Board approves Q2 results, higher related party transactions with Authum; postal ballot for special resolution
Board meeting held on November 03, 2026 approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026.
By ScoutQuest · · 4 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 15,576.83 | 10,770.07 | +44.6% | 11,601.45 | +34.3% |
| Total income | 15,801.64 | 11,119.68 | +42.1% | 11,850.79 | +33.3% |
| Profit before tax | (617.31) | 94.10 | — | (1,032.81) | +40.2% |
| Profit after tax | (617.46) | 94.10 | — | (1,032.97) | +40.2% |
| Total comprehensive income | (700.61) | 38.54 | — | (1,030.07) | +32% |
| Basic EPS | (0.24) | 0.04 | — | (0.43) | +44.2% |
- Total income YoY growth
- +42.1%
- Period
- 30.09.2026 (Unaudited)
Also decided at the meeting
- Approved, subject to shareholder approval, the subsequent increase in material related party transactions with Authum Investments & Infrastructure Limited for one year from Members' approval.
- Approved the Notice of Postal Ballot (special resolution) for the Authum RPT increase; e-voting via NSDL, cut-off date Tuesday, November 17, 2026.
Auditor's review
Conclusion: Unmodified
- EoM: Alibaug JDA (Note 3) - income of Rs. 5,842.00 lakhs recognised as interest free adjustable advance; IFAA of Rs. 1,778.00 lakhs received, balance expected in FY 2026-27.
- EoM: ADGFT penalty of Rs. 17,000.00 lakhs confirmed by Appellate bench of DGFT; no provision made, management has legal opinion that order is bad in law (Note 6).
- EoM: Kanjurmarg property (Note 7) - advance of Rs. 14,300.00 lakhs received; conveyance of 75% executed after quarter end, sale not recognised in the quarter.
- EoM: ESOP expense of Rs. 1,123.95 lakhs (Note 4); Thane MIDC leasehold assignment (Note 8); certain balances subject to confirmation (Note 9).
Board meeting outcome
The board of the company met on Tuesday, November 03, 2026, from 12:30 P.M. to 2:00 P.M. It considered and approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026 (Q2). The results were first reviewed by the audit committee and then approved and taken on record by the board.
Related party transaction and postal ballot
- The board approved a subsequent increase in material related party transactions with M/s. Authum Investments & Infrastructure Limited, a related party, for a period of one year from the date of approval by the members.
- This is subject to the approval of the shareholders.
- The board also approved the notice of a postal ballot seeking shareholder approval by way of a special resolution on this increase.
- Voting will be through the remote e-voting facility provided by National Securities Depository Limited. The cut-off date for reckoning members for sending the notice electronically and for e-voting is Tuesday, November 17, 2026.
What the auditor said
M/s. M M Nissim & Co LLP, the statutory auditors, issued a limited review report on both the standalone and consolidated results. A review gives moderate assurance and is not an audit, so no audit opinion is expressed. Their conclusion is not modified: nothing came to their attention that causes them to believe the statement contains any material misstatement.
Emphasis of matters
The auditors drew attention to certain matters, and their opinion is not modified in respect of any of them:
- Alibaug joint development: income of Rs. 5,842.00 lakhs was recognised in the June quarter under the Joint Development Agreement for plotted development of land at Alibaug, representing an interest free adjustable advance towards signing the agreement. IFAA of Rs. 1,778.00 lakhs has been received and the balance is expected in FY 2026-27.
- ESOPs: 9,88,000 stock options were granted on 13 August 2024 at an exercise price of Rs. 25 per option, vesting 50% after one year and 50% after two years. Fair value was determined at Rs. 113.76 per option, and an ESOP expense of Rs. 1,123.95 lakhs has been recognised for the vesting period from August 2024 to August 2026.
- Penalty: a penalty of Rs. 17,000.00 lakhs levied by the Additional Director General Foreign Trade was confirmed by the Appellate bench of DGFT, New Delhi. No provision for the demand is made in the books; management has a legal opinion that the order is bad in law.
