.50 crore was cancelled during the year. While the company received ₹47.00 crore and recognized a receivable of ₹85.50 crore, auditors noted a lack of evidence regarding the cancellation agreement and the recoverability of the remaining balance, which stood at ₹42.53 crore subsequent to the balance sheet date.

Real Estate Commitment and Tax Demands

The company committed ₹100.00 crore to a real estate project with Silverline Furnishing and Furnitures Private Limited, advancing ₹55.50 crore as of March 31, 2026. Auditors were unable to obtain evidence regarding the commercial rationale or statutory approvals for the project. Additionally, the company received income tax demand notices aggregating ₹17.71 crore, which it is contesting. No provision has been made for these demands as management believes the likelihood of an outflow is remote.

Financial Performance

For the quarter ended March 31, 2026, the company reported a standalone net loss of ₹1.10 crore, compared to a net profit of ₹1.98 crore in the same period last year. Total income for the quarter stood at ₹83.19 crore. On a consolidated basis, the company reported a net profit of ₹3.14 crore for FY26, down from ₹16.98 crore in the previous year, with total income at ₹360.33 crore.

Vikas Ecotech disclosed to the stock exchanges on June 23, 2026 that its promoter has received a Provisional Attachment Order from the Directorate of Enforcement. The order, dated June 05, 2026, pertains to proceedings involving certain foreign entities and SEBI-registered Foreign Portfolio Investors (FPIs). The authorities are examining transactions related to alleged ultimate beneficiaries and alleged third-party predicate offences.

The company clarified that no predicate offence has been alleged against Vikas Ecotech or its promoters in the said proceedings. Management stated that the matter is being examined and appropriate recourse will be pursued in accordance with applicable law as advised.

Vikas Ecotech emphasized that there is no impact on its business operations, financial position, customer commitments, or strategic priorities. The company continues to operate in the normal course despite the regulatory development involving its promoter.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted the requisite details in an annexure, referencing SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Key Details of the Order