Approval of Financial Results for the quarter and nine months ended on December 31, 2025
Awaiting price reaction for this filing.
Konark Synthetic's board approved standalone unaudited results for Q3 FY26 (revenue Rs. 1,231.72 lakh, PAT Rs. 4.18 lakh) and 9M FY26 (revenue Rs. 3,447.29 lakh, up ~12% YoY; PAT Rs. 16.45 lakh, up ~25% YoY). Exceptional items of Rs. 203.51 lakh loss (mainly sale of fixed assets) were recorded in 9M. The auditor flagged a Rs. 2,706 lakh corporate guarantee given for subsidiary India Denim, which is under insolvency and whose loan accounts are NPA — the auditor explicitly noted this exposure is "much higher than the total net worth of the company." Long-outstanding receivables of Rs. 533.39 lakh from Mudra Denims (also under insolvency) remain unrecovered, with no legal action initiated. No consolidated results were prepared as the subsidiary is under CIRP.
Despite marginal profitability, the Rs. 2,706 lakh guarantee exposure exceeding the company's net worth is a severe going-concern red flag for shareholders, making the stock highly risky. Weak subsidiary positions and unrecovered large receivables add to the downside risk.