Trescon Posts ₹2.51 Crore Loss in FY26, Restates Prior Year Results Amid Auditor Concerns

Trescon Limited has reported a consolidated net loss of ₹2.51 crore for the fiscal year ending March 31, 2026, on revenues of ₹42.04 crore. The company also recorded a standalone net loss of ₹0.29 crore for the period and confirmed that its financial statements for the year ended March 31, 2025, have been restated. These results are accompanied by significant auditor concerns that investors will be closely watching.

Restating Past Results

The restatement of the FY25 financials, made under Ind AS-8, involves adjustments to several key balance sheet items. These include Goodwill, Inventory, Other Financial Assets, Other Equity, Non-Controlling Interest, Borrowings, and Other Current Liabilities. Such retrospective adjustments can affect the comparability of historical financial data.

Auditor Concerns on Subsidiaries and Certification

The statutory auditor's report highlighted specific concerns. One major point is the reliance on management-provided data for subsidiaries that were not directly audited by the company's statutory auditors, raising questions about the completeness and accuracy of consolidated figures. Additionally, the auditor's peer review certificate had expired on April 30, 2026, with a new one pending as of May 1, 2026, which could lead to further audit-related scrutiny.

Company Background

Trescon Limited operates in the engineering, procurement, and construction (EPC) sector, providing services for infrastructure projects like power transmission and civil works. The company has focused on operational efficiency.

In prior periods (FY23-FY24), Trescon engaged in debt restructuring efforts, aiming to improve its financial standing. Reports indicate past challenges in securing timely financial audits for some of its subsidiary entities.

What This Means for Investors

Investors now have Trescon's FY26 performance data. However, comparing these results with FY25 will be challenging due to the mandated restatement of prior-year financials. The auditor's notes on subsidiary audits and the peer review certificate status are expected to draw significant investor attention.

Key Risks Ahead

Key risks include the company's dependence on unaudited subsidiary data, which could impact consolidated financial accuracy. The pending renewal of the statutory auditor's peer review certificate also presents a potential hurdle. Furthermore, Trescon continues to report net losses on both standalone and consolidated bases for FY26.

Peer Group Performance

Companies like Dilip Buildcon Ltd, KNR Constructions Ltd, and HG Infra Engineering Ltd operate in the broader Indian infrastructure and EPC space. While Trescon reported net losses in FY26, these peers are generally engaged in executing large infrastructure projects, with their recent performance varying but often demonstrating revenue growth and varying profitability.

FY26 Financial Snapshot

For context, Trescon's FY26 consolidated revenue was ₹42.04 crore. The consolidated net loss for the full year stood at ₹2.51 crore, while the standalone net loss was ₹0.29 crore. The fourth quarter of FY26 saw a consolidated net loss of ₹2.15 crore.

Next Steps for Trescon

Investors will be tracking Trescon's progress in addressing the auditor's concerns about unaudited subsidiary data. The timely renewal of the statutory auditor's peer review certificate is also a key point. The company's future focus will likely be on demonstrating a path toward profitability and clarifying the full implications of the FY25 financial restatements.