Harig Crankshafts Ltd has reported a profit of ₹10.33 crore for the year ended March 31, 2026, a significant turnaround from a massive loss in the previous year. However, the company's auditor issued a modified opinion due to non-filing of income tax returns for over a decade.
Harig Crankshafts Limited has reported a profit of ₹10.33 crore for the year ended March 31, 2026. This marks a significant turnaround from a loss of ₹54,334.09 crore in the previous fiscal year. Revenue from operations stood at ₹20.86 crore in FY26, compared to nil in FY25. Reader Takeaway: Profitability achieved post-NCLT, but tax compliance remains a major concern. ## What just happened Harig Crankshafts Limited announced its audited financial results for the year ended March 31, 2026. The company achieved a profit of ₹10.33 crore, a stark contrast to the substantial loss reported in the previous financial year. Revenue from operations was ₹20.86 crore for the period. The company also re-appointed Mr. Payas Agarwal as the Internal Auditor for FY 2026-27. ## Why this matters This financial turnaround signifies the potential stabilization of the company following its Corporate Insolvency Resolution Process (CIRP) and approval of a resolution plan by the National Company Law Tribunal (NCLT). The shift to profitability is a key indicator of operational recovery. However, the auditor's modified opinion raises significant concerns about the company's historical tax compliance. ## The backstory The company underwent a significant financial restructuring, including a CIRP and NCLT-approved resolution plan. The massive loss in the previous year reflected the distressed financial situation. The current results indicate progress in implementing the recovery plan. ## What changes now With the return to profitability and management's assertion of solvency on a 'going concern' basis, the company aims for sustained operations. The re-appointment of the internal auditor ensures continued internal financial oversight. However, the unresolved issue of tax filings presents an ongoing regulatory and financial risk. ## Risks to watch The primary risk highlighted is the auditor's modified opinion due to the non-filing of Income Tax Returns from Assessment Year 2012-13 to 2023-24. This lack of compliance could lead to potential penalties, interest, and future tax liabilities. The management's decision not to recognize any Deferred Tax Asset (DTA) due to insufficient evidence of future taxable profits also indicates uncertainty. ## Peer comparison Information on direct peers for Harig Crankshafts Ltd. undergoing similar NCLT resolution and turnaround phases with auditor qualification on tax non-filing is not readily available for direct comparison in this filing. ## Context metrics (time-bound) - Year ended 31.03.2026 Profit: ₹10.33 crore - Year ended 31.03.2025 Loss: ₹54,334.09 crore - Revenue from Operations FY26: ₹20.86 crore - Revenue from Operations FY25: ₹0.00 crore - EPS (Basic) FY26: ₹9.84 - EPS (Basic) FY25: ₹-4.45 - Income Tax Returns non-filed: AY 2012-13 to AY 2023-24 ## What to track next Investors should closely monitor the company's efforts to regularize its Income Tax Return filings. The ability to sustain profitability and generate sufficient taxable profits to potentially utilize past losses will be critical. Transparency regarding any future tax assessments and their financial impact will also be important.
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