Indobell's profit is built on a ₹1.21 cr write-back the auditor can't check
A reversal of old liabilities, which the auditor flagged as unverifiable, is larger than the company's entire net profit for the year.
— 7 earlier stories on Indobell Insulations Ltd. →What's new
- FY26 revenue fell 39% to ₹15.58 crore; net profit dropped 63% to ₹0.80 crore.
- Auditor flagged a ₹1.21 crore write-back of old liabilities booked as other income, unable to verify it.
- No dividend. Board confirmed CEO Mayank Burman's appointment effective June 1.
Why this matters
The auditor's emphasis-of-matter isn't a footnote. On a ₹15.58 crore revenue base, a ₹1.21 crore unverified income item that is larger than the reported profit raises questions about the quality of the earnings themselves. Strip out the write-back and the bottom line looks very different.
What we're watching
- Indobell's explanation for the unverifiable credit-balance reversal.
- Whether the auditor's note prompts a closer look from regulators.
- How new CEO Mayank Burman addresses the operational shrinkage.
The full read
Revenue fell 39% to ₹15.58 crore. Net profit dropped 63% to ₹0.80 crore. Then there is the ₹1.21 crore write-back. The auditor flagged it because it could not verify the transaction. That single item is 52% larger than the company's entire net profit. Strip it out, and the profit figure collapses. The write-back dominates the results. On a company this size, the inability to verify an income item of this magnitude is the core issue. The CEO appointment and the skipped dividend are footnotes. The immediate problem is accounting. The underlying one is a business that shrank by more than a third. Hardly a foundation for a new CEO.
Questions answered
- Why did the auditor highlight the ₹1.21 crore write-back?
- The auditor could not independently verify the reversal of long-outstanding credit balances that the company booked as income. It was flagged as an emphasis-of-matter because its size and nature make it material to the financial statements.
- How large is the write-back relative to the company's profit?
- The ₹1.21 crore write-back is 52% larger than the entire FY26 net profit of ₹0.80 crore. The implication is that without this unverified item, the company's core operations did not generate a profit.
- What drove the drop in profit?
- A 39% fall in revenue to ₹15.58 crore was the primary driver. Net profit dropped 63% to ₹0.80 crore, a decline amplified by the fact that the final profit figure is itself dependent on an unverifiable income credit.
- Is the CEO appointment new information?
- No. The board confirmed the earlier appointment of Mayank Burman as CEO, effective June 1. The filing adds no new detail about his mandate or the company's strategy.
Indobell Insulations Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on INDOBELL →- 22 May 2026 · 5:33 PM IST Indobell's profit is built on a ₹1.21 cr write-back the auditor can't check
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