Autoline Industries Limited — Important, 15-05-2026: Disclosure of material issue

Autoline Industries' board met and approved the financial results for the quarter and year ended March 31, 2026.

**Key Financial Highlights (Consolidated, FY26):**

* **Revenue from Operations:** Rs 824.05 Cr.

* **Net Profit:** Rs 38.50 Cr, boosted by an exceptional gain of Rs 21.84 Cr from the sale of its stake in Autoline Industrial Park Limited (AIPL).

* **EPS:** Rs 8.59.

**Key Issues & Company Response:**

1. **Issue: Auditor's Qualified Opinion on MAT Credit:**

* **Details:** Auditors believe Rs 5.97 Cr of Minimum Alternate Tax (MAT) credit from FY11-12 is unlikely to be utilized within the 15-year expiry period, overstating assets and earnings.

* **Impact:** Overstates MAT Credit Asset, total comprehensive income & retained earnings by Rs 5.97 Cr.

* **Company's Response:** Management expects to utilize or write off the remaining MAT credit in FY27, clarifying this has no impact on cash flows or operational profitability.

2. **Issue: US Lawsuit & Contingent Liability:**

* **Details:** A US court judgment holds the company liable for USD 10.38 Lakhs (~Rs 9.70 Cr). After existing provisions, the net contingent liability disclosed is Rs 5.31 Cr (USD 5.68 Lakhs).

* **Impact:** Potential financial outflow if the judgment is enforced in India.

* **Company's Response:** Management, based on legal opinion, states the judgment is not directly enforceable in India and requires separate proceedings, for which the company has strong legal defenses. It is currently disclosed as a contingent liability.

**Other Strategic Developments:**

* **Amalgamation Scheme:** The board approved the merger of Autoline Design Software Limited (wholly-owned subsidiary) with Autoline Industries. This aims for operational synergies, efficiency, cost reduction, and enhanced shareholder value. No new shares will be issued.

* **Director Resignation:** Mr. Siddarth Somnath Razdan, a Non-Executive – Nominee Director, resigned following the withdrawal of nomination by Indianivesh Renaissance Fund.

* **New Warrants Allotment:** The company allotted 32.65 lakh warrants in February 2026, convertible into equity shares within 18 months.

* **Internal Auditor:** P G Bhagwat LLP, Chartered Accountants, was appointed as the Internal Auditor for FY27, on the Audit Committee's proposal.

* **Land Acquisition:** Acquired a 99-year lease land in Gujarat for Rs 11.12 Cr for business expansion.

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