SPA Capital Services reported a rise in FY26 net profit to Rs 0.83 crore, but statutory auditors have qualified the financials over unprovided interest expenses and non-provisioning for specific loans. The company also announced its 42nd AGM for September 30, 2026, and board changes.
SPA Capital Services Reports FY26 Growth Amid Auditor Qualifications
FY26 Profit After Tax: Rs 0.83 crore | Auditor-noted Interest Expense Unprovided: Rs 0.77 crore
Reader Takeaway: Profit grew, but auditor concerns over loan provisioning and unbooked interest expenses warrant investor caution.
What just happened
SPA Capital Services held a board meeting on September 4, 2026, setting the date for its 42nd Annual General Meeting (AGM) for September 30, 2026. The board also approved the appointment of Ms. Sonia Batra as an Independent Director and regularised the appointment of Mr. Ritesh Tanwar. Furthermore, the company proposed a resolution to authorize related party transactions (RPTs) of up to Rs 50 crore annually.
Financial Snapshot
For the fiscal year ending March 31, 2026, the company posted a revenue of Rs 38.62 crore, compared to Rs 32.94 crore in the previous year. Profit After Tax (PAT) improved to Rs 0.83 crore from Rs 0.49 crore, with Earnings Per Share (EPS) rising to Rs 2.71 from Rs 1.61.
Why this matters
The statutory auditors, M/s Dhana & Associates, issued a qualified opinion on the FY26 results. The auditors highlighted that the company did not provide Rs 0.77 crore in interest expenses on outstanding loans, which they state has understated liabilities and overstated profit. Additionally, the auditors noted the company failed to provide for interest on Rs 3.14 crore of loans classified as 'loss assets', further impacting the accuracy of the financial statements.
Management Response
Management defended their position, stating that the disputed interest expenses do not require a provision. Regarding the non-performing loan assets, management maintains that the principal amounts remain recoverable and therefore does not deem additional provisioning necessary at this time.
What to track next
Investors should focus on the 42nd AGM, particularly regarding the approval of the proposed Rs 50 crore RPT resolution. Ongoing monitoring of the company's asset quality and the resolution of the auditor-flagged loan disputes will be critical for evaluating financial transparency.