FX Multitech Restates FY26 Profit and March 2026 Net Worth

FX Multitech Limited restated consolidated profit after tax for the year ended March 31, 2026 at Rs 11.8025 crore, Rs 18.55 lakh below the audited Rs 11.988 crore. Restated net worth at March 31, 2026 was Rs 38.063 crore, Rs 3.70 lakh above the audited figure after tax, depreciation and acquisition-related adjustments.

Why did FX Multitech restate FY26 profit and net worth?

FX Multitech restated its consolidated financial information for inclusion in the offer document for its proposed small and medium enterprises initial public offering, or SME IPO. The restated summary statements for the years ended March 31, 2026 and March 31, 2025 were compiled from audited financial statements approved by the board and recast under Schedule III of the Companies Act, 2013.

FX Multitech prepared the statements under Indian generally accepted accounting principles, or Indian GAAP, on an accrual basis and historical-cost convention. The stated framework also includes the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations, 2018, and the Guidance Note on Reports in Company Prospectuses, Revised 2019.

FX Multitech identified four profit-reconciliation categories for the two years: prior-period expenses, income-tax expense, deferred-tax expense and exchange-rate fluctuation gain. The company said prior-period income had been restated to the actual reporting period, tax liabilities had been recalculated using rates for the respective financial year, and previously inappropriate foreign-exchange gain or loss recognition had been restated.

How much did FX Multitech’s restated FY26 profit change?

FX Multitech’s restated FY26 profit after tax was Rs 18.55 lakh below the audited figure, while its FY25 restated profit was Rs 46.39 lakh above the audited figure. Audited consolidated profit after tax was Rs 11.988 crore for the year ended March 31, 2026 and Rs 9.0861 crore for the year ended March 31, 2025; the restated amounts were Rs 11.8025 crore and Rs 9.55 crore, respectively.

In FY26, Rs 13.33 lakh of prior-period expenses and Rs 6.88 lakh of income-tax expense reduced the audited profit, while a Rs 1.66 lakh deferred-tax expense adjustment partly offset those reductions. Deferred tax records tax effects of timing differences between accounting income and taxable income that can reverse in later periods, using substantially enacted tax rates and regulations at the balance-sheet date.

The FY25 reconciliation moved in the opposite direction because a Rs 46.05 lakh prior-period-expense adjustment and a Rs 12.63 lakh exchange-rate fluctuation gain exceeded a Rs 14.64 lakh deferred-tax expense adjustment and Rs 2.35 lakh income-tax expense adjustment. FX Multitech’s foreign-currency policy requires monetary assets and liabilities to use the closing exchange rate, with settlement and restatement differences recognised in the statement of profit and loss.

The comparison shows that the total adjustment was not consistent in direction across the two periods: it reduced FY26 profit but raised FY25 profit. The FY26 reported restated figure depends on the company continuing to present the stated period allocation, tax calculations and foreign-exchange treatment in the offer-document financial information.

What changed in FX Multitech’s March 2026 net worth?

FX Multitech’s restated net worth at March 31, 2026 was Rs 38.063 crore, compared with audited net worth of Rs 38.026 crore. At March 31, 2025, restated net worth was Rs 26.2603 crore, Rs 1.4428 crore below audited net worth of Rs 27.7031 crore, showing that the aggregate reconciliation moved from negative to slightly positive over the following year.

For this reconciliation, net worth equals audited net worth plus the closing balance of adjustments. The closing balance of adjustments was positive Rs 3.70 lakh at March 31, 2026, compared with negative Rs 1.4428 crore at March 31, 2025; the March 2026 schedule included a Rs 1.4428 crore opening depreciation adjustment, a Rs 1.6653 crore security-premium adjustment and the Rs 18.55 lakh reduction in restated profit.

FX Multitech said the security premium paid for the acquisition of its subsidiary had not been considered when calculating pre-acquisition profit. FX Multitech acquired 51% of Everest Chillers Private Limited on January 10, 2025, and reported minority interest of Rs 2.0458 crore at March 31, 2026, including Rs 30.15 lakh of profit during that year.

The March 2025 reconciliation included Rs 44.80 lakh for unrecognised gratuity, Rs 69,000 of interest on late payments to micro, small and medium enterprises, or MSMEs, Rs 2.28 lakh of tax deducted at source, or TDS, liability and interest, Rs 70,000 of foreign-exchange gain, Rs 6.64 lakh of earlier-period income tax and Rs 14.59 lakh of deferred tax. It also included a negative Rs 1.6653 crore security-premium adjustment and a Rs 46.39 lakh change in profit.

How were depreciation, gratuity and MSME interest corrected?

FX Multitech said the depreciation correction related to periods on or before March 31, 2023 and was debited to opening reserves. The company said depreciation had been calculated erroneously using the written-down value, or WDV, method and useful lives prescribed under Schedule II of the Companies Act, 2013; WDV applies depreciation to an asset’s remaining carrying value.

FX Multitech said it had not recognised its gratuity liability under Accounting Standard 15, or AS-15, and subsequently adjusted it based on a valuation report. Gratuity is a defined-benefit retirement plan under which eligible employees receive a lump sum equal to 15/26 days of salary for each completed year of service, with vesting after five years; the restated long-term gratuity provision was Rs 13.49 lakh at March 31, 2026, against Rs 12.64 lakh a year earlier.

FX Multitech also said late-payment interest to MSMEs had not been booked and was then included in the restatement. The company’s March 31, 2025 opening adjustment was Rs 69,000, while its March 31, 2026 consolidated statements classified the business in one reportable segment under Accounting Standard 17, Segment Reporting.

What do the restated figures show about FX Multitech’s financial reporting?

FX Multitech’s restatement changed annual earnings and the equity base used in the proposed IPO presentation through different mechanisms. FY26 profit declined by Rs 18.55 lakh because of prior-period and tax items, whereas March 2026 net worth rose by Rs 3.70 lakh because the Rs 1.6653 crore security-premium adjustment exceeded the Rs 1.4428 crore depreciation adjustment and the profit reduction.

FX Multitech’s consolidated reporting also reflects its 51% holding in Everest Chillers from January 10, 2025. Under Accounting Standard 21, Consolidated Financial Statements, the company combines assets, liabilities, income and expenses line by line and eliminates intragroup balances and transactions that create unrealised profit or loss.

Conclusion

FX Multitech’s restated figures show that the March 2026 changes were not limited to a single tax or accounting entry. The Rs 18.55 lakh reduction in FY26 profit followed corrections to prior-period, income-tax and deferred-tax treatments, while the Rs 3.70 lakh increase in March 2026 net worth resulted from a separate reconciliation that also included depreciation, gratuity, MSME-interest, TDS, foreign-exchange and security-premium items.

Readers should watch whether the proposed SME IPO offer document retains these restated presentations and whether later financial statements continue the disclosed accounting treatments. The identifiable areas for comparison are the company’s tax and foreign-currency accounting, actuarial gratuity provision, depreciation approach and the acquisition-related security-premium treatment for Everest Chillers.