Vedic Ayurveda (formerly KD Leisures) reported a net profit of ₹7.67 lakh for the June 2026 quarter, a turnaround from a loss. However, auditors raised concerns over unverified loan balances and non-filing of income tax returns.
Vedic Ayurveda Reports Profitability Turnaround Amid Auditor Qualifications
Revenue: ₹0.15 crore (₹15 lakh) Net Profit: ₹0.0767 crore (₹7.67 lakh) ## What just happened Vedic Ayurveda Limited, formerly known as KD Leisures Ltd, reported a net profit of ₹0.0767 crore (₹7.67 lakh) for the quarter ended June 30, 2026. This marks a significant turnaround from a net loss of ₹0.0165 crore (₹1.65 lakh) in the previous quarter. The company also generated revenue from operations amounting to ₹0.15 crore (₹15 lakh) during the period. Additionally, the company completed its name change from KD Leisures Limited to Vedic Ayurveda Limited effective June 12, 2026. ## Why this matters The return to profitability is a positive sign for shareholders after a period of loss. However, the company's financial statements for the June 2026 quarter received a qualified review report from the auditor. This indicates potential issues that investors need to be aware of regarding financial transparency and compliance. ## The backstory Prior to this quarter, KD Leisures was in a loss-making position, with a net loss reported in the March 2026 quarter. The company's strategic decision to change its name to Vedic Ayurveda Limited signals a potential shift in its business focus or corporate identity. ## What changes now While the financial results show an improved profit margin, the auditor's qualifications cast a shadow. Investors will be looking for future filings to see if these concerns are addressed. The name change is now official, so all future communications and reports will be under the Vedic Ayurveda Limited banner. ## Risks to watch The primary risks stem from the auditor's qualifications. These include the inability to verify closing balances of loans and advances due to a lack of management confirmation, and the company's admitted non-compliance with filing Income Tax Returns (ITR) since assessment year 2021-22, potentially leading to penalties. ## Peer comparison Information on comparable companies' recent financial performance and auditor report details is not available in the filing. ## Context metrics (time-bound) For the quarter ended June 30, 2026, revenue was ₹0.15 crore and total expenses were ₹0.0464 crore. For the quarter ended March 31, 2026, revenue was not provided, but total expenses were ₹0.0165 crore, resulting in a net loss of ₹0.0165 crore and EPS of (₹0.05). ## What to track next Investors should closely monitor how Vedic Ayurveda Limited addresses the auditor's qualifications, particularly regarding the verification of loan balances and the resolution of its income tax filing non-compliance. Future financial reports will be crucial to assess the company's progress in these areas.
