Approval of financial results for the quarter ended on June 30, 2025
Awaiting price reaction for this filing.
Konark Synthetic's board approved standalone Q1 FY26 results showing revenue from operations of ₹1,230.08 lakhs, up sharply from ₹502.20 lakhs in Q1 FY25 (about 145% growth). Total income stood at ₹1,243.08 lakhs. However, the company reported a small loss after tax of ₹0.95 lakhs versus a profit of ₹2.40 lakhs a year ago, with EPS at ₹(0.02). Exceptional item of ₹3.98 lakhs came from sale of fixed assets. The board also re-appointed Mr. Shonit Dalmia as Managing Director for three more years. The auditor flagged serious concerns: ₹711.18 lakhs in stuck receivables from Mudra Denims (under insolvency), ₹93.47 lakhs from Shubhlakshmi Polyester with no provision, and a corporate guarantee of ₹2,706 lakhs given for subsidiary India Denim Limited (under CIRP and classified as NPA) — which the auditor noted is much higher than the company's net worth.
Strong topline jump is positive, but bottom line remains marginal/negative and the auditor's emphasis on a guarantee exposure far exceeding net worth raises serious solvency and going-concern red flags for shareholders. Watch closely for any recovery or crystallization of the India Denim guarantee liability.