Crest Ventures profit halves as auditors flag ₹155 cr in deposits
Standalone profit fell nearly 50% to ₹39.5 cr, while management continues to defend the recovery of ₹155.3 cr in unsecured deposits.
— 1 earlier story on Crest Ventures Ltd. →What's new
- Standalone net profit fell nearly 50% year-on-year to ₹39.5 cr.
- Consolidated net profit dropped to ₹47.9 cr from ₹90.2 cr.
- Auditors repeated an emphasis of matter regarding ₹155.3 cr in unsecured deposits.
Why it matters
The earnings slump is compounded by a persistent auditor concern over a significant deposit base. While management defends the recoverability of these funds, the annual repeat of this note suggests a liquidity or classification issue that refuses to go away.
What we're watching
- Evidence of recovery regarding the ₹155.3 cr in unsecured deposits.
- Dividend sustainability if profits continue to contract.
- Further clarity on the nature of the deposit exposure.
The full read
Crest Ventures posted a difficult FY26 as profits collapsed across the board. Standalone net profit fell to ₹39.5 crore from ₹78.8 crore, while consolidated earnings slid to ₹47.9 crore from ₹90.2 crore. Profits halved.
Despite the 50% earnings wipeout, the board recommended a steady final dividend of ₹1 per share. The more pressing concern remains the auditor's report, which brings back an emphasis of matter regarding ₹155.3 crore in unsecured deposits that the company claims remain fully recoverable despite the persistent lack of resolution. This issue is a carryover from previous reporting periods. Management insists the funds are safe, but the recurring nature of the auditor's flag prevents a clean bill of health. Investors now face a dual pressure: a shrinking bottom line and an unresolved balance sheet item that has lingered for multiple quarters without reaching a final conclusion.