Approval of financial results for the quarter and half year ended on September 30, 2025
Awaiting price reaction for this filing.
Konark Synthetic's board approved its unaudited standalone results for Q2 and H1 FY26 (ended Sept 30, 2025). No consolidated results were filed because associate Konark Infratech ceased to be an associate in Oct 2024 and subsidiary India Denim Limited is under Corporate Insolvency Resolution Process (CIRP) since Sept 2023, with its board suspended and an Interim Resolution Professional appointed. Standalone revenue from operations for H1 FY26 was Rs. 2,215.57 lakhs vs Rs. 1,540.53 lakhs in H1 FY25 (about 44% growth), but H1 FY26 profit after tax was only Rs. 12.27 lakhs (vs Rs. 17.01 lakhs). Q2 FY26 PAT was Rs. 13.22 lakhs on revenue of Rs. 985.49 lakhs, with an exceptional loss item from sale of fixed assets. The auditor flagged long-outstanding trade receivables of Rs. 533.39 lakhs (net) from Mudra Denims (also under CIRP) and a Rs. 2,706 lakh corporate guarantee given for subsidiary India Denim — described as far exceeding the company's net worth of just Rs. 14.29 lakhs and likely to have a material impact.
Negative for shareholders: the company's tiny net worth (Rs. 14.29 lakhs) is dwarfed by a Rs. 2,706 lakh guarantee to its insolvent subsidiary, and the auditor warns this could materially hurt financial position — a serious solvency red flag. Revenue growth looks decent on paper, but profitability remains wafer-thin, and the subsidiary situation adds uncertainty to the stock.