Approval of Standalone Audited Financial Results for the Quater and Year ended 31, March 2026.
Awaiting price reaction for this filing.
Konark Synthetic Ltd reported standalone revenue of ₹4,662.34 Lakhs for FY26, marginally declining from ₹4,673.56 Lakhs in FY25. The company turned profitable with PBT of ₹11.17 Lakhs and PAT of ₹10.55 Lakhs, recovering from losses of ₹203.51 Lakhs (PBT) and ₹308.28 Lakhs (PAT) in the previous year. EPS stood at ₹0.18 per share. The auditor issued an unmodified opinion but included an Emphasis of Matter regarding ₹711.18 Lakhs outstanding from Mudra Denims (under CIRP) with only partial impairment provision. Significant contingent liabilities of ₹7,306 Lakhs exist as corporate guarantees for subsidiary India Denim Limited (under insolvency) and associate company, exceeding the company's total net worth. The company has negative equity of ₹564.86 Lakhs.
While the company returned to profitability, shareholders should note the negative equity position and massive contingent liabilities that could materially impact the company if invoked. The clean audit opinion provides some comfort, but the going concern risks remain significant.