PBA Infrastructure swings to ₹82 cr loss; auditor flags going-concern doubt
The auditor cited ₹214.59 cr in defaulted bank loans and SARFAESI proceedings. PBA has been an NPA since 2018.
What's new
- PBA swung to an ₹82.02 cr net loss in FY26 on total income of ₹24.84 cr, down from ₹45.88 cr a year earlier.
- Auditor N.K. Mittal & Associates issued a qualified opinion, flagging ₹214.59 cr in defaulted loans and ongoing SARFAESI proceedings.
- The company has been classified as an NPA since 2018 and has not provided for interest since then.
Why this matters
This is a civil construction company that has been a non-performing asset for eight years, stopped servicing debt in 2018, and just reported a loss nearly 40 times its prior-year profit. The auditor's qualified opinion, with a specific material-uncertainty clause on the going concern, puts survival in plain doubt.
What we're watching
- Whether lenders accelerate SARFAESI action following the qualified audit.
- Recovery outcome on the ₹13.07 cr uncertified work-in-progress claims.
- Any restructuring or resolution plan to address the ₹214.59 cr in defaulted loans.
The full read
PBA Infrastructure swung to an ₹82.02 crore loss in FY26. Revenue fell 46% to ₹24.84 crore from ₹45.88 crore a year prior. The auditor, N.K. Mittal & Associates, issued a qualified opinion. It cited ₹214.59 crore in defaulted bank loans under SARFAESI proceedings, the company's NPA classification since 2018, and the absence of any interest provision since then. It also flagged ₹13.07 crore in uncertified work-in-progress claims with uncertain recovery. The auditor explicitly raised material uncertainty about PBA's ability to continue as a going concern. This is a nano-cap construction company that has been a non-performing asset for eight years. The qualified audit does not merely note problems. It questions whether the entity can survive.
Questions answered
- Why did the auditor qualify the financial statements?
- N.K. Mittal & Associates flagged three core issues: ₹214.59 crore in defaulted bank loans subject to SARFAESI proceedings, the company's NPA status since 2018 with no interest provision since then, and ₹13.07 crore in uncertified work-in-progress claims of uncertain recoverability. These raised material uncertainty about PBA's ability to continue as a going concern.
- How did revenue and profit move year-on-year?
- Total income dropped to ₹24.84 crore from ₹45.88 crore a year earlier. PBA posted a net loss of ₹82.02 crore, swinging from a net profit of ₹2.22 crore in FY25.
- What is the scale of the debt problem?
- PBA has defaulted on bank loans totalling ₹214.59 crore. Lenders have classified the company as a non-performing asset since 2018, and PBA has not provisioned for interest on those loans since that time. The loans are under SARFAESI proceedings.
- What does the going-concern qualification mean for shareholders?
- It means the auditor believes there is significant doubt about whether PBA can remain in business without material changes to its operations or financial support. For a nano-cap company already under SARFAESI action and eight years into NPA status, this is the most serious warning an audit can issue.