Kridhan Infra reports FY26 revenue of Rs 344.39 lakh, up from Rs 257.67 lakh, but auditors have issued a 'Qualified Opinion' citing doubts over the company's going-concern status. Management is seeking shareholder approval to increase borrowing limits to Rs 100 crore and investment limits to Rs 200 crore to support business stabilization. Investors are advised to watch the execution of turnaround plans closely due to negative net worth.
Kridhan Infra Reports FY26 Revenue Growth; Faces Auditor Scrutiny
Revenue for FY26 reached Rs 344.39 lakh, while Profit After Tax stood at Rs 220.53 lakh.
Reader Takeaway: Revenue grew year-on-year, but the auditor’s 'Qualified Opinion' regarding negative net worth highlights significant financial fragility.
What just happened
Kridhan Infra has released its FY 2025-26 annual report ahead of its 20th Annual General Meeting scheduled for September 29, 2026. The company posted a revenue of Rs 344.39 lakh, an increase from Rs 257.67 lakh in the previous fiscal year. However, the report is accompanied by a 'Qualified Opinion' from statutory auditors, M/s. Jignesh Savla & Associates, who expressed concerns regarding the company’s ability to continue as a going concern due to accumulated losses and negative net worth.
Why this matters
The auditor’s qualification suggests a lack of sufficient evidence to support management's turnaround strategy. For shareholders, this signals that despite top-line growth, the fundamental financial health of the business remains under significant pressure. The company is now seeking shareholder approval at the upcoming AGM to increase its borrowing limit to Rs 100 crore and investment/loan limits to Rs 200 crore, aiming to gain the financial flexibility required for operational recovery.
Board and Management Update
The company has formalized key leadership changes effective July 21, 2026, including the appointment of Mr. Badatala Sreenivasa Rao as an Independent Director and Mr. Krishnaprasad Sunder Rao as a Whole-time Director. Mr. Mithlesh Jaiswal has been appointed as an Executive Director while retaining his role as CFO. Furthermore, the company has proposed M/s U B Lakhani & Company as new statutory auditors for a five-year term.
Risks to watch
The primary risk for investors is the company’s negative net worth. The auditor's inability to confirm the feasibility of turnaround plans serves as a warning of potential future liquidity or solvency issues. Execution risk is high as the company attempts to balance debt-funded expansion with the need to restore profitability and positive equity.