Pratham EPC Projects Limited — Important, 23-06-2026: Disclosure of material issue

Pratham EPC Projects has released its audited financial results for the half-year and year ended March 31, 2026, following a board meeting where the results were approved.

**The Issue:** Pratham EPC Projects reported a significant year-on-year decline in consolidated net profit, falling to ₹6.16 Cr from ₹13.71 Cr, and standalone net profit, which dropped sharply to ₹1.55 Cr from ₹13.53 Cr for the financial year ending March 31, 2026. This profitability erosion happened despite consolidated revenue from operations growing to ₹140.22 Cr. The standalone revenue, however, declined. A key contributor to this profit drop was a steep reduction in Profit Before Tax from India operations, which fell from ₹18.02 Cr to ₹2.28 Cr.

**Possible Impact:** Investors may have concerns regarding the company's profitability and operational efficiency, particularly within its domestic market. This situation could lead to questions about pricing power, cost management, or competitive pressures, potentially influencing investor sentiment and valuation.

**Company’s Response/Mitigation:** The company has provided transparent audited financial results, offering a detailed view of both consolidated and standalone performance. Segment reporting highlights that international operations maintained better profitability, with Profit Before Tax for outside India growing from ₹0.35 Cr to ₹5.47 Cr. The company also confirmed efficient fund utilization: 100% of the ₹36 Cr IPO proceeds have been deployed, and nearly all of the ₹10 Cr from a preferential allotment (₹9.97 Cr utilized) has been directed towards business expansion. While no explicit mitigation plan for the profit decline is detailed in this document, the comprehensive disclosure provides key data points for investors.