Newtrac swings to profit on 7x revenue jump; auditor flags TDS defaults
Revenue surged to ₹22 crore from ₹2.95 crore in Q4 FY26, and the company posted a net profit of ₹8.30 lakh after a ₹6.17 crore loss. The same auditor that disclaimed FY26 is now flagging TDS non-compliance and missing invoices.
— 2 earlier stories on Newtrac Foods & Beverages Ltd. →What's new
- Revenue jumped to ₹22 crore from ₹2.95 crore sequentially, a 7x increase.
- Net profit of ₹8.30 lakh vs a loss of ₹6.17 crore in the prior quarter.
- Statutory auditor gave an unmodified opinion but flagged TDS defaults and unavailability of certain original invoices.
Why this matters
For a ₹9-crore market cap company that just had its FY26 audit disclaimed, a swing to profitability on a revenue surge is a material event. But the same auditor's fresh flags (TDS non-compliance, missing invoices) mean governance concerns haven't gone away. The turnaround is real on paper, but the audit quality questions persist.
What we're watching
- Whether the company clarifies the missing invoices and TDS provisions.
- If the revenue surge is sustainable or one-off.
- Any follow-up action from the auditor or regulator on the disclaimed FY26 audit.
The full read
Newtrac Foods just reported a quarter that looks like a turnaround: revenue surged to ₹22 crore from ₹2.95 crore in Q4 FY26, a 7x jump, and the company posted a net profit of ₹8.30 lakh against a ₹6.17 crore loss in the prior quarter. For a nano-cap with a ₹9 crore market cap, those numbers are startling. But the same auditor that disclaimed the FY26 audit is now flagging TDS non-compliance and the unavailability of original sales and purchase invoices. The opinion is unmodified, but the caveats are real. The profit is real on paper, but the governance story hasn't flipped, it's just less bad.
Questions answered
- How big is this revenue jump relative to Newtrac's size?
- Revenue went from ₹2.95 crore in Q4 FY26 to ₹22 crore in Q1 FY27, a 7x jump. For a company with a ₹9 crore market cap, that is a dramatic swing.
- Why did the auditor give an unmodified opinion despite flagging issues?
- The auditor's limited review opinion is unmodified, meaning the financial statements are fairly presented. But the review notes TDS non-compliance and that original invoices for certain sales and purchases were not available. These issues don't automatically lead to a qualified opinion but raise governance flags.
- What are the TDS non-compliance details?
- The auditor states that Newtrac did not comply with TDS deposit and filing deadlines under the Income-tax Act, and that interest and penalties have not been ascertained or provided for in the accounts.
- How does this compare to the company's prior audit?
- In June 2026, Newtrac's statutory auditor disclaimed its FY26 opinion because management withheld key documents. That disclaimer was far more severe. The current review is a limited review, not an audit, and the auditor's flags, while concerning, are less damning.
Newtrac Foods & Beverages Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on NEWTRAC →- 10 Jul 2026 · 5:42 PM IST Newtrac swings to profit on 7x revenue jump; auditor flags TDS defaults
- 18d ago Newtrac posts ₹22 cr revenue, swings to profit; auditor flags ongoing gaps
- 43d ago Newtrac's auditor disclaims FY26 opinion; management withheld key documents