Square Four Projects Reports FY26 Loss of Rs 28.21 Lakh

Consolidated loss widened to Rs 28.21 lakh from Rs 7.78 lakh in FY25.
Standalone profit declined 56% to Rs 9.73 lakh compared to Rs 22.24 lakh previously.

Reader Takeaway: Company operations remain suspended with significant reliance on inter-corporate deposit interest and specific related-party lending.

What just happened

Square Four Projects India Ltd released its FY26 annual financial results, revealing a difficult fiscal year. The company recorded a consolidated loss of Rs 28.21 lakh. Crucially, the business currently generates zero revenue from its core real estate operations. Income is derived entirely from other sources, specifically interest earned on inter-corporate deposits. A significant regulatory update includes a Rs 21,240 fine paid to the BSE for the delayed filing of shareholding patterns for the quarter ended June 30, 2025.

Why this matters

The company’s auditors, M/s. P A R V & Associates, issued a qualified opinion regarding the valuation of unquoted investments worth Rs 39.50 lakh. The auditors noted that these valuations do not comply with Ind AS 109 and Ind AS 113. Furthermore, the audit identified a "material weakness" in the firm's internal financial controls regarding how these investments are valued. The board has acknowledged these findings and pledged to seek formal valuation reports from registered valuers in future periods.

Risks to watch

Investors should note the high concentration risk: 93.99% of the company's total inter-corporate loans (totaling Rs 523.07 lakh) are owed by a single related party, BRC Construction Co. Private Limited. Additionally, the company's status as a going concern is tied strictly to promoter support and the theoretical revival of suspended real estate projects. The lack of independent fair valuation for current investments continues to be a point of friction between management and auditors.

What to track next

Shareholders should monitor the upcoming Annual General Meeting (AGM) scheduled for September 24, 2026. The re-appointment of Director Somnath Samanta is on the agenda. More importantly, investors should track management's ability to rectify the identified weaknesses in internal financial controls and any progress on the long-term goal of restarting core operations.