Devoted Construction FY26 Performance and Regulatory Update

Net Loss: Rs 10.52 Lakh
Revenue from Operations: Rs 10.00 Lakh

Reader Takeaway: Revenue generation has started with a Rs 5 crore project, but trading suspension and compliance gaps continue to weigh heavily.

What just happened

Devoted Construction Ltd has reported its financial performance for the fiscal year 2025-26. The firm recorded a revenue of Rs 10 lakh, up from zero in the previous year. However, net losses widened to Rs 10.52 lakh from Rs 4.98 lakh in FY25. The company recently secured a project in Lucknow from Kaustubh Infraprojects Pvt Ltd valued at Rs 5 crore.

Why this matters

The company’s shares have been suspended from trading on the BSE since November 21, 2022, following non-compliance with SEBI regulations regarding depositories. While the company applied for revocation in March 2024, the process remains pending. This leaves shareholders with limited liquidity and visibility.

Corporate Governance and Audit

Statutory auditors highlighted that the company holds saleable FSI inventories valued at Rs 14,746.81 lakh based on historical costs. Management expects to recover these amounts upon disposal. Additionally, the company is currently in breach of Section 138 of the Companies Act, 2013, for failing to appoint an internal auditor. The secretarial auditor has formally noted this non-compliance.

Risks to watch

The primary risk for investors is the indefinite trading suspension. Continued non-compliance with statutory appointments and the reliance on future disposal of FSI inventories create uncertainty regarding the company's operational recovery and financial health.

What to track next

Watch for updates from the BSE regarding the revocation of the trading suspension. Also, monitor the execution speed of the newly secured Rs 5 crore project in Lucknow and the formal appointment of an internal auditor to resolve regulatory concerns.