Shristi Infrastructure Reports Widening Losses Amid Ongoing Financial Challenges
Shristi Infrastructure Development Corporation Limited's Q2 FY2026 results show worsening financial conditions. Standalone net loss reached Rs. 324.35 lakhs, while consolidated net loss was Rs. 519.28 lakhs. Auditors raised significant concerns, including non-provision of interest expense of Rs. 648.35 lakhs for the quarter. This understatement affects financial metrics, with the actual consolidated net loss estimated at Rs. 1,167.63 lakhs. The company's going concern status is uncertain due to consecutive losses, eroded net worth, and default on interest payments. Consolidated net worth stands at negative Rs. 14,008.97 lakhs.
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Shristi Infrastructure Development Corporation Limited has reported its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing deepening financial challenges and qualified conclusions from auditors.
Financial Performance
The company's standalone financial results paint a concerning picture:
| Particulars (in lakhs) | Q2 FY2026 | H1 FY2026 |
|---|---|---|
| Total income | 1,611.76 | 3,721.44 |
| Total Expenditure | 1,937.54 | 4,309.59 |
| Net Loss | (324.35) | (588.15) |
| Earnings Per Share (Rs.) | (1.46) | (2.65) |
On a consolidated basis, the situation appears even more challenging:
| Particulars (in lakhs) | Q2 FY2026 | H1 FY2026 |
|---|---|---|
| Total income | 1,611.76 | 3,721.44 |
| Total Expenditure | 1,937.75 | 4,309.87 |
| Net Loss | (519.28) | (981.44) |
| Earnings Per Share (Rs.) | (2.34) | (4.42) |
Auditor's Qualifications
The limited review report highlights significant concerns:
Non-provision of interest expense: The company has not provided for interest expense of Rs. 648.35 lakhs for the quarter and Rs. 1,289.65 lakhs for the half-year on borrowings from Srei Equipment Finance Limited. The cumulative non-provisioning of interest till September 30, 2025, stands at Rs. 11,179.98 lakhs.
Understatement of finance costs: Had the interest expense been recognized, the finance cost for the quarter would have been Rs. 1,038.74 lakhs instead of the reported Rs. 390.39 lakhs.
Impact on financial statements: The non-provision has led to an understatement of total expenses, net loss, and other financial metrics. For instance, the consolidated net loss for the quarter would have been Rs. 1,167.63 lakhs instead of the reported Rs. 519.28 lakhs.
Going Concern Uncertainty
The auditors have raised material uncertainty regarding the company's ability to continue as a going concern due to:
- Consecutive losses
- Fully eroded net worth
- Default on interest payments
Other Financial Metrics
- Standalone Net Worth: (Rs. 6,296.72 lakhs)
- Consolidated Net Worth: (Rs. 14,008.97 lakhs)
- Standalone Total Assets: Rs. 52,172.50 lakhs
- Consolidated Total Assets: Rs. 46,416.91 lakhs
Management's Response
The management has acknowledged the auditor's qualifications but has not provided detailed explanations or plans to address these issues in the limited review report.
Conclusion
Shristi Infrastructure faces significant financial challenges, with widening losses and serious concerns raised by auditors. The company's ability to manage its debt obligations and turn around its financial performance remains uncertain, as reflected in the qualified financial results for the quarter and half-year ended September 30, 2025.
Historical Stock Returns for Shristi Infrastructure
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | +3.87% | -1.58% | -18.00% | -38.11% | -11.48% |
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