Deep Polymers FY26 results: profit up, audit caveat

Key update from the FY26 filing

Deep Polymers Limited has announced its audited standalone and consolidated financial results for the year ended March 31, 2026. The Board of Directors approved the results in a meeting held on May 30, 2026, after the meeting was rescheduled from May 27 to May 30, 2026. The headline takeaway is a strong jump in reported profit for FY26, even as revenue growth remained marginal.

At the same time, the statutory auditor issued audit reports with a modified opinion. The qualifications relate to the company not providing for trade receivables considered doubtful and not restating foreign currency monetary items as required by Ind-AS-21. This combination of profit growth alongside repeated audit qualifications is central to how investors are reading the results.

What the company reported for FY26

For FY26, Deep Polymers reported standalone revenue from operations of ₹98.72 crore. This was described as a marginal increase of 0.56% from ₹98.17 crore in FY25. Reported standalone net profit rose to ₹6.66 crore in FY26 from ₹5.17 crore in FY25, a year-on-year increase of 28.7%.

The filing also presents the same FY26 and FY25 figures in lakh terms, where FY26 revenue from operations is ₹9,872.42 lakh (₹98.72 crore) and FY25 revenue from operations is ₹9,817.16 lakh (₹98.17 crore). FY26 net profit is ₹665.59 lakh (₹6.66 crore) versus ₹517.34 lakh (₹5.17 crore) in FY25. Basic EPS for FY26 is reported at ₹7.21 compared with ₹2.11 in FY25.

Q4FY26 performance and year-on-year comparison

For the quarter ended March 31, 2026 (Q4FY26), the company reported revenue from operations of ₹2,655.49 lakh (₹26.55 crore), compared with ₹2,299.99 lakh (₹23.00 crore) in Q4FY25. The same disclosure notes this as a 15.46% increase year-on-year. Q4FY26 net profit is ₹263.72 lakh (₹2.64 crore), up from ₹39.19 lakh (₹0.39 crore) in Q4FY25.

The article also cites quarterly net profit as ₹2.76 crore for March 2026 versus ₹0.39 crore for March 2025, along with EBITDA of ₹6.87 crore for March 2026 versus ₹4.33 crore for March 2025. Basic EPS for the quarter is shown at ₹5.55 in the summary table, while another line states EPS increased to ₹5.60 in March 2026 from ₹0.14 in March 2025. Taken together, the quarter shows a sharp year-on-year improvement in profitability.

Auditor’s modified opinion and what triggered it

The auditor, M/s. S. N Shah & Associates, issued audit reports with a modified opinion on the audited standalone and consolidated financial results. The report qualifies its opinion primarily on two accounting matters.

First, it cites non-provision of doubtful debts of ₹308.06 lakh (₹3.08 crore). This relates to trade receivables that were deemed doubtful, but for which a provision was not made in the accounts. Second, the auditor flagged non-restatement of foreign currency denominated financial items, stating that foreign currency monetary items were not restated as per Ind-AS-21.

The article notes this is the fifth consecutive time the auditors have raised concerns. That history matters because repeat qualifications often shape how investors evaluate the reliability of reported earnings.

Reported profit vs adjusted profit indicated in the note

A key detail in the disclosure is the potential impact if the audit concerns were addressed through adjustments. The article states that if the auditor’s concerns were considered, the adjusted standalone net profit for FY26 would be ₹3.58 crore. This is substantially lower than the reported standalone net profit of ₹6.66 crore for FY26.

The disclosure also provides both reported and adjusted EPS figures for FY26. Reported basic EPS (FY26) is shown as ₹7.21, while adjusted basic EPS (FY26) is indicated as ₹5.94. These figures frame the central issue: reported profitability improved, but the quality of earnings is being questioned due to specific accounting treatments.

Market data points mentioned alongside the results

The article includes two market snapshots. Deep Polymers shares are stated to have closed at ₹39.25 on June 08, 2026 (BSE). A separate market line shows ₹39.09 with a one-day move of -2.62%, a 5-day change of +6.22%, and a 1st Jan change of -0.66%.

These price points are presented as context rather than a direct reaction to the filing, but they indicate the stock was trading around the ₹39 level during early June 2026.

Historical revenue and profit series shown

The article contains quarterly and yearly series tables for revenue and net profit/loss. The quarterly revenue sequence shown is ₹26.55 crore, ₹21.02 crore, ₹25.75 crore, ₹25.40 crore, and ₹23.00 crore. The quarterly net profit/loss sequence shown is ₹2.64 crore, ₹6.22 crore, ₹1.75 crore, ₹1.44 crore, and ₹0.39 crore.

It also shows a yearly revenue series of ₹103.42 crore, ₹100.91 crore, ₹107.38 crore, ₹122.41 crore, ₹139.28 crore, and ₹40.30 crore, and a yearly net profit/loss series of ₹12.04 crore, ₹5.17 crore, ₹7.12 crore, ₹9.30 crore, ₹11.11 crore, and ₹1.82 crore. Separately, the article states that for the full year FY2026–2027, revenue reached ₹103.42 crore and profit touched ₹12.04 crore.

Snapshot table: FY26 and Q4FY26 headline numbers

What investors are likely to track next

The disclosure itself highlights what to watch: the company’s actions to recover the ₹3.08 crore in doubtful trade receivables. Because the audit qualification is tied to provisioning, progress on recoveries or a change in provisioning approach could affect future reported profitability.

Another watch item is whether the company changes its treatment of foreign currency monetary items to align with Ind-AS-21 restatement requirements. With the auditor having issued a modified opinion and the article noting repeated qualifications, future audit outcomes and accounting adjustments remain a key part of the investment narrative.

Bottom line

Deep Polymers reported a strong year-on-year increase in FY26 net profit on nearly flat revenue growth, and Q4FY26 showed a sharp profit improvement versus Q4FY25. But the modified audit opinion, centred on ₹3.08 crore of doubtful receivables and Ind-AS-21 restatement, adds a clear caution flag. The next updates investors will look for are any disclosures on receivable recoveries and changes in accounting treatment in subsequent financial statements.