- Kanjurmarg property: shareholders had approved the sale of the Kanjurmarg property, held as inventory, and an advance of Rs. 14,300.00 lakhs was received from the buyer. After the quarter end, a deed of conveyance was executed for 75% of the land parcel, admeasuring 12,193.13 square metres, for Rs. 14,300.00 lakhs, and an agreement for sale for the remaining 25%, admeasuring 4,067.37 square metres, against non-monetary consideration of 1,00,000 square feet of RERA carpet area, car parking spaces and the right to use 8,500 square feet of basement area. As both documents were executed after the quarter, the sale is not recognised in these results.
- MIDC Thane: leasehold rights in land at Village Panchpakhadi were assigned for a monetary consideration of Rs. 11 lakhs and a non-monetary consideration of constructed carpet area of 7,459.2 sq. metres or 25% of FSI, whichever is higher. Revenue will be recognised on fulfilment of conditions, including allotment of area.
- Certain bank balances, other current assets and liabilities are subject to confirmation and are reported as per the books of accounts.
Subsidiaries in the consolidated numbers
The consolidated statement covers three subsidiaries, fourteen step down subsidiaries and one limited liability partnership. Their interim results, not reviewed by auditors, reflect total revenue of Rs. 53.93 lakhs and Rs. 105.80 Lakhs, and total net loss after tax of Rs. 157.70 lakhs and Rs. 265.54 Lakhs, for the quarter and half year ended September 30, 2026. Management states these are not material to the group.
What it means for investors
- The meeting was largely a results-and-approvals meeting: the quarterly numbers, a larger envelope for transactions with a related party, and a shareholder vote to be held by postal ballot.
- The review conclusion carries no modification, but the emphasis items matter: a large penalty confirmed on appeal and not provided for in the books, and property-linked income and sale proceeds that will be recognised in later periods.
- The increase in related party transactions will take effect only with shareholder approval through the postal ballot.
Also from Nitco
Board meeting on November 03, 2026 to consider and approve Q2 unaudited results
27 Oct 2026
Conveyance deed registered for 75% of Kanjurmarg land; INR 143 crores consideration received
14 Oct 2026
More numbers
- ADGFT penalty confirmed by Appellate bench of DGFTRs. 17,000.00 lakhs
- Income recognised under Alibaug JDARs. 5,842.00 lakhs
- IFAA received towards JDARs. 1,778.00 lakhs
- ESOP expense recognisedRs. 1,123.95 lakhs
- Stock options granted to employees9,88,000 stock options
- Exercise price per stock optionRs. 25 per option
- Fair value per stock optionRs. 113.76
- Kanjurmarg property monetary considerationRs. 14,300.00 lakhs
- Total income, latest quarter15,801.64 (Rs. in Lakhs)
- Total income, year-ago quarter11,119.68 (Rs. in Lakhs)
- Total income, previous quarter11,850.79 (Rs. in Lakhs)
- Total comprehensive income, latest quarter(700.61) (Rs. in Lakhs)
- Total comprehensive income, year-ago quarter38.54 (Rs. in Lakhs)
- Total comprehensive income, previous quarter(1,030.07) (Rs. in Lakhs)
- Profit after tax, latest quarter(617.46) (Rs. in Lakhs)
- Profit after tax, year-ago quarter94.10 (Rs. in Lakhs)
- Profit after tax, previous quarter(1,032.97) (Rs. in Lakhs)
- Revenue from operations, latest quarter15,576.83 (Rs. in Lakhs)
- Revenue from operations, year-ago quarter10,770.07 (Rs. in Lakhs)
- Revenue from operations, previous quarter11,601.45 (Rs. in Lakhs)
- Profit before tax, latest quarter(617.31) (Rs. in Lakhs)
- Profit before tax, year-ago quarter94.10 (Rs. in Lakhs)
- Profit before tax, previous quarter(1,032.81) (Rs. in Lakhs)
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