PBA Infrastructure posts ₹82 cr loss, auditor flags going-concern risk
A qualified audit opinion cites ₹214.59 cr in defaulted loans and SARFAESI proceedings. The company has been an NPA since 2018.
What's new
- PBA Infrastructure swung from a ₹2.22 cr profit to an ₹82.02 cr net loss in FY26.
- Revenue fell 46% to ₹24.84 cr from ₹45.88 cr in FY25.
- Auditor qualified the report, citing ₹214.59 cr in defaulted bank loans and SARFAESI proceedings.
Why this matters
The qualified opinion and going-concern flag are the most serious signals a public company can receive from its auditor. A defaulting NPA since 2018 with ₹214.59 cr in bad loans has no visible path to recovery in these numbers.
What we're watching
- Whether lenders initiate SARFAESI recovery actions given the active proceedings.
- If the ₹13.07 cr in uncertified work-in-progress claims are ever realised.
- Any response from the company to the auditor's going-concern qualification.
The full read
PBA Infrastructure's FY26 results are dire. The company reported a net loss of ₹82.02 crore on revenue of just ₹24.84 crore, a 46% drop from the prior year. The bottom line swung from a ₹2.22 crore profit. The numbers, however, are almost secondary to the auditor's qualified opinion. N.K. Mittal & Associates flagged ₹214.59 crore in defaulted bank loans, active SARFAESI proceedings, and a going-concern warning. PBA has been an NPA since 2018 and has not provisioned for interest since then. On top of that, ₹13.07 crore in uncertified work-in-progress claims hangs on the balance sheet with no clear path to recovery. For a nano-cap with a ₹24.84 crore revenue run-rate, ₹214.59 crore in bad loans is a debt overhang the company cannot dig out of organically.
Questions answered
- What did the auditor's qualified opinion actually say?
- The auditor, N.K. Mittal & Associates, issued a qualified opinion citing massive loan defaults totalling ₹214.59 cr and active SARFAESI proceedings. The report raised material uncertainty about the company's ability to continue as a going concern.
- How bad is the revenue decline?
- Total income fell 46% year-on-year to ₹24.84 cr from ₹45.88 cr in FY25. The company also swung from a ₹2.22 cr profit to an ₹82.02 cr net loss.
- What is the NPA status, and how long has it lasted?
- PBA Infrastructure has been classified as a non-performing asset by its lenders since 2018. The company has not provided for interest on its debt since that period.
- What is the uncertain work-in-progress claim?
- The auditor flagged ₹13.07 cr in uncertified work-in-progress claims whose recovery is uncertain. The filing gives no detail on what project these claims relate to or why they remain uncertified.