Quality Enviro Engineers Annual Reports, Balance Sheet and Financials

 Quality Enviro Engineers Limited Standalone Balance Sheet (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Equity
Share Capital	1.18	1.18
Reserves & Surplus	31.38	26.35
Non-Current Liabilities
Long Term Borrowings	1.12	1.26
Long Term Provisions	0.20	0.20
Current Liabilities
Short Term Borrowings	11.60	9.14
Short Term Provisions	2.32	1.96
Trade Payables
Dues Of Micro And Small Enterprises	0.21	0.09
Dues Of Other Creditors	22.99	17.80
Other Current Liabilities	3.62	5.02
Total Equity And Liabilities	74.61	63.00
Non-Current Assets
Tangible Assets	4.09	1.33
Intangible Assets	0.03	0.03
Capital Work In Progress	-	2.31
Deferred Tax Asset (Net)	0.03	0.05
Non-Current Investments	-	0.02
Other Non-Current Assets	10.92	10.68
Current Assets
Inventories	14.38	1.09
Trade Receivables	33.65	37.49
Cash & Cash Equivalents	3.64	4.13
Short Term Loans & Advances	4.25	3.56
Other Current Assets	3.64	2.31
Total Assets	74.61	63.00

 

Quality Enviro Engineers Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Income
Revenue from Operations	63.01	51.52
Other Income	1.76	0.75
Total Income	64.76	52.27
Expenses
Cost of Material Consumed	51.62	31.83
Changes in Inventories of Finished Goods, WIP and Stock-in-trade	-10.61	0.00
Employee Benefit Expenses	3.96	2.16
Financial Expenses	1.32	0.98
Depreciation and Amortization Expenses	0.20	0.09
Other Expenses	11.35	11.56
Total Expenses	57.83	46.63
Profit before exceptional and extraordinary items and tax	6.93	5.64
Exceptional Items	0.06	0.12
Profit before Tax	6.87	5.52
Current Tax	1.83	1.59
Deferred Tax	0.02	0.00
Profit/(Loss) for the Period	5.03	3.93
Earnings per Equity Share
Basic & Diluted	42.66	34.41

Quality Enviro Engineers Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Cash From Operating Activities
Net Profit Before Tax	6.87	5.52
Adjusted For:
Depreciation & Amortization	0.20	0.09
Misc. Expenses Written Off	0.01	0.01
Increase/Decrease In Provision	0.06	0.45
Loss/(Profit) On Sale Of Investment	-0.01	-
Finance Costs	1.32	0.98
Interest Income	-1.01	-0.67
Operating Profit Before Working Capital Changes	7.43	6.37
Changes In Working Capital:
(Increase)/Decrease In Inventories	-13.29	0.47
(Increase)/Decrease In Trade And Other Receivables	1.82	-18.22
Increase/(Decrease) In Trade Payables	5.30	3.23
Increase/(Decrease) In Current Liabilities	-1.40	0.48
Cash Generated From Operating Activities	-0.13	-7.67
Income Tax Expense	1.53	1.17
Net Cash From Operating Activities	-1.66	-8.84
Cash Flow From Investing Activities
Purchase Of Property, Plant & Equipment And Intangible Assets	-0.64	-2.76
(Increase)/Decrease In Non-Current Assets	-0.21	-9.92
Interest Received	1.01	0.67
Net Cash Used In Investing Activities	0.16	-12.01
Cash Flow From Financing Activities
Issue Of Equity Share Capital Including Share Premium	-	13.77
Proceeds From/(Repayment Of) Long Term Borrowings	-0.14	0.46
Proceeds From/(Repayment Of) Short Term Borrowings	2.46	7.44
Payment Of Interest	-1.32	-0.98
Net Cash From Financing Activities	1.00	20.68
Net Increase/Decrease In Cash	-0.49	-0.16
Add: Opening Cash And Cash Equivalents	4.13	4.29
Closing Cash And Cash Equivalents	3.63	4.13

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

The company 's net cash flow from operating activities remained negative at ₹1.66 crore in FY 2025–26, compared to a negative ₹8.84 crore in FY 2024–25, reflecting a significant improvement in operating cash flow. Net profit before tax increased from ₹5.52 crore to ₹6.87 crore, indicating improved profitability. Operating profit before working capital changes also increased from ₹6.37 crore to ₹7.43 crore. However, a substantial increase in inventories resulted in a cash outflow of ₹13.29 crore, which adversely affected cash generation. This was partially offset by a ₹1.82 crore inflow from trade and other receivables and a ₹5.30 crore increase in trade payables. Despite the improvement, negative operating cash flow indicates continued working capital requirements and highlights the need for better inventory management and cash conversion efficiency.

