Purohit Construction Ltd reported zero revenue from operations for Q2 FY27, shifting to a net loss of Rs 10.09 lakh compared to a profit in the same period last year. The company also recognized a Rs 69.45 lakh GST provision amid ongoing litigation and announced a new subsidiary, PEB PCL INFRACON LLP.
Purohit Construction Q2 Results: Loss Swings to Rs 10.09 Lakh
Q2 FY27 Net Loss: Rs 10.09 Lakh vs Q2 FY26 Profit of Rs 9.97 Lakh
Q2 FY27 Revenue: Rs 0 Lakh
Reader Takeaway: Operating revenue is nil while GST litigation adds a Rs 69.45 lakh provision, pressuring the company's bottom line.
What just happened
Purohit Construction Ltd announced its financial results for the quarter ended September 30, 2026. The firm recorded zero revenue from operations and a net loss of Rs 10.09 lakh, a sharp reversal from the Rs 9.97 lakh profit reported in the corresponding quarter of the previous year. For the half-year, the net loss widened to Rs 88.84 lakh.
Why this matters
The lack of operational revenue highlights a challenging business environment for the construction firm. Investors must monitor the impact of a Rs 69.45 lakh GST provision, which the company has set aside following a tax dispute. The company has appealed to the Goods and Services Tax Appellate Tribunal (GSTAT) after the Commissioner (Appeals) rejected their initial challenge in June 2026.
Corporate Action
The company established a new subsidiary, PEB PCL INFRACON LLP, on July 15, 2026. Purohit Construction holds a 51% stake in the entity, and these results are the first to incorporate the subsidiary’s performance on a consolidated basis.
Risks to watch
- Ongoing GST Litigation: The outcome of the GSTAT appeal remains uncertain, creating a potential financial overhang.
- Cash Flow: The firm reported negative net cash flow from operations of Rs 26.98 lakh for the half-year period, indicating liquidity pressure.
- Financial Performance: Continued lack of revenue is a primary concern for long-term operational viability.