New Delhi: Oswal Greentech Limited has reported a major financial setback for the financial year ended March 31, 2026, after posting a net loss of ₹62.41 crore and disclosing an alleged fraud worth ₹14.58 crore linked to a former authorised representative.
The company’s latest audited financial results have raised concerns among investors over recoverability of large inter-corporate deposits, legal disputes and internal governance issues.
Reversal in Earnings and Exceptional Provisions
According to the company’s audited financial statement approved by the Board of Directors on May 26, the company recorded a sharp reversal from the previous financial year, when it had posted a net profit of ₹8.53 crore. Officials stated that the losses were primarily driven by a massive exceptional provision of ₹101.22 crore made against doubtful inter-corporate deposits and real estate advances.
The company’s revenue from operations during FY26 stood at ₹36.80 crore, slightly higher than the ₹35.25 crore reported in FY25. However, despite the increase in revenue, the exceptional financial adjustments severely impacted the company’s profitability. Total income for FY26 rose to ₹105.49 crore compared to ₹92.72 crore in the previous year.
Statutory auditors M/s Mehta Chokshi & Shah LLP issued a modified audit opinion on the company’s accounts. The qualification was mainly linked to the absence of confirmations for inter-corporate deposits and real estate advances amounting to ₹1,226.76 crore. Auditors reportedly stated that without such confirmations they were unable to independently verify balances or assess whether further financial provisions were necessary.
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Real Estate Transaction Interception and Terminated Mandates
The company also disclosed details of an alleged fraud connected to a proposed land transaction at Rishra village in West Bengal. According to the disclosure, former authorised representative Vishnu Prasad Muddana allegedly engaged in unauthorised and fraudulent activities involving the property transaction even after his authority had been terminated.
Company officials estimated the financial impact of the alleged fraud at approximately ₹14.58 crore. The matter has now been escalated through legal proceedings, and the company has sought registration of an FIR at Serampore Police Station in West Bengal. Authorities are also attempting to prevent any further unauthorised dealings related to the disputed property.
The disclosures further revealed that Vishnu Prasad Muddana had previously served as Chief Financial Officer of Oswal Agro Mills Limited between January and July 2025. The company alleged that collusion, misrepresentation and unauthorised communication were involved in the transaction process.
Interest Arbitration Shortfalls and High Court Challenges
Apart from the fraud issue, Oswal Greentech is also engaged in a major arbitration dispute related to interest charged on inter-corporate deposits. According to company records, an arbitration award of ₹97.17 crore was passed against a claim amounting to ₹472.12 crore, creating a shortfall of around ₹374.95 crore. The company has challenged the arbitration award before the Delhi High Court.
Financial experts believe the developments may impact investor confidence, especially due to concerns regarding corporate governance, recoverability of advances and risk management systems. Analysts point out that provisions exceeding ₹100 crore generally indicate substantial uncertainty surrounding asset recovery and liquidity.
Governance Monitoring and Market Volatility
The company’s quarterly results for the January–March 2026 period also reflected heavy pressure. During the quarter, Oswal Greentech reported a net loss of ₹83.15 crore while recognising the exceptional provision linked to doubtful advances.
Market observers say the case highlights broader concerns regarding inter-corporate lending practices and oversight mechanisms within listed companies. Experts also note that ongoing litigation, unresolved arbitration claims and allegations of fraud could continue to weigh on the company’s financial stability in the coming quarters.
Historical stock performance data showed mixed investor sentiment around the company. While the stock has delivered gains over a longer five-year period, it has witnessed sharp declines during the past year amid volatility and governance-related concerns.
The company has stated that it is pursuing all available legal remedies and recovery measures while strengthening internal controls and compliance procedures. Meanwhile, investors and market participants are closely monitoring further developments related to the fraud allegations, arbitration proceedings and recovery of disputed advances.
