Shiva Granito Export FY26 loss despite 36% revenue rise

Key takeaway for investors

Shiva Granito Export Ltd reported a standalone net loss of ₹0.06 crore in FY26, reversing from a net profit of ₹0.02 crore in FY25, even as revenue from operations grew 36.3% year-on-year. The bigger issue in the results is not just the profit swing, but the statutory auditor’s qualified opinion that highlights multiple accounting and compliance gaps. These qualifications relate to expected credit losses on receivables, inventory valuation, interest payable to MSMEs, and gratuity liability measurement.

Board approves audited FY26 results in Udaipur

The Board of Directors approved the audited standalone financial results for the half-year and full-year ended March 31, 2026 on August 6, 2026. The meeting was held at the company’s registered office in Udaipur. The results were issued pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

FY26 numbers: revenue up, profitability down

Revenue from operations rose to ₹11.73 crore in FY26 from ₹8.60 crore in FY25. Other income was flat at ₹0.05 crore. However, total expenses increased to ₹11.77 crore from ₹8.59 crore, which compressed profitability.

Profit before tax fell sharply to ₹0.01 crore in FY26 versus ₹0.07 crore in FY25. The company also recorded a tax expense of ₹0.07 crore, which included current tax of ₹0.00 crore and deferred tax liability of ₹0.07 crore, contributing to the net loss.

Earnings per share (EPS) stood at -₹0.04 (basic and diluted) in FY26, compared with ₹0.02 in FY25.

Cost drivers: stock purchases rose sharply

The FY26 cost structure shows a jump in purchases of stock-in-trade to ₹9.80 crore from ₹6.34 crore in FY25. Cost of materials consumed, however, declined to ₹1.08 crore from ₹2.83 crore. Even with the drop in materials consumed, the overall rise in expenses largely tracked the increase in stock purchases and the higher scale of operations.

Qualified audit opinion: what the auditor flagged

Statutory auditor Ankit Suresh Jain & Co. issued a qualified opinion on the standalone financial results for the half-year and full-year ended March 31, 2026.

The qualification stems from four material areas:

1. Expected credit loss (ECL) not provided on trade receivables: The auditor flagged non-provision for expected credit losses on trade receivables amounting to ₹7.74 crore.
2. Inventory valuation limitations: The auditor noted lack of appropriate inventory valuation due to unavailable stock records.
3. MSME interest liability not provided: The company did not provide for interest payable to micro and small enterprises under Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.
4. Gratuity liability not actuarially valued: The auditor pointed to the absence of actuarial valuation for gratuity liability under Ind AS 19.

Taken together, these issues raise questions on earnings quality and balance sheet measurement, because receivables, inventory, statutory dues, and employee benefit obligations are key areas for any manufacturing and trading business.

Snapshot table: FY26 vs FY25

Auditor appointment: new firm effective August 3, 2026

Separately, Shiva Granito Export stated that it appointed M/s Ankit Suresh Jain & Co. as statutory auditor effective August 3, 2026. The Board approved this appointment on August 3, 2026 to fill a casual vacancy created by the resignation of the previous statutory auditor.

The qualified opinion on the FY26 results is also issued by Ankit Suresh Jain & Co., as named in the financial results disclosure.

Quarterly data points available in public disclosures

A separate quarterly data table (figures in crores except per share values) for a period labelled Mar 25 reports total revenue of ₹6.78 crore, total operating expense of ₹6.40 crore, and net income of ₹0.01 crore. As presented, the table is on a QoQ comparison basis and includes other line items such as depreciation/amortization of ₹0.22 crore and operating income of ₹0.39 crore.

This quarterly snapshot is distinct from the audited FY26 annual numbers and should be read in the context of the fiscal period references used in that dataset.

Compliance note: trading window closure around results

The company also disclosed that, under SEBI (PIT) Regulations, 2015 (as amended), the trading window for dealing in the company’s securities would remain closed from April 1, 2026 until 48 hours after the declaration of the audited financial statements for the half-year and year ended March 31, 2026 for designated and connected persons.

Market impact: what changes when results are qualified

A qualified audit opinion does not automatically mean fraud or insolvency, but it does indicate that the auditor believes certain items may be materially misstated or not adequately supported. In this case, the flagged areas cover:

• Receivables provisioning (₹7.74 crore ECL not provided), which can directly affect reported profit and net worth if collections are weak.
• Inventory records and valuation, which matters for a business where stock-in-trade and materials are significant cost drivers.
• MSME interest compliance, which can create unrecorded liabilities if vendor payments are delayed.
• Employee benefits measurement under Ind AS 19, which is a standard requirement for gratuity accounting.

Investors typically watch whether management addresses these items in subsequent periods through stronger controls, clearer disclosures, and adjustments where required.

Conclusion

Shiva Granito Export’s FY26 performance shows higher operating scale but weaker profitability, ending the year in a net loss of ₹0.06 crore. The larger takeaway is the auditor’s qualified opinion covering receivables provisioning, inventory valuation support, MSME interest liability, and actuarial gratuity valuation. The next key monitorable will be how the company responds to these audit points in future disclosures following the Board’s approval of results on August 6, 2026.