Bench Mark Infotech Services Limited Restates FY26 Profit Lower

Bench Mark Infotech Services Limited restated profit after tax for the financial year ended March 31, 2026 (FY26) to Rs 10.218 crore from audited profit of Rs 11.7319 crore, a Rs 1.5139 crore reduction. The reconciliation records a Rs 59.35 lakh creditor adjustment and a net Rs 92.04 lakh tax-related reduction.

Why was Bench Mark Infotech's FY26 profit restated lower?

Bench Mark Infotech's FY26 profit was restated lower because its reconciliation included negative creditor and deferred-tax adjustments that exceeded a positive current-tax adjustment. Profit after tax fell to Rs 10.218 crore from Rs 11.7319 crore, while the reported change in profit was Rs 151.39 lakh.

The company presents the revision as a reconciliation from audited profit after tax to restated profit after tax for each of FY24, FY25 and FY26. Restated profit was lower in all three years: Rs 1.4802 crore in FY24 against Rs 2.0419 crore audited, Rs 5.8304 crore in FY25 against Rs 6.0249 crore audited, and Rs 10.218 crore in FY26 against Rs 11.7319 crore audited.

The scale of the reduction changed over the three years. FY24 profit was reduced by Rs 56.17 lakh, FY25 profit by Rs 19.45 lakh and FY26 profit by Rs 151.39 lakh. The FY26 movement was therefore the largest of the three reported profit reconciliations, even though the line items affecting each year differed.

Which FY26 items caused Bench Mark Infotech's profit reduction?

The Rs 98.41 lakh deferred-tax expense was the largest FY26 adjustment, followed by a Rs 59.35 lakh negative creditor-write-back line. The reconciliation also includes a Rs 6.37 lakh income-tax expense adjustment, which partly offset the two negative entries and resulted in the overall Rs 151.39 lakh reduction in FY26 profit.

Bench Mark Infotech states that creditor balances outstanding for a considerable period and no longer payable were identified during preparation of the restated financial statements. Such balances were written back and recognised in the respective periods; the FY26 profit reconciliation records the creditor-write-back adjustment as negative Rs 59.35 lakh.

Deferred tax is the tax effect of timing differences between accounting income and taxable income that may reverse in later periods. Bench Mark Infotech says it recomputed deferred tax under Accounting Standard 22, Accounting for Taxes on Income (AS 22), for timing differences arising from the restatement adjustments. The Rs 98.41 lakh deferred-tax expense and Rs 6.37 lakh income-tax adjustment together produced a Rs 92.04 lakh net tax-related reduction in FY26 profit.

The FY26 table does not show separate adjustments for bad debts, gratuity, interest on borrowings, interest on delayed payments to micro, small and medium enterprise suppliers, insurance, or depreciation and amortisation. Those items appear in the FY24 or FY25 reconciliation, meaning the FY26 profit restatement arose from a narrower set of listed adjustments.

How did the correction mix differ in FY24 and FY25?

FY24 and FY25 included operating and prior-period corrections that were absent from the FY26 profit reconciliation. FY24 recorded Rs 86.87 lakh of sundry balances written off, Rs 4.51 lakh of gratuity expense, Rs 2.98 lakh of interest on delayed micro, small and medium enterprise dues, Rs 1.79 lakh of depreciation and amortisation expense, and Rs 1.47 lakh of insurance expense.

FY24 also included positive adjustments of Rs 17.96 lakh for creditors written back and Rs 3.69 lakh for profit on sale of mutual funds. Income-tax expense of Rs 36.91 lakh and deferred-tax expense of Rs 56.80 lakh were also recorded, resulting in restated FY24 profit after tax of Rs 1.4802 crore.

FY25 combined previously unrecognised income with additional costs. Bench Mark Infotech added Rs 25.30 lakh of profit on sale of mutual funds, but reversed Rs 8.67 lakh of fixed-deposit interest and recognised Rs 25.04 lakh of bad debts, Rs 7.53 lakh of interest on delayed supplier payments, Rs 3.04 lakh of gratuity expense and Rs 3.11 lakh of depreciation and amortisation expense.

The delayed-payment interest relates to suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006, or MSMED Act. Bench Mark Infotech says interest payable under Section 16 of the MSMED Act had not been recognised and was computed during preparation of the restated financial statements. FY25 also recorded a Rs 35.17 lakh income-tax adjustment and a Rs 24.79 lakh deferred-tax expense.

What did the restatement change in Bench Mark Infotech's net worth?

Bench Mark Infotech's restatement reduced net worth at March 31, 2026 to Rs 26.5511 crore from audited net worth of Rs 27.2084 crore. The closing balance of adjustments was negative Rs 65.73 lakh, comprising an opening adjustment balance of Rs 86.87 lakh and a Rs 151.39 lakh change in profit or loss.

Net worth moved in the opposite direction in the two preceding balance sheets because cumulative opening-balance items also flowed through reserves and surplus. Restated net worth was Rs 16.3331 crore at March 31, 2025 compared with audited net worth of Rs 15.4644 crore, and Rs 10.5027 crore at March 31, 2024 compared with Rs 10.1713 crore audited.

The FY24 net-worth reconciliation includes Rs 150.20 lakh of creditors and liability balances written back, partly offset by Rs 48.75 lakh of accrued-interest and fixed-deposit balance reversals and Rs 33.92 lakh of gratuity expense. It also includes a Rs 16.84 lakh deferred-tax adjustment, showing why net-worth movements cannot be read solely from the annual restated profit figures.

Conclusion

Bench Mark Infotech's restatements reduced FY26 profit after tax by Rs 1.5139 crore and net worth at March 31, 2026 by Rs 65.73 lakh. The profit reduction was concentrated in the Rs 59.35 lakh creditor adjustment and the Rs 98.41 lakh deferred-tax expense, whereas net worth also reflected opening-balance corrections recorded through reserves and surplus.

The next disclosure to watch is whether Bench Mark Infotech reports an update to the FY24 to FY26 reconciliation or identifies further prior-period items. The supplied restatement explains the existing mechanisms, including actuarial valuation for gratuity, Section 16 MSMED Act interest, depreciation recomputation under Schedule II of the Companies Act, 2013, and deferred-tax recomputation under AS 22, but does not disclose a further correction plan.