Reliance Infrastructure reports ₹2,900 cr profit despite auditor disclaimer
Auditors at Chaturvedi & Shah LLP have refused to provide an opinion on the firm's FY26 results, citing billions in unverifiable assets and ongoing regulatory probes.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Auditor issued a disclaimer of opinion on FY26 results.
- Company seeks board approval to raise ₹3,000 cr via QIP or FPO.
- Board appointed Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO.
Why this matters
A disclaimer of opinion is the most severe warning an auditor can issue. It suggests the financial statements may not reflect reality, especially given that the auditor cannot verify ₹4,706 crore of economic rights. The company's plan to raise ₹3,000 crore, which exceeds its total market capitalization, introduces significant dilution risk for existing shareholders.
What we're watching
- Updates on the ongoing ED, SEBI, and SFIO investigations.
- Shareholder response to the proposed massive capital raise.
- Whether the new management team addresses the going-concern risks.
The full read
Reliance Infrastructure posted a consolidated net profit of ₹2,900 crore for FY26, but the headline figure is obscured by a damning report from auditor Chaturvedi & Shah LLP. The auditor issued a disclaimer of opinion, stating it could not verify ₹4,706 crore in economic rights on the balance sheet.
Regulatory trouble is here.
That lack of visibility, compounded by active investigations from the ED, SEBI, and SFIO, has pushed the auditor to flag going-concern risks at several toll-road and metro subsidiaries. In the face of this deepening uncertainty, the company now plans to raise ₹3,000 crore via QIP or FPO. This capital call is aggressive, as it is larger than the firm's total market cap of ₹2,767 crore. Meanwhile, the company replaced its leadership, installing Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO. The next test is whether shareholders greenlight this massive dilution in the middle of a regulatory crisis that the auditor has effectively refused to audit.
Questions answered
- What is the primary concern raised by the auditor?
- The auditor, Chaturvedi & Shah LLP, issued a disclaimer because it could not verify the recoverability of ₹4,706 crore in economic rights. It also cited ongoing regulatory probes and going-concern risks at various subsidiaries.
- How large is the proposed capital raise?
- The board approved a plan to raise up to ₹3,000 crore through a QIP or FPO. This is significant because it exceeds the company's market capitalization of ₹2,767 crore.
- Which agencies are currently investigating the firm?
- The filing notes ongoing investigations by the ED, SEBI, and the SFIO. These probes were a key factor in the auditor's refusal to provide an opinion.
- Who are the new executives taking charge?
- The board has appointed Vijesh Babu Thota as the new CEO and Asheesh Chaturvedi as the new CFO.
Story so far
All notes on RELINFRA →- 23 May 2026 · 8:47 PM IST Reliance Infrastructure reports ₹2,900 cr profit despite auditor disclaimer
- 3d ago Reliance Infrastructure auditor refuses to sign off on ₹4,706 cr
- 3d ago Reliance Infrastructure auditor refuses to sign off on FY26 results