IL&FS Investment Managers Limited Releases FY 2026 Results Amid Qualified Audit Opinion

IL&FS Investment Managers Limited Releases FY 2026 Results Amid Qualified Audit Opinion​

IL&FS Investment Managers Limited announced its audited consolidated financial results for the quarter and financial year ended March 31, 2026. The Board of Directors approved the results at a meeting held on May 30, 2026.

The company's consolidated financial results show Total Revenue of 6,553.18 lakhs for the year ended March 31, 2026, compared to 4,663.97 lakhs in the previous year. Total expenses for the year reached 5,662.86 lakhs, resulting in a Profit after Tax of 468.97 lakhs. The Profit attributable to the Owners of the company stood at 386.37 lakhs.

Key Financial Results Summary​

For a detailed look at the performance, the consolidated financial statements report the following key figures (amounts are in lakhs):


The Balance Sheet summary as of March 31, 2026, and March 31, 2025, indicates the following changes in total assets:


The cash flow statement reported a Net Cash generated used in Operating Activities of 2,142.13 lakhs for the year ended March 31, 2026, compared to a net use of 889.68 lakhs in the previous year.

Auditor Qualification and Material Issues​

The independent auditor issued a qualified opinion on the consolidated financial results for the year ended March 31, 2026. The qualification highlights several areas requiring attention:

Basis for Qualified Opinion:
The auditors noted that the Group faces ongoing investigations by the Serious Fraud Investigation Office (SFIO) of the Ministry of Corporate Affairs against Infrastructure Leasing & Financial Services Limited (IL&FS) and its subsidiaries. Consequently, the auditors were unable to comment on the consequential impacts of these ongoing investigations.

Specific Qualification Concerns:
The qualified opinion was based on qualifications related to three key areas within the subsidiaries:

1. Unbilled Revenue (APUIAML): Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) has unbilled revenue balances aggregating to Rs. 1,036.61 lakhs (net of a write-off of Rs 921.02 lakhs) as of March 31, 2026. Due to a lack of adequate supporting documentation and audit evidence regarding recoverability, the auditors could not determine if adjustments were required to the carrying value of this unbilled revenue.
2. Non-Compliance Provisions (APUIAML): APUIAML did not recognize provisions for penalties arising from the non-conducting of Board Meetings in compliance with the Companies Act, 2013, and also for penalties arising from the delay in the appointment of the Chief Financial Officer.
3. Gratuity Provision (APUIAML): The subsidiary also failed to recognize a provision for gratuity for employees who resigned during the financial 2024-2025, which is required under the Payment of Gratuity Act, 1972, and Ind AS 19.

Material Uncertainties:
The auditors also highlighted two significant concerns affecting the Group's financial stability:

• Going Concern: Note 5 describes that the Holding Company did not generate fee income following the completion of extended tenures of existing funds managed by it, and several subsidiaries witnessed a significant decline in revenue. These conditions raise a material uncertainty concerning the Group's ability to continue as a going concern.
• Joint Venture Operations: Furthermore, it was noted that a joint venture consolidated in the financial results has ceased operations, and its financial statements are not prepared on a going concern basis, but on a realizable value basis.

The company issued the financial results alongside the corresponding qualified audit report.

IVC Stock Price Movement​

On Friday, IL&FS Investment Managers Limited shares edged higher to close at ₹7.77, gaining 1.44% for the session. The equity saw trading activity throughout the day, with a total volume reaching 164,567 shares.