Monolithisch India Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Monolithisch India Ltd’s FY2025-26 record carries an unqualified audit opinion, but the year is marked by a series of related-party transactions, accounting-policy shifts, and disclosure gaps that a retail investor should read closely. The company’s cash conversion is weak, its revenue quality is obscured by an unreconciled customer-mix shift, and its governance shows signs of churn.

Key findings

  1. Promoter-family entities sold Mineral India Global to the company for \~₹18 crore, funded by an interest-free MD loan, while IPO proceeds were routed as a ₹9.29 crore loan to another subsidiary Major - The Board approved the acquisition of Mineral India Global Private Limited from promoter-family entities at a NAV-based valuation of \~₹18 crore as on 30.09.2025. The purchase was funded by an unsecured, interest-free ₹18 crore loan from Managing Director Harsh Tekriwal, who confirmed the funds were his own. Separately, the company granted a ₹929 lacs loan to subsidiary Metalurgica India Private Limited out of IPO proceeds, per the Prospectus dated 17 June 2025.
  2. Revenue quality is obscured by a single-customer mix shift to SGB Limited and unreconciled volume-price-revenue disclosures Major - In Q1 FY27, SGB Limited contributed \~50% of revenue, up from \~15% in Q4 FY26, but the stated \~39.4% volume share does not reconcile with the \~50% revenue contribution. Management’s stated Q1 FY27 revenue of INR47 crores and average realization of \~INR9,000 per ton imply \~52,222 tons, leaving no room for the separately disclosed trading revenue of INR3-3.5 crores for additives and INR1-1.5 crores for other trading. Trade receivables are subject to confirmation and reconciliation, with management believing realisable values will not be less than stated values.
  3. A mid-year depreciation method change and a freight reclassification both flatter reported profitability Major - Monolithisch India switched depreciation on Plant & Machinery under OEM AMC from WDV to SLM effective 1 January 2026, reducing depreciation and increasing profit before tax by ₹20.71 lakhs for the quarter, half year and year ended 31 March 2026. Management reclassified INR4-6 crores of freight inward from raw material cost to other expenses in Q1 FY27, without providing the exact figure or prior period comparison. Management attributed the Q4 FY26 tax rate of 18.7% to “some DTA or DTL” and stated “I’m not aware of what tax rates should be there”.
  4. Operating cash flow lags reported profit across both years, while IPO capex deployment is incomplete Major - Net cash from operating activities was 13.79 crore for the year ended 31.03.2026 versus 4.01 crore in the prior year, against PAT of ₹23.03 crore in FY26 and ₹14.49 crore in FY25, giving CFO/PAT of 0.60x and 0.28x respectively. Of the INR44.90 crores IPO capex allocation, INR28.79 crores has been deployed, with INR15.69 crores remaining, to be utilized in a phased manner through the remainder of FY27; no cost overrun assessment was provided. The greenfield project’s commercial production is targeted from 23rd-24th September 2026, but no revised cost estimates or confirmation that the INR44.90 crores allocation remains sufficient have been disclosed.
  5. The group’s consolidated reporting conceals standalone-vs-subsidiary profit, debt, and utilization splits Major - During FY2025-26, the company had two subsidiaries, Mineral India Global Private Limited and Metalurgica India Private Limited, and no joint ventures or associates. The auditor’s Other Matter states that consolidation of Mineral India Global relied on management-certified financials for the period up to the acquisition date. Management states Q1 FY27 revenue of INR47 crores, PAT of INR10 crores, and EBITDA of INR13 crores are “consolidated,” but does not disclose the standalone vs. subsidiary split.
  6. A second joint statutory auditor was added mid-year via EGM, while the internal auditor’s tenure ended without stated replacement Major - M/s R K Jagetiya & Co. was appointed as Joint Statutory Auditors at an EGM held 8 November 2025 for one year. The Board proposes re-appointment of M/s R K Jagetiya & Co. for a further three consecutive years from the conclusion of the 8th AGM. CA Riya Kumari’s tenure as Internal Auditor ended effective 01.05.2026, with no replacement disclosed.
  7. Promoter control is concentrated and stable, but remuneration disclosure is incomplete and a sudden CFO change replaced a promoter-CFO with a 3-year-experience internal hire Minor - Promoter shareholding stood at 74.27% in the latest year, up 0.66 percentage points year-on-year, with pledge at 0.00% both currently and one year ago. Director remuneration disclosed in the standalone financial statements does not include gratuity provision or PF and other fund contributions relating to directors and KMPs. Prabhat Tekriwal resigned as Chief Financial Officer effective 04.09.2026, and Supriya Kumari, a Chartered Accountant with 3 years’ experience, was appointed CFO effective the same date.

What to watch

Bottom line: This is an audited record with a stable promoter holding and no pledged shares, but the year’s transactions and disclosures leave the reader with more questions than answers. The risk sits in the opacity of related-party fund flows, the unreconciled revenue story, and the incomplete picture of where cash is being deployed. Watch the Q2 FY27 results and the greenfield commissioning date to see whether the disclosed numbers start to add up.