Morgan Ventures Sees Profit Crash 84% in FY26, Battles MIDC Land Lease Revocation

Morgan Ventures reported a significant financial downturn for the fiscal year ending March 31, 2026, with net profit plummeting by 83.84% to ₹4.14 crore from ₹25.62 crore in the previous year. Revenue from operations also declined by 34.36% to ₹30.65 crore.

Reader Takeaway: Sharp profit decline and ongoing land litigation pose significant concerns for shareholders.

What just happened

Morgan Ventures Ltd. has announced its audited financial results for the fiscal year ending March 31, 2026. The company's net profit saw a drastic reduction, falling to ₹4.14 crore from ₹25.62 crore in FY25. Revenue from operations also decreased to ₹30.65 crore from ₹46.70 crore.

Why this matters

The sharp decline in profitability and revenue raises concerns about the company's operational performance and financial health. Furthermore, an ongoing legal battle with the Maharashtra Industrial Development Corporation (MIDC) over the revocation of lease rights for crucial land assets introduces significant operational and financial uncertainty.

The backstory

Morgan Ventures is contesting the MIDC's notice, dated August 31, 2024, which sought to revoke lease rights granted in 1980 for land plots totaling 76,483 sqm. These land assets are recorded at ₹20.02 crore on the company's books. The Bombay High Court has allowed MIDC symbolic possession while the final order is pending.

What changes now

The company's financial performance has deteriorated significantly. The ongoing litigation could impact the company's asset base and future operations. Additionally, outstanding loan amounts payable to related parties, Morgan Securities and Credits Pvt Ltd (₹10.04 crore) and Peacock Chemicals Pvt Ltd (₹20.29 crore), exceed 10% of the consolidated turnover.

Risks to watch

The primary risk is the ongoing litigation with MIDC regarding land lease revocation, which affects assets valued at ₹20.02 crore. The substantial related party transactions and increasing borrowings, which rose to ₹196.57 crore in FY26 from ₹171.10 crore in FY25, also present financial risks.

Peer comparison

While direct peer comparison requires specific data, a significant profit drop and asset-related litigation are generally viewed negatively by investors in the industrial sector.

Context metrics (time-bound)

• Net Profit FY26: ₹4.14 crore (down 83.84% from FY25 ₹25.62 crore)
• Revenue FY26: ₹30.65 crore (down 34.36% from FY25 ₹46.70 crore)
• Borrowings FY26: ₹196.57 crore (up from FY25 ₹171.10 crore)
• Land Assets in Dispute: ₹20.02 crore

What to track next

Investors should closely monitor the developments in the Bombay High Court case regarding the MIDC land lease revocation and the company's ability to manage its significant related party debt and overall borrowings.