Dhruv consultancy Services Limited announced its unaudited financial results for Q3 and 9M FY26, highlighting a strategic accounting reassessment undertaken during the period. The infrastructure consultancy company reported its quarterly and nine-month performance while implementing enhanced financial discipline measures.

Financial Performance Overview

The company's financial results for the reporting period reflect both operational performance and strategic accounting adjustments:

Strategic Accounting Reassessment

During the current financial year, the company recorded an adjustment resulting from revisions to project cost and margin estimates in line with Ind AS 8 (Changes in Accounting Estimates) and Ind AS 115 (Revenue Recognition) requirements. This adjustment represents a refinement of previously estimated project costs and margins, reflecting a more prudent and conservative alignment of revenue recognition with updated project cost evaluations.

Key characteristics of the accounting impact include:

• Non-cash nature with no outflow of funds
• No effect on operational cash flows
• Refinement of forward-looking assumptions rather than misreporting
• No indication of structural weakness in execution capabilities
• Positive project-level profitability maintained across majority of contracts

Management Commentary

Mrs. Tanvi Dandawate Auti, Managing Director, stated that the company undertook a detailed reassessment of select long-term contracts as part of a governance-led review. She emphasized that the adjustment was a prudent step to align revenue recognition with updated project costs, scope realities, and certification status. The Managing Director highlighted that execution strength, client relationships, and order pipeline remain intact with an unexecuted order book of ₹256 Cr providing strong revenue visibility.

Business Fundamentals and Order Book

The company maintains strong operational fundamentals with stable order book strength and operational cash flows. The unexecuted order book of ₹256 Cr as of the reporting date provides revenue visibility for future periods. Enhanced cost monitoring mechanisms and tighter milestone-based controls have been implemented to improve stability and predictability in financial reporting.

Company Background and Performance

Established in 2003 and based in Navi Mumbai, Dhruv Consultancy Services provides infrastructure consultancy services including design, engineering, procurement, construction, and project management. The company has completed over 250 projects with clients including Ministry of Road Transport, NHAI, CIDCO, JNPT, MMRDA, and MSRDC.

The company has recorded a CAGR of over 72% in profitability growth since inception, leveraging technical expertise and management experience to establish its market position in the infrastructure consultancy sector.

Dhruv Consultancy Services Limited has reported its unaudited financial results for the third quarter ended December 31, 2025, revealing a significant downturn in financial performance. The company posted a net loss of ₹3,096.94 lakhs, marking a dramatic shift from the profit of ₹100.74 lakhs recorded in the previous quarter.

Financial Performance Overview

The company's financial results show a challenging quarter with revenue from operations turning negative at ₹(568.54) lakhs, compared to ₹1,923.10 lakhs in the previous quarter. This unusual negative revenue figure stems from significant adjustments made to project contract valuations.

Project Contract Reassessment Impact

The primary driver behind the poor quarterly performance was a comprehensive reassessment of cost estimates related to revenue recognized on certain project management service contracts. The company undertook this detailed review during the nine months period ended December 31, 2025, which significantly impacted the current quarter's results.

The revision in estimated margins arose due to multiple factors including upward revision of project costs, reassessment of stage of completion, extension of time on projects, status of work certification, and policy changes by customers.

Expense Analysis

Total expenses for the quarter increased to ₹2,538.76 lakhs from ₹1,874.97 lakhs in the previous quarter. The major expense categories included employee benefit expenses of ₹504.31 lakhs, other administrative expenses of ₹1,870.46 lakhs, depreciation and amortization expenses of ₹118.85 lakhs, and finance costs of ₹45.14 lakhs.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹3,458.18 lakhs compared to ₹7,436.53 lakhs in the corresponding period of the previous year. The net loss for the nine-month period stood at ₹2,836.52 lakhs against a profit of ₹491.08 lakhs in the previous year.

Legal and Regulatory Updates

The company continues to benefit from an interim stay granted by the Honorable High Court of Madras dated August 6, 2025, on the debarment order dated March 11, 2025, by NHAI. This interim protection remains in force until further orders from the court, ensuring that the status quo is maintained.

Consolidated Results

The consolidated financial results, which include the performance of subsidiary Dhruv International Private Limited, showed similar trends with a net loss of ₹3,101.45 lakhs for the quarter. The consolidated revenue from operations also turned negative at ₹(568.54) lakhs, reflecting the same project-related adjustments affecting the standalone results.