Maxgrow India Reports Consolidated Financial Results for FY2026; Audit Notes Focus on ECL Assessment and Internal Controls

Maxgrow India Reports Consolidated Financial Results for FY2026; Audit Notes Focus on ECL Assessment and Internal Controls​

Mumbai: Maxgrow India Limited has released its consolidated financial results for the financial year ended March 31, 2026. The company’s performance reflects a significant scale in certain operational areas, while the accompanying independent auditor's report highlights key audit matters related to asset impairment and internal controls during the period.

The Consolidated Statement of Profit and Loss shows that Total Revenue for the fiscal year ended March 31, 2026, stood at 2,187,240.82 Lakhs, compared to 269,334.47 Lakhs in the previous year. The company reported a Profit for the year of 45,027.74 Lakhs.

Financial Position Snapshot​

As per the Consolidated Balance Sheet as at March 31, 2026, Total Assets amounted to 288,349.86 Lakhs, compared to 210,509.06 Lakhs in the prior year. The company’s Equity and Liabilities totaled 296,559.10 Lakhs against total assets.

Key financial figures from the balance sheet include:

• Total Current Assets: 1.11 Lakhs.
• Cash and Cash Equivalents: 896.93 Lakhs (up from 757.08 Lakhs in March 2025).
• Non-Current Assets: Includes Financial Assets amounting to 493.34 Lakhs.

The company maintained a Net Debt of (743.91) Lakhs, resulting in a Gearing Ratio of (0.0036), down from 0.1078 in the previous year, based on capital of 207,226.38 Lakhs.

Audit and Key Operational Matters​

The audit provided a Qualified Opinion, with several aspects deemed significant for review.

A key audit matter focused on Expected Credit Loss (ECL) assessment, as certain financial assets were recognized following the implementation phase of the Corporate Insolvency Resolution Process (CIRP). Management had assessed that these assets could not be recovered during CIRP, leading to a full impairment provision, which was considered of most significance by the auditors.

The audit also noted several areas requiring attention:

• Investment in OCDs: The company acquired rights in 75,93,900 Optionally Convertible Debentures (OCDs) of Ultravolt Power Private Limited for an aggregate consideration of 775.10 lakhs. However, the auditors reported being unable to obtain sufficient appropriate audit evidence regarding the fair value or recoverable amount of these investments, leading to a qualification in the report.
• Internal Controls: The audit found that the company had not appointed a full-time Company Secretary or Internal Auditors throughout the year, a delay attributed by management to the implementation of the CIRP plan.
• Receivables and Penalties: Attention was drawn to the penalties imposed by Stock Exchanges for certain listing related non-compliances. Furthermore, the audit noted that accounts receivable and loans and advances receivable amounting to 76.14 crore were overdue for a period exceeding ninety days, which management provided for in the books of accounts.

Investment and Asset Details​

The company’s investments included Equity Investments at FVOCI, while Debt Investments consisted of 75.10 Lakhs in OCDs of Ultravolt Power Private Limited. The financial statements also detailed corporate guarantees from Ushdev Windpark Private Limited and Hurricane Windfarm Private Limited aggregating to a maximum exposure of 271.46 crore.

The Balance Sheet details showed trade receivables of 287,451.83 Lakhs as of March 31, 2026. Notes indicated that the company did not have any inventory and no financial institution sanctions were in excess of five crore rupees for working capital.

Financial Performance Summary (FY2026 vs FY2025)​

A summary of key performance indicators is provided below:

Management and Governance Notes​

The company's notes indicated that it is currently under implementation of a Resolution Plan approved by the NCLT. It was reported that the company canceled 3,54,52,338 equity shares held by public shareholders who individually held more than 1,000 shares, and issued 3,90,73,325 new equity shares to the Resolution Applicant.

The management also noted receipt of a waiver from certain lenders on April 24, 2026 for unsecured loans pertaining to the financial year ended March 31, 2026, aggregating Rs 6.62 Lakhs. This event was considered non-adjusting and would be recognized in subsequent financial statements.

Stock Price Movement​

As of 12:54, Maxgrow India Ltd. is surging in the market, trading at ₹83.93 after a strong run that posts a 4.99% gain. The stock has seen significant intraday movement, having fluctuated between a low of ₹75.95 and reaching its current high of ₹83.93.