Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr assets
The auditor flagged going-concern risks and multiple regulatory probes while the board approved a ₹3,000 cr capital raise.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Chaturvedi & Shah LLP issued a disclaimer of opinion on FY26 results.
- The board approved a ₹3,000 cr fundraise via QIP or FPO.
- New CEO Vijesh Babu Thota and CFO Asheesh Chaturvedi appointed.
Why this matters
A disclaimer of opinion is the most severe warning an auditor can issue. It signals that the financial statements are essentially unreliable, making the proposed ₹3,000 cr capital raise a high-stakes test of investor appetite.
What we're watching
- Outcome of ongoing probes by the ED, SEBI, and SFIO.
- Shareholder response to the ₹3,000 cr fundraise proposal.
- Going-concern status of toll-road and metro subsidiaries.
The full read
Reliance Infrastructure reported a consolidated net profit of ₹2,900 crore for FY26, but the headline is the auditor's refusal to sign off on the numbers. Chaturvedi & Shah LLP issued a disclaimer of opinion, citing an inability to verify ₹4,706 crore in economic rights. The auditor also pointed to ongoing probes by the ED, SEBI, and SFIO, and flagged going-concern risks at the company's toll-road and metro subsidiaries. Despite these warnings, the board approved a plan to raise up to ₹3,000 crore through a QIP or FPO. This proposed raise is larger than the company's current ₹2,767 crore market cap. The company also shuffled its leadership, naming Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO. The disclaimer of opinion effectively voids the reliability of the reported earnings, leaving the company's financial health in question as it seeks to raise capital from the public market.
Questions answered
- Why did the auditor issue a disclaimer of opinion?
- Chaturvedi & Shah LLP could not verify the recoverability of ₹4,706 crore in economic rights. They also cited ongoing investigations by the ED, SEBI, and SFIO, alongside going-concern risks at several subsidiaries.
- How does the proposed fundraise compare to the company's size?
- The board approved a plan to raise up to ₹3,000 crore via QIP or FPO. This amount exceeds the company's current market capitalization of ₹2,767 crore.
- What is the status of the company's leadership?
- The board appointed Vijesh Babu Thota as the new CEO and Asheesh Chaturvedi as the new CFO.
- Did the company report a profit for the year?
- Reliance Infrastructure reported a consolidated net profit of ₹2,900 crore for the year ended March 31, 2026. This figure includes significant regulatory income and exceptional items.
Story so far
All notes on RELINFRA →- Today · 8:47 PM IST Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr assets
- today Reliance Infrastructure auditor flags ₹4,706 cr in unverifiable assets
- today Reliance Infrastructure auditor issues disclaimer on ₹4,706 cr in assets