Coromandel Engineering's auditor flags ₹10 cr in unpaid dues despite 38% revenue jump
Revenue surged to ₹43.09 crore, but the statutory auditor warned of persistent delays in remitting statutory dues and ₹10.05 crore in unpaid MSME creditors.
— 1 earlier story on Coromandel Engineering Company Ltd. →What's new
- Revenue rose to ₹43.09 cr in FY26 from ₹31.29 cr, but net profit fell to ₹16.88 lakh from ₹41.49 lakh.
- The statutory auditor reported persistent delays in paying GST, TDS, PF, and ESI dues.
- The auditor also reported unpaid MSME creditors of ₹10.05 crore.
Why this matters
The auditor's warnings on statutory compliance and MSME dues are material red flags for a nano-cap company. Delayed statutory payments strain working capital and signal potential cash-flow stress.
What we're watching
- Whether the company clears the statutory dues and MSME creditors in the coming quarters.
- The impact of director Baskaran's resignation on oversight.
- If the revenue growth can translate into sustainable net profit.
The full read
Coromandel Engineering's top line grew a solid 38% to ₹43.09 crore in FY26. Its bottom line did not. Net profit fell to ₹16.88 lakh, from ₹41.49 lakh a year earlier, a drop partly attributable to prior-year tax credits. The audit report is where the trouble lives. The statutory auditor flagged persistent delays in remitting GST, TDS, provident fund, and ESI dues, and reported unpaid MSME creditors of ₹10.05 crore. For a company with a market capitalisation of ₹273 crore, that MSME figure equals 23% of annual revenue. It's a significant working-capital drag. The board also reshuffled, adding promoter-group member Dr. Swetha as a non-executive director while accepting the resignation of director Mr. Baskaran. The revenue story is encouraging. The compliance and creditor story is not.
Questions answered
- Why is the auditor flagging these payment delays?
- The statutory auditor's report includes an emphasis of matter on the company's persistent delays in paying statutory dues like GST, TDS, PF, and ESI. It also reports unpaid MSME creditors of ₹10.05 crore, both material concerns indicating potential non-compliance and cash-flow issues.
- How did revenue and profit move in opposite directions?
- Coromandel's revenue grew 38% to ₹43.09 crore, but net profit fell 59% to ₹16.88 lakh. The rationale suggests the prior-year profit of ₹41.49 lakh included tax credits, meaning operational performance may have been weaker than the headline numbers suggest.
- What is the scale of the outstanding dues relative to the business?
- The unpaid MSME creditors of ₹10.05 crore are substantial for a company of this size, representing about 23% of its annual revenue. This is a significant working-capital overhang.
- What do the board changes mean?
- The company added Dr. Swetha, a promoter-group figure, as a non-executive director, reinforcing promoter control. Director Mr. Baskaran resigned citing pre-occupation, which could signal internal shifts or reduced oversight.
Coromandel Engineering Company Ltd.
Latest quarter · Dec 2025
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All notes on COROENGG →- 25 May 2026 · 7:50 PM IST Coromandel Engineering's auditor flags ₹10 cr in unpaid dues despite 38% revenue jump
- 53d ago Coromandel Engineering reports FY26 results with asset-light pivot