Quanto Agroworld’s FY26 tax provision was Rs 11.95 lakh

Quanto Agroworld Limited recorded a FY26 tax provision of Rs 11.95 lakh on restated profit before tax of Rs 8.41 crore. Its tax-shelter statement lists Rs 7.64 crore of exempt agricultural income as a permanent difference and calculates minimum alternate tax, or MAT, on Rs 76.64 lakh of income.

Why was Quanto Agroworld’s FY26 tax provision Rs 11.95 lakh?

Quanto Agroworld’s FY26 tax provision was Rs 11.95 lakh because the company’s tax reconciliation adjusted for Rs 7.64 crore of exempt agricultural income and reported tax under the MAT computation. For the year ended March 31, 2026, restated profit before tax was Rs 8.41 crore, while the agricultural-income adjustment was listed under permanent differences.

The company disclosed a statutory tax rate of 25.17%, including applicable surcharge, education cess and higher education cess. Applying that rate to FY26 restated profit before tax produced a nominal tax expense of Rs 2.12 crore, but the final tax expense shown in the tax-shelter statement was Rs 11.95 lakh. Calculated from the disclosed figures, the final provision was about 1.42% of FY26 pre-tax profit.

The difference arises because accounting profit before tax and the income used in the tax calculation were not the same disclosed measure. Quanto Agroworld classified the Rs 7.64 crore agricultural-income amount as exempt income and a permanent difference, while it reported no FY26 amount for other expenses or additions under sections 28 to 44DA in that permanent-differences table.

How did agricultural-income exemption affect the FY26 tax calculation?

Quanto Agroworld’s agricultural-income exemption reduced the tax reconciliation from the Rs 2.12 crore nominal tax amount toward the reported Rs 11.95 lakh provision. The FY26 tax-shelter statement shows Rs 7.64 crore of exempt agricultural income, equal to the total permanent differences reported for the year ended March 31, 2026.

Permanent differences are presented separately from timing differences, which are differences between accounting and tax recognition. Quanto Agroworld reported FY26 timing differences of Rs 62.76 lakh, consisting of a Rs 62.50 lakh depreciation difference between books and tax and a Rs 0.26 lakh gratuity provision. The company’s employee-benefit statement also reports Rs 0.26 lakh of gratuity expense recognised in FY26 profit and loss.

The tax result therefore depends on the composition and treatment of the company’s income, not solely on its reported profit before tax. FY26 revenue from operations was Rs 40.35 crore, compared with Rs 16.49 crore in FY25, but the supplied information does not provide a revenue split identifying the source of the Rs 7.64 crore agricultural-income adjustment.

How did Quanto Agroworld arrive at its MAT provision?

Quanto Agroworld arrived at its final FY26 provision through MAT of Rs 11.95 lakh on MAT income of Rs 76.64 lakh. MAT is minimum alternate tax, and the company states that income under MAT is computed under section 115JB of the Income Tax Act, 1961.

The FY26 statement reports net adjustments of Rs 77.06 lakh before carried-forward loss and Rs 44.86 lakh after the disclosed Rs 32.20 lakh carried-forward loss. It then shows a tax impact of adjustments of Rs 11.29 lakh and lists Rs 11.29 lakh as tax expenses under normal tax liability. The final tax-expense line nevertheless reports Rs 11.95 lakh, the same amount as FY26 tax under MAT.

The disclosed MAT income was smaller than both accounting pre-tax profit and the nominal-tax calculation base. That distinction is material because FY26 restated profit before tax was Rs 8.41 crore, whereas MAT income was Rs 76.64 lakh. The tax-shelter statement should be read with the notes to the company’s financial information, as directed in the document.

How did the tax position change from FY24 to FY26?

Quanto Agroworld’s final tax expense increased to Rs 11.95 lakh in FY26 from Rs 4.37 lakh in FY25 and Rs 3.95 lakh in FY24. Restated profit before tax rose to Rs 8.41 crore in FY26 from Rs 6.22 crore in FY25 and Rs 5.76 crore in FY24, so the increase in tax expense was substantially smaller than the rise in reported pre-tax profit.

MAT income increased to Rs 76.64 lakh in FY26 from Rs 38.40 lakh in FY25 and Rs 23.77 lakh in FY24. FY25 includes a Rs 38.40 lakh deduction for business loss or unabsorbed depreciation, resulting in net MAT income of Rs 28.08 lakh. The FY24 and FY26 MAT tables show no deduction in that line, and FY26 MAT tax increased to Rs 11.95 lakh from Rs 4.37 lakh in FY25.

The presentation of agricultural income also changed across the three years. The tax-shelter statement reports Rs 7.64 crore in FY26, compared with negative Rs 5.86 crore in FY25 and negative Rs 5.20 crore in FY24. Net adjustments were Rs 77.06 lakh in FY26, Rs 5.84 crore in FY25 and Rs 6.83 crore in FY24, indicating that the reconciliation entries differed materially by reported period.

What tax elections and qualifications did Quanto Agroworld disclose?

Quanto Agroworld disclosed that it opted to be governed by sections 115BAA/115BAB of the Income Tax Act, 1961. The company said the tax expense for each of FY24, FY25 and FY26 was computed after considering the effect of that election, although the supplied note does not separately identify which individual provision applies to a particular activity or entity.

The company attached a qualification to its FY24 tax figures. It said the March 31, 2024 calculation was derived from a provisional computation of total income prepared in line with the final return intended for assessment year 2024-25 and could change at the time of filing. No equivalent provisional-computation statement appears in the supplied FY25 and FY26 tax notes.

The low FY26 provision also affected the gap between pre-tax and post-tax earnings. Quanto Agroworld reported FY26 profit after tax of Rs 8.38 crore, compared with Rs 6.63 crore in FY25 and Rs 5.37 crore in FY24. The difference between FY26 pre-tax profit of Rs 8.41 crore and profit after tax of Rs 8.38 crore is consistent with a Rs 11.95 lakh tax expense after rounding the crore-denominated figures.

Conclusion

Quanto Agroworld’s Rs 11.95 lakh FY26 tax provision was far below the Rs 2.12 crore nominal tax amount calculated at 25.17% on reported pre-tax profit. The disclosed reconciliation identifies Rs 7.64 crore of exempt agricultural income as the main permanent difference, while the final provision is shown at the Rs 11.95 lakh MAT amount on Rs 76.64 lakh of MAT income.

The next reported tax position will depend on whether the agricultural-income adjustment, MAT base and timing differences change after FY26. Quanto Agroworld disclosed Rs 32.20 lakh of carried-forward loss and a Rs 62.50 lakh book-to-tax depreciation difference in FY26, while the company’s FY24 tax computation remains subject to changes considered when the return is filed.