Superhouse Ltd's FY2025-26 consolidated record carries a qualified audit opinion for the first time, driven entirely by five recurring qualifications at a Spanish subsidiary whose net worth is "substantially eroded" and which absorbed a first-ever ₹402.50 Lacs impairment. Corporate guarantees for group entities more than doubled to ₹3,305.90 Lacs, and cash generation has decoupled from reported profit, with operating cash flow at 89x consolidated PAT. The statutory auditor has held the mandate since FY2022-23 with no resignation.
Key findings
- Consolidated audit opinion turned qualified on a loss-making Spanish subsidiary
Critical- The FY2025-26 consolidated statements received a qualified opinion, "except for the possible effects of the matter described in the Basis for Qualified Opinion section", arising solely from the audit report on Linea De Seguridad, S.L., a wholly owned subsidiary. The subsidiary's auditor issued five qualifications for FY2025, including an inability to audit the stock area and €623,033 of unverified tax credits. Its net worth is "substantially eroded due to operational losses," and a first-ever impairment of ₹402.50 Lacs was recognised. - Working-capital statements filed with banks have disagreed with books for five straight years
Major- CARO clause (ii)(b) reported in FY2022 through FY2026 that quarterly returns/statements filed with banks were NOT in agreement with books of accounts. The FY2026 accounts disclose a working capital limit of ₹20,900 Lacs from PNB with differences between book values and quarterly statements disclosed. On 30 July 2026, Acuité changed the outlook to Negative, reaffirming the long-term rating at "ACUITE A- / Negative". - Cash generation has decoupled from reported profit
Major- Operating cash flow of ₹52.73 crore in FY26 was 89.37x consolidated PAT of ₹0.59 crore, versus CFO/PAT of 2.20x in FY25. Consolidated PAT of ₹4.75 crore was 196% lower than standalone PAT of ₹14.07 crore. Dividend remained at ₹0.80 per share for FY2024, FY2025, and FY2026, unchanged from FY2020, despite CFO rising from ₹20.72 crore in FY24 to ₹52.73 crore in FY26. - Related-party revenue fell over three years, with an FY25 rise
Major- Revenue from related parties in standalone statements fell from ₹8,639.51 Lacs in FY23 to ₹5,046.89 Lacs in FY24, rose to ₹5,904.38 Lacs in FY25, then dropped to ₹1,280.72 Lacs in consolidated FY26 statements. Every annual report from FY2019-20 through FY2025-26 states all related party transactions were arm's length and no amount was written off or provided as doubtful debts. - A sprawling, loss-making foreign subsidiary network
Major- Superhouse Ltd had eight subsidiaries, two step-down subsidiaries, and four associates as of FY2025-26. Six subsidiaries audited by other auditors for FY2024-25 had net loss after tax of Rs. (-) 421.73 Lacs, while two unaudited subsidiaries certified by management had net loss of Rs. (-) 270.06 Lacs. On 13 August 2026, the company disclosed a proposed sale or liquidation of its French subsidiary LA Compagnie Francaise De Protection SARL, with no buyer identified as of that date. - A single family, the Amins, holds all key board positions
Minor- Mr. Mukhtarul Amin (Chairman & MD), Mr. Zafarul Amin (Joint MD), Mr. Mohammad Shadab (Deputy MD), Mrs. Shahina Mukhtar and Mr. Yusuf Amin are relatives, a relationship disclosed in every annual report from FY2019-20 through FY2025-26. The Chairman, aged over 70, was re-appointed for 3 years effective 1 October 2025 by special resolution, and a special resolution made him a Non-Retiring Director. Promoter shareholding was 54.88% with zero pledge. - Repeated exchange-imposed fines for LODR filing failures
Minor- BSE and NSE imposed fines aggregating ₹2,36,000 for delay in submission of Audited Financial Results for the quarter and FY ended 31 March 2025. A fine of ₹2,360 was imposed for an alleged one-day delay in submission of the Annual Report for FY 2024-25, communicated 30th October 2025. A prior-year fine for non-compliances of LODR Regulations 17, 18, 19(1) and 20(2) was waived during FY2025-26 on representation to BSE/NSE. - Stable auditor tenure with no resignation
Clean- M/s Kapoor Tandon & Co. was appointed as Statutory Auditors for 5 consecutive years at the AGM held September 30, 2022, replacing M/s Rajeev Prem & Associates whose term expired due to mandatory rotation. CARO clause (xviii) in the FY2025-26 standalone audit report states "no resignation of statutory auditors during the year". The secretarial auditor was appointed for a second five-year term from FY2025-26 to FY2029-30.
What to watch
- French subsidiary disposal. Outcome of the proposed sale/transfer or liquidation of LA Compagnie Francaise De Protection SARL, disclosed 13 Aug 2026 with no buyer identified as of that date.
- Acuité rating review. Next rating action following the 30 July 2026 outlook change to Negative, expected in the FY2026-27 annual rating cycle.
- Linea De Seguridad qualifications. Whether the stock-area qualification and the other four are repeated or resolved in the FY2026-27 consolidated audit report.
- Further impairment. Whether the FY2026-27 annual report recognises further impairment on the Linea De Seguridad SLU investment, given the first-ever impairment of ₹402.50 Lacs was recognised in FY2025-26.
Bottom line: This is a disclosed and audited record with a stable auditor and zero promoter pledge. The risk sits in the subsidiary network: a qualified opinion, a first-ever impairment, and a 196% consolidated-to-standalone PAT gap all trace to Linea De Seguridad SLU, whose net worth is "substantially eroded." Watch whether the FY2026-27 audit repeats those qualifications, and whether the French subsidiary sale finds a buyer.