HMT Limited releases financial results: Consolidated income reflects significant losses amid operating challenges

HMT Limited releases financial results: Consolidated income reflects significant losses amid operating challenges​

HMT Limited has announced its Standalone and Consolidated Audited Financial Results for the quarter and financial year ended March 31, 2026. The results detail the company's performance across various segments, alongside a qualified opinion from auditors GRSM & ASSOCIATES regarding both the standalone and consolidated statements.

The company released its financial data, which includes detailed breakdowns of operational income and expenses, along with key indicators of the group’s financial stability and segment performance for the reporting periods.

Financial Performance Highlights​

Standalone Results:
For the quarter ended March 31, 2026, the company reported revenue from operations at 802 lakh. The total income stood at 1,259 lakh. Total expenses were recorded at 2,228 lakh. For the financial year ending March 31, 2026, the consolidated turnover reached 2,596 lakh against 2,617 lakh in the previous financial year. The profit before tax for the full FY2026 was reported at 1,838 lakh.

Consolidated Results:
The Group’s overall financial performance saw total income from continuing operations reach 8,576 lakh for the quarter ending March 31, 2026. For the full financial year ended March 31, 2026, consolidated revenue stood at 14,265 lakh, compared to 14,231 lakh in the previous fiscal year. The Group reported a net profit/loss before tax of (12,894) lakh for FY2026 and (14,006) lakh for FY2025.

Financial Position and Key Segments​

The Standalone Balance Sheet as of March 31, 2026, showed Total Assets at 136,010 lakh. Equity stood at 49,167 lakh, against total liabilities of 86,843 lakh.

In terms of segment operations in the consolidated view, HMT Limited reported results across several segments, including Food Processing Machinery (FPM), Machine Tools (MT), Projects, and Others (including Watch Assembly). The Total Equity and Liabilities stood at 53,563 lakh for the quarter ended March 31, 2026.

Auditor’s Qualified Opinions​

GRSM & ASSOCIATES issued a qualified opinion on both the Standalone and Consolidated Financial Results. Several material concerns were highlighted by the auditors:

Standalone Audit Qualifications:
The audit identified qualifications primarily related to inventory valuation at different units (Aurangabad and Bengaluru). In addition, concerns were raised regarding the lack of adequate supporting evidence for certain transactions, including the valuation of inventories in Bengaluru due to inconsistency with company policy. Furthermore, the reports highlighted that no allowance had been made for expected credit losses (ECL) regarding an outstanding receivable from a subsidiary due to the subsidiary's negative net worth and continued losses.

Consolidated Audit Qualifications:
The consolidated audit report also issued a qualified opinion, citing common group-level issues across various components of the Group:

• Expected Credit Loss Model (ECL): The Group has not prepared an ECL matrix or conducted the necessary impairment assessment under Ind AS 109.
• Lack of External Confirmations: The Group failed to obtain external confirmations for trade receivables, other current assets, and other current liabilities.
• Inventories Valuation: At multiple locations, inventories were not valued strictly according to the Group's stated accounting policy, compounded by inadequate physical verifications.
• Unreconciled GST ITC: Most units are in the process of reconciling input tax credit recorded in books with balances available on the GST portal; adjustments for reversals or corrections, if any, are yet to be accounted for.

The management has responded to these audit observations, noting that certain operational constraints have led to delays and limitations in fulfilling all reporting requirements across various units, particularly regarding payment of statutory dues and completion of reconciliations.

HMT Stock Price Movement​

HMT Limited slips down by 2.29%, shedding ₹1.37 to trade at ₹58.51 as of 2:56 PM in live trading. The stock traded today within a range, hitting an intraday low of ₹58.51 and peaking earlier at ₹60.99.