Reliance Infrastructure auditor refuses to sign off on FY26 results
Auditor Chaturvedi & Shah LLP cited unverified assets of ₹4,706 crore and ongoing investigations. Separately, the board proposed a ₹3,000 crore capital raise.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Auditor issued a disclaimer of opinion on FY26 consolidated results.
- Ongoing probes by ED, SEBI, and SFIO cited as primary risks.
- Board approved a plan to raise ₹3,000 crore via QIP or FPO.
Why this matters
A disclaimer of opinion is the most severe report an auditor can issue, meaning they cannot vouch for the company's financial health. The proposed fundraise exceeds the company's current market capitalization of ₹2,767 crore, signaling a potential for extreme equity dilution.
What we're watching
- Shareholder response to the proposed ₹3,000 crore dilution.
- Updates on the ongoing ED, SEBI, and SFIO regulatory investigations.
- Clarification on the recoverability of the flagged economic rights.
The full read
Reliance Infrastructure reported an audited consolidated net profit of ₹2,900 crore for the fiscal year ended March 31, 2026. However, the headline figure is secondary to the auditor's report. Chaturvedi & Shah LLP issued a disclaimer of opinion, the most damaging outcome for a balance sheet, citing its inability to verify ₹4,706 crore in economic rights. The auditor also pointed to ongoing investigations by the ED, SEBI, and SFIO, alongside going-concern risks at multiple toll-road and metro subsidiaries. Compounding this, the board moved to raise ₹3,000 crore through a QIP or FPO. With the company's market capitalization at ₹2,767 crore, this capital raise would effectively double or dilute the existing equity base. The board also appointed a new CEO and CFO. The combination of an auditor who refuses to certify the financials and a planned fundraise that exceeds the company's entire market value creates a high-stakes scenario for shareholders.
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 unresolved regulatory probes and going-concern risks at several subsidiaries.
- How large is the proposed fundraise?
- The board approved raising up to ₹3,000 crore via QIP or FPO. This amount is larger than the company's reported market capitalization of ₹2,767 crore.
- Which regulatory bodies are investigating the company?
- The auditor noted ongoing probes by the ED, SEBI, and SFIO.
- What is the status of the company's management?
- The board appointed a new CEO and a new CFO as part of the meeting outcomes.
Story so far
All notes on RELINFRA →- 23 May 2026 · 8:39 PM IST Reliance Infrastructure auditor refuses to sign off on FY26 results
- 3d ago Reliance Infrastructure auditor refuses to sign off on ₹4,706 cr
- 3d ago Reliance Infrastructure reports ₹2,900 cr profit despite auditor disclaimer