 

Cash Flow from Investing Activities

The company reported positive net cash flow from investing activities of ₹0.16 crore in FY 2025–26, compared to a negative ₹12.01 crore in FY 2024–25, indicating a substantial reduction in investment-related cash outflows. Expenditure on property, plant, equipment and intangible assets decreased from ₹2.76 crore to ₹0.64 crore, reflecting lower capital expenditure during the year. Additionally, cash outflow related to non-current assets declined significantly from ₹9.92 crore to ₹0.21 crore. Interest income received increased from ₹0.67 crore to ₹1.01 crore, supporting investing cash flows. The positive investing cash flow primarily reflects reduced capital expenditure and lower investment in non-current assets rather than proceeds from asset disposals, suggesting a more conservative investment approach during the year.

 

Cash Flow from Financing Activities

The company 's net cash flow from financing activities stood at ₹1.00 crore in FY 2025–26, compared to ₹20.68 crore in FY 2024–25, representing a sharp decline in financing inflows. During the previous financial year, the company raised ₹13.77 crore through the issuance of equity share capital, including share premium, whereas no fresh equity capital was raised in FY 2025–26. Short-term borrowings increased by ₹2.46 crore compared to ₹7.44 crore in the previous year, indicating continued but reduced dependence on short-term debt financing. The company also repaid ₹0.14 crore of long-term borrowings, while interest payments increased from ₹0.98 crore to ₹1.32 crore. The decline in financing cash inflows was mainly attributable to the absence of fresh equity funding and lower borrowing proceeds, indicating reduced external fund mobilisation compared to the previous year.

 

Net Change in Cash and Cash Equivalents

The company recorded a net decrease in cash and cash equivalents of ₹0.49 crore in FY 2025–26, compared to a decrease of ₹0.16 crore in FY 2024–25. Closing cash and cash equivalents declined from ₹4.13 crore as of 31 March 2025 to ₹3.63 crore as of 31 March 2026. Although the company substantially reduced its operating cash outflow and investment-related expenditure, the positive cash flow from financing activities was insufficient to fully offset the operating cash deficit. The reduction in cash balances indicates a moderate decline in the company 's immediate liquidity position, highlighting the importance of strengthening internally generated cash flows and managing working capital requirements effectively.

Financial ratios of Quality Enviro Engineers Limited

Particulars	31-03-2026	31-03-2025
Current ratio	1.46	1.43
Debt equity ratio	0.39	0.38
Debt service coverage ratio	4.32	2.42
Return on Equity Ratio	16.74%	21.04%
Inventory Turnover Ratio	5.30	24.08
Trade Receivables turnover ratio	1.77	1.82
Trade payables turnover ratio	2.64	1.90
Net Capital Turnover Ratio	3.77	4.41
Net profit ratio	7.98%	7.63%
Return on Capital employed	24.35%	22.85%

Summary of the Financial Ratios for the years 2026 and 2025:

Current Ratio

The current ratio of Quality Enviro Engineers Limited improved slightly from 1.43 in FY 2024–25 to 1.46 in FY 2025–26, indicating a marginal improvement in the company 's short-term liquidity position. This ratio suggests that the company had ₹1.46 in current assets for every ₹1 of current liabilities, compared to ₹1.43 in the previous year. Although the improvement indicates a slightly better ability to meet short-term obligations, the ratio remains below the commonly preferred benchmark of 2:1. The company should continue to strengthen its working capital management, particularly by improving inventory movement and cash generation, to maintain adequate liquidity.

 

Debt-Equity Ratio

The debt-equity ratio increased marginally from 0.38 in FY 2024–25 to 0.39 in FY 2025–26, indicating a slight increase in the company 's reliance on debt financing relative to shareholders ' funds. The ratio suggests that the company had ₹0.39 of debt for every ₹1 of equity in FY 2025–26. Despite the marginal increase, the ratio remains relatively moderate, indicating a reasonable balance between borrowed funds and shareholders ' capital. Overall, the company 's leverage position appears manageable, although continued monitoring of borrowings and finance costs is important to maintain long-term financial stability.

