Purple Wave profit jumps 48%, but IPO fund diversion remains a risk
The company reported a net profit of ₹13.43 crore for FY26, even as auditors flagged an unauthorized change in how IPO proceeds were spent.
— 1 earlier story on Purple Wave Infocom Ltd. →What's new
- Net profit rose 48% to ₹13.43 crore on revenues of ₹146.10 crore.
- Promoter Sandhya Singh is now CEO, moving up from whole-time director.
- Auditors confirmed a ₹12.91 crore IPO fund diversion and an ₹8.39 crore GST dispute.
Why this matters
Strong earnings growth is being overshadowed by governance failures. Diverting IPO funds without shareholder approval is a serious breach of trust that creates a permanent regulatory overhang for a nano-cap firm.
What we're watching
- The outcome of the ₹8.39 crore GST tax investigation.
- Any further regulatory action regarding the unauthorized IPO fund diversion.
- Whether the new CEO addresses the governance concerns flagged by auditors.
The full read
Purple Wave Infocom posted a 48% increase in annual net profit to ₹13.43 crore for the year ended March 31, 2026, on revenues of ₹146.10 crore. While the financial growth is clear, the audited results confirm two governance risks that weigh on the company. First, the company diverted ₹12.91 crore of IPO proceeds to a property in Gurugram, abandoning the original plan to invest in a site in Dwarka. This move was made without shareholder approval and was previously flagged by the company's monitoring agency. Second, the company is fighting an ₹8.39 crore GST demand. The board has appointed promoter Sandhya Singh as CEO, a move that consolidates leadership. However, for a nano-cap entity, the combination of an ongoing tax dispute and a history of unauthorized fund diversion creates a persistent regulatory risk that the profit growth cannot fully mask.
Questions answered
- What is the status of the IPO funds?
- The company diverted ₹12.91 crore of IPO proceeds to a property in Gurugram instead of the site in Dwarka that was originally promised. Shareholders were not consulted before this change.
- How much is the GST demand against the company?
- The company is currently contesting an ₹8.39 crore GST demand. This is noted as an emphasis of matter in the latest audit.
- Who is the new CEO?
- Promoter Sandhya Singh has been designated as the new CEO. She previously served as a whole-time director.
- What were the financial results for the year?
- Purple Wave reported a net profit of ₹13.43 crore for the year ended March 31, 2026, representing a 48% increase. Total revenue for the period reached ₹146.10 crore.
Story so far
All notes on PURPLEWAVE →- 28 May 2026 · 3:20 PM IST Purple Wave profit jumps 48%, but IPO fund diversion remains a risk
- 2d ago Purple Wave faces ₹8.39 cr GST demand over alleged tax evasion