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RKEC Projects Q3 Net Profit Drops 73% YoY to ₹1.71 Cr; Auditor Flags ₹34.6 Cr Unpaid Tax Dues
RKEC Projects reported a weak set of results for Q3 FY26, with revenue from operations plunging 72.5% YoY to ₹32.65 crore. Net profit followed a similar trajectory, declining 73% YoY to ₹1.71 crore from ₹6.35 crore in the same period last year. A significant red flag was raised by the statutory auditors regarding unpaid statutory tax dues totaling ₹34.62 crore as of December 31, 2025. While the company remains profitable on a quarterly basis, the sharp contraction in execution and the tax liability overhang are major concerns.
Key Highlights
Revenue from operations fell sharply by 72.5% YoY to ₹3,265.05 Lacs in Q3 FY26.
Net Profit declined 73% YoY to ₹170.98 Lacs compared to ₹634.74 Lacs in Q3 FY25.
Statutory auditors highlighted accumulated unpaid statutory dues of ₹34.62 Crores.
Earnings Per Share (EPS) dropped to ₹0.67 from ₹2.65 in the corresponding previous year quarter.
Inventory levels rose to ₹24,008.95 Lacs from ₹19,658.04 Lacs in March 2025, indicating a potential slowdown in project completion.
💼 Action for Investors
Investors should be cautious given the massive drop in revenue and the auditor's warning on significant unpaid tax liabilities. It is recommended to monitor management's plan for clearing these dues and their guidance on project execution timelines.