Chavda Infra Limited announces Q1 FY2026 results; management addresses tax demand following search operation
Chavda Infra Limited released its Unaudited Standalone Financial Results for the Quarter ended June 30, 2026, alongside a Limited Review Report from an Independent Auditor. The Board of Directors approved these financial results following their meeting held on August 14, 2026.The company’s performance for the quarter was reported in line with its other periods. Total revenue stood at 8,411.72 during the quarter ending June 30, 2026. Profit before tax (PBT) for this quarter was recorded at 514.99.
Key financial data across multiple reporting periods is summarized below:
| Particulars | Quarter Ended 30.06.2026 (Unaudited) | Quarter Ended 31.03.2026 (Audited) | Quarter Ended 30.06.2025 (Unaudited) | Year ended 31.03.2026 (Audited) |
|---|---|---|---|---|
| Total Revenue | 8,411.72 | 16,871.31 | 4,646.98 | 32,203.25 |
| Expenses (Total) | 7,896.73 | 15,705.58 | 4,409.48 | 29,776.35 |
| Profit before tax | 514.99 | 1,165.73 | 237.50 | 2,426.90 |
For the quarter ended June 30, 2026, Earnings Per Share (EPS) Basic and Diluted was reported at 1.19. The weighted average number of equity shares stands at 3,26,56,000.
Accounting Changes and Tax Matters
The company noted a change in the depreciation method applied to Property, Plant and Equipment. Previously using the Written Down Value (WDV) method, Chavda Infra Limited changed its depreciation approach to the Straight-Line Method (SLM), effective from January 1, 2026. This accounting adjustment resulted in lower depreciation expense for the quarter ended June 30, 2026, and a higher profit before tax of 367.41 lakhs compared to what would have been recorded under WDV.Management addressed material issues stemming from a search and seizure operation conducted by the Income Tax Department in November 2024. Subsequent assessment orders received in March 2026 covered seven assessment years, spanning AY 2019-20 to AY 2025-26. The Assessing Officer made additions totaling Rs. 1,981.53 lakhs concerning alleged unaccounted construction receipts.
Regarding the demand raised for AY 2022-23 to AY 2025-26, which amounted to 1,693.97 lakhs, the company paid 222.58 lakhs. The firm has appealed against the outstanding tax demand of 1,471.39 lakhs across all assessment years covered by the orders.
Based on an independent professional review and internal assessment, management stated that the outstanding tax demand is not sustainable and is likely to be decided in the Company's favour by the appellate authorities. Accordingly, no provision has been recognized in the financial statements for this pending tax demand.
CHAVDA Stock Price Movement
Today, Chavda Infra Limited rallied, settling at ₹136.70 following a strong gain of 1.18%. The stock saw 8,000 shares traded in the post-market session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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