Pervasive Commodities posts Q4 profit, but auditor flags loan risks
A quarterly profit of ₹14.72 crore masks deeper balance-sheet issues, including ₹24.59 crore in potentially unrecoverable loans and unpaid tax dues.
— 2 earlier stories on Pervasive Commodities Ltd. →What's new
- Q4 profit of ₹14.72 cr reverses a year-ago loss of ₹59.92 lakh.
- Auditor flagged ₹24.59 cr in unsecured loans with uncertain recoverability.
- Company remains behind on statutory tax payments.
Why this matters
The quarterly turnaround is overshadowed by the auditor's refusal to vouch for the recoverability of nearly ₹25 crore in loans. When a company struggles to pay statutory taxes while lending out large sums to third parties, the quality of earnings is suspect.
What we're watching
- Any clarification on the nature of the ₹24.59 cr in unsecured loans.
- Evidence of progress on clearing statutory tax arrears.
- Whether the company can sustain trading volumes without further inventory losses.
The full read
Pervasive Commodities ended FY26 with a ₹14.72 crore profit in the final quarter, a swing from the ₹59.92 lakh loss recorded in the same period last year. Revenue reached ₹32.84 crore, fueled by a rise in commodity trading. The full-year result remains a ₹4.31 lakh loss, hampered by uninsured inventory destruction earlier in the year. The profit is not the only story. The auditor has cast doubt on the balance sheet, questioning the recoverability of ₹24.59 crore in unsecured loans. The auditor also noted the company is failing to deposit statutory tax dues on time. For a nano-cap firm, these audit observations are a red flag. The company generates cash from trading, but it lends that money out to third parties while failing to meet its basic tax obligations. Treat the Q4 profit with caution.
Questions answered
- How did Pervasive Commodities perform in the final quarter?
- The company reported a net profit of ₹14.72 crore on revenue of ₹32.84 crore. This marks a reversal from the loss of ₹59.92 lakh reported in the same quarter last year.
- Why was the full-year result negative despite the strong Q4?
- The company ended the full year with a loss of ₹4.31 lakh. This was due to the destruction of perishable inventory earlier in the year that lacked insurance coverage.
- What specific concerns did the auditor raise?
- The auditor identified two issues: the recoverability of ₹24.59 crore in unsecured loans provided to various parties and persistent irregularities in depositing statutory tax dues.
- What is the status of the company's tax obligations?
- The auditor noted that the company is irregular in depositing its statutory tax dues. The filing provides no timeline for when these arrears will be cleared.
Story so far
All notes on PERVASIVE →- 27 May 2026 · 8:09 PM IST Pervasive Commodities posts Q4 profit, but auditor flags loan risks
- today Pervasive Commodities posts Q4 profit but auditor flags ₹24.59 cr in loans
- today Pervasive Commodities files routine audited FY26 results