Dhruv Consultancy Services Reports INR 30 Crore Accounting Adjustment in Q3 FY26 Results
Dhruv Consultancy Services Limited reported a significant accounting adjustment of INR 30 crores during Q3 FY26, impacting nine-month revenue performance due to revisions in project cost estimates under Ind AS standards. Despite this non-cash book adjustment, the company achieved strategic expansion into aviation sector with its first airport project at MIHAN Nagpur and maintains a strong unexecuted order book of INR 256 crores. The infrastructure consultancy firm secured multiple new contracts across various states and continues international expansion in Africa and Middle East markets while pursuing its Vision 2030 for sectoral diversification.
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Dhruv consultancy Services Limited faced significant accounting adjustments during Q3 FY26, reporting a revenue reversal of approximately INR 30 crores that impacted its nine-month financial performance. The infrastructure consultancy firm disclosed these adjustments during its earnings conference call held on March 2, 2026.
Accounting Adjustment Details
The company's Managing Director, Ms. Tanvi Auti, explained that the adjustment arose from revisions to project cost and margin estimates undertaken in accordance with Ind AS 8 and Ind AS 115 standards. The revision followed a detailed review of select long-term contracts among the company's portfolio of 65-70 ongoing projects.
| Impact Details: | Amount/Description |
|---|---|
| Revenue Reversal: | INR 30 crores |
| Nature: | Non-cash accounting adjustment |
| Affected Projects: | 6-7 projects out of 65-70 total |
| Order Book Impact: | Reduced from INR 490 crores to INR 465 crores |
The adjustment primarily stemmed from policy changes implemented by NHAI, including modifications to deployment requirements, attendance thresholds, and project completion stages. Management emphasized that this represents a conservative alignment of revenue recognition with current project evaluations rather than any operational weakness.
Strategic Expansion into Aviation Sector
Despite the accounting impact, Dhruv Consultancy achieved a significant milestone with its entry into the aviation sector during Q3 FY26. The company secured its first airport project from Maharashtra Airport Development Company Limited (MADC) for consultancy services related to construction of link taxiways of approximately 1,950 meters at MIHAN Nagpur.
| New Sector Entry: | Details |
|---|---|
| Project Type: | Airport link taxiways construction |
| Length: | 1,950 meters |
| Client: | MADC (Maharashtra Airport Development Company) |
| Location: | MIHAN Nagpur |
The company has hired two airport executives with experience from Maharashtra Airport Development Corporation and submitted bids for four additional airport projects, positioning itself to benefit from the government's plan to develop 250-300 new airports in Tier 2 and Tier 3 cities.
Order Book and Contract Wins
During the quarter, Dhruv Consultancy secured multiple mandates across various states, strengthening its geographical diversification. The company was appointed as independent engineer by NHAI for operation and maintenance of NH-66 and NH-73 in Karnataka, and secured supervision consultancy contracts in Maharashtra covering 44 kilometers across four JNPT packages.
| Recent Contract Wins: | Description |
|---|---|
| Karnataka Projects: | NH-66 and NH-73 O&M including Kundapur-Surathkal section |
| Maharashtra: | 44 kilometers supervision across four JNPT packages |
| Tamil Nadu: | Dindigul-Natham section O&M supervision |
| Uttar Pradesh: | PMC for Awadh underpass Chouraha construction |
Additionally, the company received four orders from NHAI to prepare detailed project reports (DPRs) for Jalgaon southern bypass, Dhule ring road, Manmad-Malegaon, and Kerala packages. The company also secured empanelment with Odisha Bridge and Construction Corporation Limited for supervision of road and bridge projects.
Financial Performance and Order Book Strength
For the nine-month period of FY26, the company reported total revenue of INR 35.36 crores, impacted by the accounting adjustment. However, management stressed that the company maintains a robust unexecuted order book of INR 256 crores, providing healthy revenue visibility for coming quarters with an expected execution timeline of 2.5 to 3 years.
| Financial Highlights: | Nine-Month FY26 |
|---|---|
| Total Revenue: | INR 35.36 crores |
| Unexecuted Order Book: | INR 256 crores |
| Execution Timeline: | 2.5 to 3 years |
| Pending Bids: | INR 350 crores |
The company maintains a strike rate of 20% to 25% for Indian projects and continues exploring international opportunities in Africa, Middle East, and Southeast Asia. Current international operations include ongoing projects in Mozambique and Ghana, with payments being received in US dollars.
Operational Resilience and Future Outlook
Management emphasized that despite the accounting adjustment, the company's operational capabilities remain strong with positive cash flows of INR 70-75 crores during the current year. The adjustment represents a one-time revision to adopt more conservative estimation practices rather than any structural business weakness.
The company's Vision 2030 focuses on diversifying into multiple infrastructure sectors including railways, metros, and urban infrastructure, while maintaining its strong position in highways and bridges consultancy. With over 350 professionals, including more than 75% qualified engineers, Dhruv Consultancy continues to strengthen its technical capabilities for sustainable long-term growth.
Historical Stock Returns for Dhruv Consultancy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.24% | +2.90% | +11.82% | -46.36% | -59.63% | -61.91% |
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