Udaan's Auditors Flag Going-Concern Doubt as FY26 Loss Narrows to ₹851.5 Crore

Udaan's auditors flagged "material uncertainty" over its ability to continue as a going concern in the FY26 accounts, even as the B2B commerce company cut its net loss to ₹851.5 crore from ₹1,055.4 crore, Inc42 reported on Oct. 15.

Revenue grew 12.6 percent to ₹5,134 crore from ₹4,561 crore, per both Inc42 and Entrackr, which each read the consolidated filing. It is the first double-digit growth year in the run Inc42 lists: FY23 down about 40 percent, FY24 up 1.7 percent and FY25 down about 20 percent.

What the auditors saw on the balance sheet

Inc42 says current liabilities exceeded current assets by ₹1,391 crore, and total liabilities exceeded total assets by ₹790.9 crore. The auditors' going-concern language sits on top of those two gaps. Udaan said it received additional funding after the year closed and expects revenue growth and cost cuts to improve operating cash flows, according to Inc42.

Entrackr, which does not mention the audit remark, attributes the filing to Trustroot Internet, Udaan's Singapore group company. It flags a definitional problem: it uses "gross revenue" and GMV, gross merchandise value, the total value of transactions, interchangeably for the ₹5,134 crore, while Inc42 calls it operating revenue. The two outlets agree on the number and disagree on what it measures, so the loss should not be set against it as a margin until the notes are read.

1. FY232075 ₹ crore
2. FY241674.1 ₹ crore
3. FY251055.4 ₹ crore
4. FY26851.5 ₹ crore

Source: Entrackr and Inc42, Oct. 15, 2026

The $170 million note and the Singapore court

The risk is outside India. Inc42 reports that Trustroot Internet Pvt Ltd, the offshore holding entity, defaulted on $170 million of compulsorily convertible notes due June 30. Three creditors, Tor Investment Management, Samena Capital and Arena Investors, are in proceedings against it in the Singapore High Court.

Udaan told Inc42 the proceedings concern its offshore holding company and will not have a material impact on its operations in India. A company statement is the only source for that claim; the filing figures do not test it either way, since the accounts are consolidated across both.

A $160 million financing proposed in July, made up of fresh equity, new debt and debt-to-equity conversion, is the route out. Udaan's Series G of $114 million closed in June 2025 at a 59 percent valuation dip, per Inc42. Neither report says whether the $160 million has closed.

Where the money went

Line	FY26	FY25
Employee benefits	₹347.5 crore	₹500 crore
ESOP expense	₹140 crore	₹280 crore
Material expenses	₹4,859 crore	₹4,367 crore
Finance costs	₹247 crore, up 33.5%	not stated

Employee benefit expense fell 30 percent. Finance costs rose 33.5 percent, which is the line a debt restructuring changes. Entrackr says Udaan exited lifestyle and general merchandise to focus on groceries and essentials, and that it expects profitability at the end of 2027 or in the first quarter of 2028.

Vishnu Menon, Udaan's senior vice president, is the source for the operating claims Inc42 carries: revenue compounding at about 25 percent over 10 quarters, contribution margin up nearly 500 basis points and EBITDA burn down about 70 percent. They are company claims, not audited figures.

Two deals tie Udaan to the wider Indian market. Swiggy agreed to sell its LYNK retail distribution business to Udaan for ₹500 crore in an all-share deal and plans a further ₹75 crore into Udaan's parent, per Inc42. Entrackr adds that Trustroot bought Info Edge's 26.14 percent Shopkirana stake for $32.97 million in March 2026. Compare how other Indian companies treat exits: Zetwerk's founders and VCs are selling ₹2,182 crore into a public issue, and Infotech bought Zluri at an undisclosed price. The next event to watch is the Singapore High Court hearing on the $170 million notes, for which neither report gives a date.