 

Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio improved significantly from 2.42 in FY 2024–25 to 4.32 in FY 2025–26, indicating a substantial improvement in the company 's capacity to meet its debt repayment and interest obligations. A higher DSCR generally reflects stronger debt-servicing capacity, with the FY26 ratio indicating a considerably greater earnings cushion against debt-related payments. This improvement is a positive sign for lenders and investors, as it suggests a lower risk of difficulty in servicing debt. However, given the negative operating cash flow reported in FY26, it is important to assess whether the earnings supporting this ratio are being converted into actual cash.

 

Return on Equity (ROE) Ratio

The return on equity ratio declined from 21.04% in FY 2024–25 to 16.74% in FY 2025–26, indicating a reduction in the company 's ability to generate profits relative to shareholders ' equity. Although the company continued to deliver a positive return, the decline suggests that shareholders ' funds generated a lower percentage return during the year. This movement may reflect changes in profitability, the equity base or both. Overall, the company remains profitable from a shareholders ' perspective, but improving earnings efficiency and the productive utilisation of equity will be important to enhance returns in subsequent years.

 

Inventory Turnover Ratio

The inventory turnover ratio declined sharply from 24.08 in FY 2024–25 to 5.30 in FY 2025–26, indicating a significant slowdown in inventory turnover. This suggests that inventory was converted into sales or consumed in operations less frequently during the year, potentially resulting in a longer inventory holding period and greater funds being tied up in stock. The decline is particularly noteworthy because the cash flow statement also shows a substantial inventory-related cash outflow of ₹13.29 crore in FY26. This may indicate inventory accumulation, slower movement of stock or changes in the company 's operating cycle. The company should review inventory planning, demand forecasting and stock management to reduce working capital pressure and improve operating efficiency.

 

Trade Receivables Turnover Ratio

The trade receivables turnover ratio decreased slightly from 1.82 in FY 2024–25 to 1.77 in FY 2025–26, indicating a marginal slowdown in the collection of outstanding customer dues. This suggests that the company may be taking slightly longer to convert credit sales into cash. Although the decline is relatively small, slower collections can affect liquidity and increase dependence on external financing for day-to-day operations. The company should strengthen its credit control procedures, follow up on overdue accounts and review customer payment terms to improve collection efficiency and support stronger operating cash flows.

 

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 1.90 in FY 2024–25 to 2.64 in FY 2025–26, indicating that the company settled its trade payables more frequently during the year. This may reflect faster payments to suppliers or changes in the level of purchases and outstanding liabilities. While timely payments can strengthen supplier relationships and support continuity of operations, faster settlement can also increase immediate cash requirements. In view of the company 's negative operating cash flow, it is important to balance supplier payments with available cash resources and negotiate suitable credit terms wherever possible.

 

Net Capital Turnover Ratio

The net capital turnover ratio declined from 4.41 in FY 2024–25 to 3.77 in FY 2025–26, indicating a reduction in the efficiency with which the company utilised its working capital to generate revenue. The lower ratio suggests that each unit of net working capital generated less revenue than in the previous year. This decline may be associated with increased inventory levels or changes in current assets and current liabilities. The movement indicates a need to improve working capital utilisation, particularly by accelerating inventory turnover and ensuring efficient management of receivables and payables. Better capital efficiency would help the company generate more revenue from its available operating resources.

 

Net Profit Ratio

The net profit ratio improved from 7.63% in FY 2024–25 to 7.98% in FY 2025–26, indicating a modest improvement in the company 's ability to convert revenue into net profit. The ratio suggests that the company earned approximately ₹7.98 in net profit for every ₹100 of revenue, compared with ₹7.63 in the previous year. This improvement reflects a positive movement in overall profitability and may indicate better cost control, improved operating efficiency or changes in the income mix. However, the improvement in the profit margin has not translated into positive operating cash flow, highlighting the importance of strengthening cash conversion alongside profitability.

 

Return on Capital Employed (ROCE)

The return on capital employed increased from 22.85% in FY 2024–25 to 24.35% in FY 2025–26, indicating improved efficiency in generating returns from the capital invested in the business. The higher ratio suggests that the company generated a stronger return from its long-term funding sources, including equity and debt. This is a positive indicator of capital utilisation and operating performance. Despite the improvement, the decline in ROE and net capital turnover indicates that the benefits of improved capital returns are not uniform across all measures of financial efficiency. The company should continue focusing on productive capital allocation, cost management and working capital discipline to sustain this performance.