Khaitan (India) Ltd Reports Q2 Results Amid Auditor Qualification

Revenue from Operations stood at Rs 3,587.97 Lakhs, with Profit After Tax at Rs 237.93 Lakhs.

Reader Takeaway: Steady quarterly profit persists, but auditor concerns regarding the idle sugar mill segment represent a material governance hurdle.

What just happened

Khaitan (India) Ltd released its unaudited financial results for the quarter and half-year ended September 30, 2026. The board approved these results, which show a Profit After Tax of Rs 237.93 Lakhs, slightly lower than the previous quarter's Rs 243.79 Lakhs. However, the report is accompanied by a qualified conclusion from the statutory auditor, K. C. Bhattacherjee & Paul LLP.

Why this matters

The core of the auditor's qualification lies in the classification of the company's sugar division. Because production at the sugar mill has been suspended for an extended period, the auditor argues that the division should be categorized as "Discontinued Operations." The company, however, continues to treat it as an ongoing concern, asserting that management is actively seeking working capital to resume operations.

Risks to watch

Investors should monitor the status of the sugar division closely. If the company fails to secure the necessary funding to restart the mill, the accounting treatment of this asset could come under further scrutiny. Additionally, the auditors noted that significant balances—including trade receivables, payables, and bank deposits—are still subject to third-party reconciliation and confirmation, which introduces uncertainty regarding the exact valuation of these line items.

What to track next

The primary monitorable is the company’s ability to secure working capital for the sugar division. Any formal move to reclassify the unit as a discontinued operation could have significant implications for the company’s balance sheet and reported profitability.