Prajay Engineers Syndicate Reports Q1 FY2026 Loss, Appoints New Internal Auditor

Prajay Engineers Syndicate Limited , a company engaged in construction, development, and hospitality sectors, has released its financial results for the first quarter of the fiscal year 2025-26, ending June 30, 2025. The company reported mixed results, with increased revenue but continued losses across its operations.

Financial Performance

Standalone Results

• Revenue from operations increased significantly to Rs 714.46 lakhs, up from Rs 249.20 lakhs in the corresponding quarter of the previous year.
• The company reported a standalone loss of Rs 230.27 lakhs, slightly higher than the Rs 215.53 lakhs loss in the same quarter last year.

Consolidated Results

• Revenue grew substantially to Rs 1,471.14 lakhs, compared to Rs 470.98 lakhs in the previous year's quarter.
• The consolidated loss narrowed to Rs 319.88 lakhs, an improvement from the Rs 537.27 lakhs loss reported in the same period last year.

Segment Performance

Prajay Engineers Syndicate operates in two main segments:

1. Construction and Development: Revenue increased to Rs 1,204.18 lakhs from Rs 247.25 lakhs in the previous year.
2. Hospitality - Hotels and Resorts: Revenue rose to Rs 266.96 lakhs from Rs 223.73 lakhs.

Corporate Updates

• The Board of Directors approved the unaudited financial results for Q1 FY2025-26 in a meeting held on August 14, 2025.
• M Shanker has been appointed as the new Internal Auditor of the company.

Legal Developments

• The company has executed settlement agreements in disputes with investor entities White Stock Limited and Belclare Limited. Cases before the National Company Law Tribunal (NCLT) Hyderabad have been disposed of as a result.
• Arbitration proceedings are ongoing with the Telangana government regarding lease and construction agreements. The Hon'ble High Court appointed Hon'ble S M Rafee (Retired District Judge) as the Arbitrator in this matter.

Outlook

While Prajay Engineers Syndicate is experiencing revenue growth across its segments, the company continues to face challenges in achieving profitability. The appointment of a new Internal Auditor and the resolution of certain legal disputes may signal efforts to strengthen internal controls and resolve outstanding issues. Investors and stakeholders will likely be watching closely to see if these steps, along with the revenue growth, will translate into improved profitability in the coming quarters.