Avio Smart Market Stack says RBI approval remains pending

Avio Smart Market Stack Limited reported standalone net profit of Rs 68.86 lakh for the quarter ended 30 September 2026, while its limited-review report said certain foreign-currency accounting entries require Reserve Bank of India approval and management is still reconciling specified legacy balances. The auditor’s review conclusion was unmodified.

Which balances is Avio Smart Market Stack still reconciling?

Avio Smart Market Stack is reconciling recorded balances involving certain debtors, bank balances, bank deposits, other deposits and receivables from government authorities as at 30 September 2026. SVRL & Co. drew attention to the matter in its 14 November 2026 limited-review report and said some of these balances had been impaired during implementation of the Resolution Plan.

Management is identifying and engaging with counterparties and regulatory authorities to reconcile discrepancies, if any, in the balances. The filing does not disclose the amount of balances under reconciliation, the value impaired, or a completion date for the exercise, so the reported standalone balance-sheet total of Rs 62.55 crore at 30 September 2026 does not isolate the affected items.

Avio Smart Market Stack has also filed a writ petition in the High Court of Telangana seeking to quash certain demands relating to earlier financial years. The announcement does not specify the value of those demands, their connection with individual receivable balances, or the date of any court hearing.

The auditor stated that its conclusion was not modified in respect of the balance-reconciliation matters. An emphasis-of-matter paragraph draws attention to matters presented in the financial results; the review report nevertheless said nothing had come to the auditor’s attention indicating that the standalone statement lacked the disclosures required by Regulation 33 of the SEBI Listing Regulations or contained a material misstatement.

Why do Avio Smart Market Stack's foreign-currency entries need RBI approval?

Avio Smart Market Stack’s management wrote off and wrote back certain foreign-currency assets and liabilities during implementation of the Resolution Plan, and the auditor said those entries require relevant approval from the Reserve Bank of India, or RBI. Management represented that it is making suitable representations and filings with the regulatory authority, rather than stating that approval had been received by 14 November 2026.

The company did not disclose the amount of foreign-currency assets or liabilities affected by the write-offs and write-backs. It also gave no expected date for RBI regularisation, leaving the underlying accounting entries and the regulatory process unresolved in the 30 September 2026 standalone financial results.

The accounting disclosures are tied to the change in control following the Resolution Plan. Avio Smart Market Stack said its current promoters and management took control on 28 March 2023, and the auditor framed the foreign-currency entries as part of the plan’s implementation and impairment assessment of certain financial assets and liabilities.

SVRL & Co. conducted its review under Standard on Review Engagements 2410, which the report says is narrower than an audit and provides moderate assurance through inquiries, analytical procedures and other review procedures. The firm did not issue an audit opinion and did not modify its review conclusion over the RBI-related matter.

What is happening to Avio Smart Market Stack's foreign subsidiaries?

Avio Smart Market Stack said its foreign subsidiaries are non-functional and that current management does not have control over them. The company said it had written off investments in these entities in previous years, after the current promoters and management assumed control on 28 March 2023.

Management said the earlier investment write-offs did not adversely affect the financial statements because there were no operations in the foreign subsidiaries. The 14 November 2026 notes do not name the subsidiaries, disclose the value of investments written off, or identify the jurisdictions in which the entities are to be closed.

Avio Smart Market Stack said it is regularising compliance relating to the foreign subsidiaries and pursuing their closure under the applicable legal framework in the relevant jurisdictions. This is a management plan rather than a completed closure process, and the filing does not provide a timetable or list any approvals needed for the closures.

The foreign-subsidiary disclosure is separate from the company’s Singapore branch, incorporated on 27 March 2025. The auditor said the branch’s financial information for the quarter ended 30 September 2026 was included in the standalone results based on management representations and was not reviewed by SVRL & Co. or another auditor.

What do the September-quarter results show?

Avio Smart Market Stack reported standalone revenue from operations of Rs 12.9281 crore for the quarter ended 30 September 2026, up from Rs 12.3967 crore in the quarter ended 30 September 2025. However, standalone net profit declined to Rs 68.86 lakh from Rs 1.0051 crore a year earlier and from Rs 1.5051 crore in the preceding quarter ended 30 June 2026.

Total income was Rs 14.0487 crore in the September 2026 quarter, compared with Rs 12.7152 crore a year earlier, while total expenses were Rs 13.0065 crore against Rs 11.7109 crore. Profit before tax increased to Rs 1.0422 crore from Rs 1.0043 crore, but tax charges and previous-period tax effects resulted in the lower reported net profit.

Financial Inclusion & Digital Services contributed Rs 11.8799 crore of September-quarter segment revenue, compared with Rs 11.4943 crore in the year-earlier quarter. Agri Supply Chain & Technologies generated Rs 90.96 lakh, increasing from Rs 16.96 lakh, while Diagnostics & Healthcare recorded Rs 13.87 lakh, down from Rs 90.24 lakh.

The September-quarter tax line included Rs 89.81635 lakh of interest on an income-tax refund and an additional Rs 11.00613 lakh provision for income tax relating to earlier years. These entries followed Income Tax Department assessment orders and management’s assessment of recoverability for advance-tax and tax-deducted-at-source receivables.

What remains unresolved in Avio Smart Market Stack's tax and review disclosures?

Avio Smart Market Stack said Assessment Year 2020-21 remains pending before the appropriate authorities, and related balances remain in the books as at 30 September 2026. Management said it continues to evaluate the potential outcome and consequential impact on the financial results, without quantifying the retained balances.

The auditor’s other matters also covered the Singapore branch and, in the consolidated review, the company’s associate. The consolidated results included Avio Smart Market Stack’s share of net loss, including other comprehensive loss, of Rs 31.1788992 lakh for the September 2026 quarter from the associate, based on interim information not reviewed by the auditor or the associate’s auditor.

The standalone report, which covers the Rs 68.86 lakh quarterly profit, retained an unmodified conclusion despite its emphasis-of-matter and other-matter paragraphs. That conclusion does not state that balance reconciliation, RBI approval, the tax assessment or subsidiary closures have been completed; it addresses the auditor’s limited-review conclusion on the financial statement presentation.

The board approved the unaudited standalone and consolidated financial results on 14 November 2026. The company described the trading window as closed from 1 October 2026 because its rights issue process remains ongoing, following board approval of the proposed rights issue on 23 October 2026.

Conclusion

The September 2026 filing combines higher standalone revenue of Rs 12.9281 crore with a lower net profit of Rs 68.86 lakh and several matters that remain under management action. These include reconciliation of specified balances, RBI regularisation for foreign-currency accounting entries, a pending tax assessment and compliance work to close foreign subsidiaries described as non-functional and beyond current management’s control.

Investors can watch for progress on management’s RBI representations and filings, engagement with counterparties and authorities on balance reconciliation, and the Telangana High Court writ petition. The company also said its rights issue process remained ongoing on 14 November 2026, and its trading window will reopen only after relevant unpublished price-sensitive information becomes generally available and at least 48 hours have elapsed.