Gayatri Highways Limited Earnings Summary — Q1 FY2027
Gayatri Highways Reports Widening Losses Amid Auditor Resignation and Financial Distress
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 51.3% sequentially in Q1 FY2027.
- Revenue has compounded at 230.5% annualised over the last 10 quarters.
- Net profit of ₹-3 Cr is 33.5% below the same quarter last year.
- Operating margin stands at 7.0% in Q1 FY2027.
- Over the last two years operating margin has contracted by 5783 bps.
- PBT margin is -38.6%.
- Operating profit of ₹1 Cr is 338.1% higher year-on-year.
- Operating leverage continues to improve.
- 1 of the last 2 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 36/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 7 | 15 | — | — | — | 1 | 2 | 1 | 2 | 1 |
| Expenses | Volatile | 7 | 14 | 0 | 2 | 0 | 3 | 5 | 1 | 1 | 7 |
| Operating Profit | Volatile | 1 | 1 | -0 | -2 | -0 | -2 | -3 | -1 | 1 | -6 |
| Operating Margin | Volatile | 7.0% | 5.8% | — | — | — | -176.3% | -144.9% | -89.2% | 64.9% | -511.0% |
| Other Income | Volatile | 1 | 1 | 1 | 1 | 36 | 1,339 | -68 | -57 | -68 | -157 |
| Interest | Volatile | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | -1 |
| Depreciation | Softening | — | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | Volatile | -3 | -2 | -4 | -5 | 32 | 1,333 | -75 | -61 | -71 | -162 |
| Tax | Volatile | 0 | 0 | — | 0 | 0 | — | -0 | 0 | 0 | — |
| Net Profit | Volatile | -3 | 7 | -3 | -3 | -2 | 1,347 | -98 | -45 | -75 | -168 |
| Net Margin | Volatile | -39.9% | 47.4% | — | — | — | 114178.0% | -4503.2% | -6960.0% | -4460.1% | -14259.3% |
Key Takeaways
- Gayatri Highways reported a standalone net loss of ₹274.94 lakhs for Q1 FY2027, a sharp reversal from the ₹3,152.31 lakhs profit in the same quarter last year which was driven by exceptional other income.
- Statutory Auditors M/s. PRSV & Co. LLP resigned effective August 13, 2026, citing manpower constraints and professional pre-occupation, a significant governance red flag.
- The auditors issued a qualified conclusion, noting the company failed to impair investments and loans totaling over ₹5,000 lakhs in distressed entities Cyberabad Expressways and Hyderabad Expressways.
- The company remains in default on a term loan and interest to IL&FS Financial Services Limited totaling ₹5,015.86 lakhs, with no interest provided for the current quarter.
- A material subsidiary, Indore Dewas Tollways Limited, is currently under liquidation, and its financial results were not fully consolidated due to lack of information from the liquidator.
- The company is pursuing a divestment strategy, with the sale of its entire stake in HKR Roadways Limited to Cube Highways expected to complete by September 30, 2026.
Management Guidance
Management is focused on the consummation of the HKR Roadways stake sale to Cube Highways and infrastructure V Pte Limited by September 2026 to address liquidity constraints.
Sentiment Shift
Deteriorating
The combination of widening operational losses, auditor resignation, and multiple qualified audit notes regarding debt defaults and non-impairment of assets indicates worsening financial stability.
Outlook
The outlook is critical as the company faces technical insolvency with negative net worth and reliance on asset sales for survival while navigating defaults and liquidation of key subsidiaries.
From the Annual Report (Key Quotes)
“The Company had written back Zero Interest Subordinate Loan payable to Gayatri Projects Limited... balance amount of Rs. 4,476.51 Lakhs had not been confirmed as written off.”
“Consequent to the erosion in the net worth of CEL, the exposure of the Company to the extent of Rs. 4,536.23 lakhs is required to be impaired fully.”
“The company had defaulted in repayment of Term Loan and interest there on to the extent of Rs. 5015.86 Lakhs... outstanding as on 30th June 2026.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Gayatri Highways Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.