Emami Realty FY26 Auditors Flag ₹105 Crore Impairment on Lohitka Properties LLP Loans
Auditor Qualification Flags Lohitka Properties Loan Impairment
The Board of Directors of Emami Realty Limited approved the audited standalone and consolidated financial results for the fourth quarter and financial year ended March 31, 2026, at a meeting held on May 27, 2026. During the review, the statutory auditors, Agrawal Tondon & Co., issued an audit report with an unmodified opinion but included an emphasis of matter regarding the company's 10% partnership in Lohitka Properties LLP, where accounts are not yet finalized.
The Impairment Charge
The company noted that it assessed the realisable value of loans given, providing for an impairment loss of ₹105.00 crores for the year ended March 31, 2026. The impairment loss has raised questions about potential impacts on the company's liquidity and capital allocation for upcoming projects.
FY26 Financial Performance
Emami Realty Limited reported a consolidated net loss of ₹18,947.07 lakh for the financial year ended March 31, 2026, widening from the net loss of ₹12,623.76 lakh in the previous year. Revenue from operations for the year stood at ₹9,315.63 lakh, compared to ₹8,230.84 lakh in FY25.
The Lohitka Partnership
Lohitka Properties LLP is a joint venture between Ashwin Sheth Group and Emami Group started in 2014 as a special purpose vehicle for undertaking a residential project named Montana located at Mulund, West in Mumbai, with each group holding a 50% profit sharing interest. However, the Company is a 10% partner in Lohitka Properties LLP, as on March 31, 2024. The Company is a 10% partner in Lohitka Properties LLP, Mumbai which is developing a real estate project, presently under construction.
Ongoing Audit Matters
The financial statement of the above entity for the Financial Year 2023-24 have not yet been finalized and audited and thus not made available to the Company for incorporation in its own financial statement. The auditor's emphasis of matter signals that finalisation of Lohitka Properties LLP's accounts remains outstanding as of the FY26 audit closure, creating uncertainty around the valuation of Emami Realty's interest in the venture.
Developer Context
Emami Realty, the real estate arm of Emami Group was incorporated in 2006, to undertake real estate projects in residential, commercial and retail sectors. Emami Realty Ltd has a pan India presence with over 3.7 crore Sq. Ft development at different stages of planning, construction and delivery across West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Orissa, Maharashtra and Sri Lanka. The Group has delivered landmark projects including South City project (commercial cum residential), Urbana (residential), Orbit Heights (residential) and Emami City (residential) in Kolkata, Emami Tejomaya (residential in Chennai), Emami Aerocity (residential) in Coimbatore, Emami Nature (residential) in Jhansi and many more.