L T Elevator Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

L T Elevator Ltd's FY26 record shows a company growing fast but not converting that growth into cash. Revenue doubled to ₹111 crore, yet operating cash flow was negative ₹17 crore, and the audit trail carries inconsistencies, a standalone P&L signed eight months before the balance sheet, and an announcement describing the audit opinion as "qualified" while the filed report is unqualified.

Key findings

  1. Revenue doubled in FY26 but cash conversion collapsed, with receivables at 150 days Major - Revenue grew from ₹54.72 crore in FY25 to ₹111 crore in FY26, while operating cash flow fell from ₹-4.50 crore to ₹-16.99 crore and receivable days rose to 150. Management said government payments now take "roughly four months to get cleared" and that March payments did not clear until April. Large B2B developers provide "no advance pretty much," with most payment coming only after shipment and installation.
  2. Reported profit is not backed by operating cash flow, cumulative CFO is negative ₹15 crore over six years Major - Cumulative operating cash flow over FY21-FY26 was negative ₹15 crore against cumulative PAT of ₹29 crore, a CFO/PAT ratio of -0.50x. Free cash flow was negative for three straight years, FY24, FY25 and FY26, while PAT stayed positive each year. The company is funding a ₹25 crore capacity expansion, with the new facility to be commissioned by Q4 FY27.
  3. Reported borrowings of ₹19.54 crore include secured cash credit, with quantified mismatches in bank-submitted asset statements Major - Consolidated borrowings at FY26 were ₹19.54 crore, 97% of it short-term. The cash credit loan of ₹1,815.93 lakh is secured by hypothecation of all current and movable fixed assets. The company quantified monthly differences between bank-submitted statements and books for inventory and trade receivables, such as ₹118.82 lakh for April inventory. Shareholders approved raising borrowing limits to ₹250 crore at the 18th AGM.
  4. Audit opinions are clean, but the standalone P&L carries a signature date eight months earlier than the balance sheet Major - KSA & Co. issued unqualified opinions on both standalone and consolidated FY26 financials, dated 8 May 2026, with no Key Audit Matters. However, the standalone P&L is signed 19 August 2025, while the balance sheet and cash flow statement are signed 8 May 2026, a gap of over eight months. The announcement of the auditor's report refers to a "qualified opinion" in its Basis for Opinion section, while the filed report is unqualified.
  5. Acquiring Ricardo Elevators for ₹12.99 crore via share swap, while Park Smart received a related-party investment funded from IPO proceeds Major - L.T. Elevator will issue up to 4,61,000 shares at ₹281.86 each to four non-promoter individuals to acquire 100% of Ricardo Elevators for ₹12,99,37,460. The issue price equals the 10-day VWAP, which is 32% above the 90-day VWAP of ₹214.05. Management stated Ricardo orders are "already being done by L.T. Elevator" from March end/April, before the deal closed. Separately, the Board approved a ₹67.64 per share investment in subsidiary Park Smart Solutions, funded by IPO proceeds.
  6. Promoter control is concentrated in the Gupta family with no share pledging, while the company secretary resigned mid-year Minor - Promoters held 56.78% of the company with 0.00% pledged. Mr. Nishit Gupta was among the top 10 employees by remuneration. Mr. Sandipan Lai resigned as Company Secretary effective close of working hours on 16 February 2026, with the company citing "better carrier opportunity" while his resignation letter cited personal reasons.
  7. Contingent liabilities are limited to bank guarantees and a small disputed GST demand, with no provisions made Minor - Standalone contingent liability for bank guarantees was ₹12.74 crore as of FY26. A CGST transitional credit demand of ₹44,46,656 for FY 2017-18 is under appeal, with no provision recognised. No insolvency applications were made by or against the company during FY2025-26.

What to watch

Bottom line: This is a fast-growing company with clean audit opinions and no pledging, but the cash story is the weak link, six years of cumulative negative operating cash flow against positive profit, funded by short-term borrowings. The risk character is earnings quality: receivables are stretching, bank-submitted asset statements don't match the books, and the audit trail has date and opinion inconsistencies. Watch whether the new facility and the Ricardo acquisition convert into cash-generating revenue, and how the qualified-opinion discrepancy resolves.