What’s new

• Auditors issued a qualified opinion on Kaarya's FY26 results, citing unbooked interest on ₹7.58 cr in GST liabilities.
• The omission overstates the reported ₹2.02 cr net profit on ₹38.89 cr revenue.
• Auditors also flagged unquantified gratuity obligations and unreconciled trade receivable/payable balances.

Why it matters

The auditor has effectively said the numbers don't add up. For a company with a ₹26 crore market cap, a ₹7.58 crore liability that wasn't provisioned for is not a rounding error. It is larger than three years of reported profit.

What we’re watching

• Whether Kaarya restates its FY26 numbers after the qualification.
• SEBI's response to the governance lapses flagged in the audit report.
• The actual quantum of the unbooked gratuity and trade-balance discrepancies.

The full read

Kaarya Facilities reported FY26 net profit of ₹2.02 crore on revenue of ₹38.89 crore. Its auditor, Piyush Kothari & Associates, won't stand behind those numbers. The core issue is ₹7.58 crore in outstanding GST liabilities for which the company never booked interest. That omission alone overstated the profit. The auditor also flagged unquantified gratuity obligations for field staff and unreconciled balances across trade receivables and payables. For context, the company's entire market capitalization is ₹26 crore. A liability of ₹7.58 crore is not a detail. It is nearly four years of reported profit and 20% of annual revenue, sitting unprovisioned on the balance sheet. The qualification makes the audited numbers unreliable. Hardly a rounding error.

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