Deep Polymers reported a 28.7% rise in FY26 net profit to ₹6.66 crore. However, auditors issued a qualified opinion for the fifth consecutive time, citing ₹3.08 crore in doubtful trade receivables and non-compliance with foreign currency restatement rules.
Deep Polymers FY26 Results Show Profit Growth Amid Persistent Audit Qualifications
Net Profit (Reported): ₹6.66 crore Revenue from Operations: ₹98.72 crore Reader Takeaway: Reported profit grew, but audit concerns over receivables and currency restatement temper the outlook. ## What just happened Deep Polymers Limited announced its financial results for the quarter and year ended March 31, 2026. The company reported a standalone revenue of ₹98.72 crore for FY26, a marginal increase of 0.56% from ₹98.17 crore in FY25. The reported standalone net profit saw a significant jump of 28.7%, reaching ₹6.66 crore in FY26 compared to ₹5.17 crore in FY25. ## Why this matters Despite the reported profit growth, the statutory auditors have issued a qualified opinion on the company's standalone and consolidated financial results. This marks the fifth consecutive time the auditors have raised concerns. The qualifications relate to ₹3.08 crore in trade receivables deemed doubtful, for which the company has not made a provision, and a failure to restate foreign currency monetary items as per accounting standards. ## The backstory This is the fifth consecutive time Deep Polymers has faced a qualified audit opinion. The primary concerns have consistently revolved around accounting for trade receivables and adherence to specific accounting standards. ## What changes now The qualified opinion means investors need to look beyond the reported profit figures. If the auditors' concerns were addressed, the adjusted standalone net profit for FY26 would be ₹3.58 crore, a substantial reduction from the reported ₹6.66 crore. This implies that the 'true' profitability is significantly lower than what is presented. ## Risks to watch The primary risk for investors is the potential impact of the unprovided doubtful trade receivables. If these are not recovered through legal proceedings, the company's profits and net worth are overstated. Furthermore, the repeated non-compliance with accounting standards raises governance concerns. ## Peer comparison (No peer comparison data available in the filing) ## Context metrics (time-bound) * **FY26 Standalone Revenue:** ₹98.72 crore * **FY26 Reported Net Profit:** ₹6.66 crore * **FY26 Adjusted Net Profit (considering audit adjustments):** ₹3.58 crore * **Doubtful Trade Receivables:** ₹3.08 crore * **Reported Basic EPS (FY26):** ₹7.21 * **Adjusted Basic EPS (FY26):** ₹5.94 ## What to track next Investors should closely monitor the company's efforts to recover the ₹3.08 crore in doubtful trade receivables. Additionally, compliance with accounting standards, particularly regarding foreign currency restatement in the upcoming financial year, will be crucial. The market will likely scrutinize future audit reports for any recurrence of these qualifications.
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