Vikas Ecotech Ltd reported a standalone net loss of ₹109.74 lakh for the quarter ended March 31, 2026, reversing the net profit of ₹197.59 lakh recorded in the same period of the previous year. Total income for the quarter rose to ₹8,318.90 lakh from ₹7,960.60 lakh in Q4FY25, while total expenses increased to ₹8,605.13 lakh from ₹7,711.83 lakh. The company’s profit before tax for the quarter stood at a loss of ₹286.23 lakh, compared to a profit of ₹248.77 lakh in the prior year.

For the full financial year ended March 31, 2026, the company reported a standalone net profit of ₹12.72 lakh, a significant decline from the net profit of ₹1,428.14 lakh in FY25. Total annual income decreased to ₹26,782.87 lakh from ₹29,087.50 lakh in the previous year, with total expenses for the year at ₹26,664.05 lakh compared to ₹28,357.50 lakh in FY25.

On a consolidated basis, the company reported a net loss of ₹44.41 lakh for Q4FY26, compared to a net profit of ₹430.36 lakh in Q4FY25. Consolidated total income for the quarter was ₹11,775.75 lakh, up from ₹10,539.13 lakh in the corresponding quarter of the previous year. For the full year, consolidated net profit fell to ₹313.70 lakh from ₹1,698.37 lakh in FY25, with total income at ₹36,032.64 lakh against ₹38,384.98 lakh in the prior year.

The paid-up equity share capital remained constant at ₹13,883.56 lakh throughout the reported periods. Basic and diluted earnings per share (EPS) for the standalone results were reported at (₹0.01) for Q4FY26, compared to ₹0.01 in Q4FY25. For the full year, standalone EPS was ₹0.00, down from ₹0.09 in FY25.

Financial Results Summary

The following table outlines the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026:

The audited standalone financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 01, 2026. The statutory auditors carried out the audit of the results for the quarter and year ended March 31, 2026.

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.