Gayatri Highways Sets AGM Date Amidst Severe Audit Qualifications

Standalone PAT rose to Rs 20.53 crore from Rs 0.31 crore; company faces unresolved debt defaults.

Reader Takeaway: Improved annual profits face intense scrutiny from auditors regarding related-party exposure and significant debt default concerns.

What just happened

Gayatri Highways Limited (GHL) has scheduled its 20th Annual General Meeting (AGM) for September 29, 2026. The meeting agenda includes the appointment of M/s. PPKG & Co. as Statutory Auditors and a shareholder vote on a material related-party transaction involving a Rs 150 crore loan to Gayatri Projects Limited. Gayatri Projects and its promoters currently hold a 61.15% stake in the company.

Why this matters

The company’s financial health is under the scanner due to a qualified Independent Auditor's Report. Auditors raised concerns over the write-back of zero-interest loans, which they state led to an overstatement of equity. Furthermore, the company has defaulted on term loans and interest payments totaling over Rs 50 crore to IL&FS Financial Services, with additional unprovided interest liabilities flagged by the auditors.

Risks to watch

Investors should note the failure to impair investments in jointly controlled entities (Cyberabad Expressways and Hyderabad Expressways) despite their negative net worth. Additionally, the company could not consolidate its subsidiary, Indore Dewas Tollways, because the unit is under liquidation, raising questions about financial visibility.

Context metrics

For FY 2025-26, the company reported an income of Rs 52.06 crore and a Basic EPS of Rs 0.86, showing a year-on-year improvement from the previous fiscal year's income of Rs 25.87 crore and EPS of Rs 0.01.

What to track next

Shareholders must monitor the voting outcome for the Rs 150 crore inter-corporate deposit to a related party, especially given the company's existing debt defaults and the repeated nature of the auditor's concerns regarding financial governance.