Audited Standalone Financial Results of the Company for the quarter and year ended on March 31, 2025
Awaiting price reaction for this filing.
Aditya Forge reported FY25 revenue from operations of ₹772.46 lakhs, sharply higher than ₹250.25 lakhs in FY24, with net profit jumping to ₹699.34 lakhs from ₹211.77 lakhs. However, the headline profit was largely driven by a one-time gain of ₹1,017.74 lakhs from the sale of fixed assets (likely the windmill/PPE divestment), while core Q4 FY25 actually slipped into a loss of ₹106.59 lakhs. Operating cash flow turned deeply negative at ₹(989.57) lakhs versus ₹574.56 lakhs inflow last year. Total assets collapsed from ₹872.65 lakhs to ₹227.03 lakhs, and other equity deteriorated further to ₹(785.31) lakhs, leaving net worth negative at ₹(354.45) lakhs. The auditors issued a Qualified Opinion due to missing balance confirmations for trade payables, loans and advances, and drew attention to an unresolved income tax notice for which no provision has been made.
Negative net worth, a qualified audit opinion, negative operating cash flow, and a contingent income tax liability are serious red flags for shareholders. The strong reported FY25 profit is non-recurring (asset sale-driven) and does not reflect underlying business health, making the stock risky despite the headline earnings jump.