Cranex Ltd Reports Q2 Revenue of Rs 15.11 Crore and Profit of Rs 0.90 Crore

Revenue grew to Rs 15.11 crore from Rs 13.37 crore in the year-ago period, while net profit improved to Rs 0.90 crore from Rs 0.66 crore.

Reader Takeaway: Revenue growth signals operational demand, but significant auditor qualifications regarding asset valuation and inventory existence warrant caution.

What just happened

Cranex Ltd released its financial results for the quarter ended September 30, 2026. While the company recorded growth in both its topline and bottomline figures, the statutory audit report has flagged serious governance and accounting concerns.

Why this matters

The auditor, V.R. Bansal & Associates, issued a qualified opinion. The audit firm highlighted that trade receivable and payable balances remain unconfirmed. Furthermore, the company did not measure certain financial assets and liabilities at fair value as mandated by Ind AS-109, and failed to apply Expected Credit Loss (ECL) provisioning. Crucially, the company failed to provide an inventory register for physical verification, relying instead on management certification.

The backstory

In the previous quarter, the company finalized the conversion of 1.45 million convertible warrants into equity shares at Rs 102 per share, while 0.76 million warrants were forfeited. The firm continues to operate as a single segment manufacturer of EOT cranes and an installer of escalators.

Risks to watch

The lack of an accessible inventory register and the failure to apply equity method accounting for the joint venture with M/s Shree Construction cast doubt on the reliability of the reported financial statement. Shareholders should closely monitor if the board provides a corrective roadmap in upcoming filings.

What to track next

Watch for management responses regarding the reconciliation of trade balances and the establishment of formal inventory tracking processes to satisfy audit requirements.