Gayatri Highways profit is a write-back. The auditor flagged ₹49 cr in impairments.
A ₹34.6 crore liability write-back swung the standalone books to profit. The statutory auditor qualified the accounts for unaddressed impairments and loan defaults.
— 1 earlier story on Gayatri Highways Ltd. →What's new
- Gayatri Highways reported a standalone net profit of ₹20.53 crore in FY26, reversing a prior year loss.
- The profit was driven by a ₹34.6 crore liability write-back and dividend income from HKR Roadways.
- The statutory auditor issued a qualified opinion on impairments and term loan defaults.
Why this matters
The standalone profit is an accounting mirage. Strip out the one-off write-backs and the core business is still haemorrhaging cash. The auditor's qualified opinion is the real news: it confirms that Gayatri's balance sheet problems, unaddressed impairments and loan defaults, have not gone away.
What we're watching
- Completion of the ₹200 crore HKR Roadways sale to Cube Highways, expected by June end.
- Whether the company can resolve the qualified audit opinion before the next reporting cycle.
- The consolidated result, which shows a net loss of ₹1.22 crore, as the true operating picture.
The full read
Gayatri Highways wants you to see a ₹20.53 crore profit. The auditor wants you to see ₹49.46 crore in unaddressed impairments and ₹50.15 crore in defaulted loans. The standalone FY26 profit is almost entirely a product of a ₹34.6 crore liability write-back and a dividend from HKR Roadways. Strip those out, and the operating picture is barren. The statutory auditor issued a qualified opinion citing impairments in Cyberabad and Hyderabad Expressways and continued loan defaults. A first-time qualification was also added on HEL. The consolidated number tells the fuller story: a net loss of ₹1.22 crore. Meanwhile, the ₹200 crore sale of its 49% HKR stake to Cube Highways remains pending with a June-end target. The profit headline is a distraction. The qualified opinion is the filing.
Questions answered
- How did Gayatri Highways report a profit when the auditor qualified the accounts?
- The standalone profit of ₹20.53 crore was driven by non-cash write-backs of ₹34.6 crore in liabilities and a dividend from HKR Roadways. These are one-off items, not operational performance.
- What exactly did the auditor qualify?
- The auditor flagged potential impairments of ₹49.46 crore in two jointly controlled road assets, Cyberabad and Hyderabad Expressways, and noted continued defaults on a ₹50.15 crore term loan. It also issued a first-time qualification on the impairment of HEL.
- What is the consolidated picture versus the standalone one?
- The consolidated result, which includes the jointly controlled entities, shows a net loss of ₹1.22 crore. This is a more accurate reflection of the group's financial health.
- What is the status of the HKR Roadways stake sale?
- Gayatri's planned sale of its 49% stake in HKR Roadways to Cube Highways for ₹200 crore has not yet closed. The company expects completion by the end of June.
- Why are the impairments in the joint ventures so significant?
- The ₹49.46 crore in potential impairments represents unaddressed write-downs on assets that Gayatri partially owns. Until these are resolved, the auditor cannot vouch for the full accuracy of the accounts.
Story so far
All notes on GAYAHWS →- 25 May 2026 · 3:55 PM IST Gayatri Highways profit is a write-back. The auditor flagged ₹49 cr in impairments.
- 42d ago Gayatri Highways auditor flags ₹49.46 cr impairment risk, loan default