Shantiguru Industries swings to profit on land sale and asset gains
The nano-cap firm reported a net profit of ₹11.23 crore for FY26, a sharp reversal from last year's loss, though operations remain minimal.
What's new
- Shantiguru turned a ₹11.23 cr profit in FY26, up from a ₹0.16 cr loss in FY25.
- Profitability relied on a ₹4.32 cr land sale and ₹10.12 cr in fair valuation gains.
- Revenue from operations was just ₹0.23 cr for the year.
Why this matters
The profit is entirely artificial. With operational revenue of only ₹0.23 crore, the company's bottom line is currently a function of asset divestment and accounting adjustments rather than a viable business model.
What we're watching
- Whether the company can generate meaningful revenue from operations in FY27.
- Further details on the equity investments driving the valuation gains.
- Any plans for the cash generated from the land sale.
The full read
Shantiguru Industries posted a net profit of ₹11.23 crore for the year ended March 2026, a stark reversal from the ₹0.16 crore loss recorded in FY25. For a company with a market capitalization of just ₹10 crore, the swing is large. However, the profit is not operational. The company generated only ₹0.23 crore in revenue from operations during the year. Instead, the bottom line was propped up by ₹4.32 crore from a land sale and ₹10.12 crore in fair valuation gains on equity investments. Total income for the year hit ₹15.08 crore, but the reliance on one-off asset sales and accounting adjustments leaves the underlying business model unproven. The board also appointed new internal and secretarial auditors for the upcoming year. The numbers show a company surviving on asset liquidation rather than commercial activity.
Questions answered
- How did Shantiguru Industries swing from a loss to a profit?
- The company reported a net profit of ₹11.23 crore for FY26, compared to a loss of ₹0.16 crore in FY25. This turnaround was driven by ₹4.32 crore from a land sale and ₹10.12 crore in fair valuation gains on equity investments.
- What was the company's actual revenue from operations?
- Revenue from operations for the year was ₹0.23 crore. The total income reached ₹15.08 crore only when accounting for the land sale and investment gains.
- What is the scale of the company?
- Shantiguru is a nano-cap company with a market capitalization of approximately ₹10 crore.
- Did the board announce any other changes?
- The board appointed internal and secretarial auditors for the current financial year.