Eros International Media Limited has informed the Exchange regarding Outcome of Board Meeting held on May 14, 2025.
Awaiting price reaction for this filing.
Eros International Media's board approved its unaudited financial results for the quarter ended June 30, 2024 on May 14, 2025, with a significant delay. On a consolidated basis, the company swung to a profit of Rs 13,787 lakhs (from a loss of Rs 28,618 lakhs a year ago), but this was almost entirely driven by a one-time reversal of an impairment of Rs 15,431 lakhs related to a film licensing deal with Globus Ent FZE. Standalone results remained in the red with a loss of Rs 665 lakhs, and net worth has been fully eroded. The statutory auditor (Haribhakti & Co. LLP) issued a qualified conclusion on the standalone results and could not express any conclusion on the consolidated results, flagging long-overdue related-party receivables of over Rs 12,000 lakhs from Eros Worldwide FZE, and material uncertainty on the company's ability to continue as a going concern. The board also appointed Patni Mandhana & Associates as internal auditor, C.R. Bhagwat as secretarial auditor for FY26, and Walker Chandiok & Co. LLP for transfer pricing services for FY25.
This is a deeply negative filing for shareholders. The headline profit is misleading and driven by a non-cash impairment reversal rather than real business recovery. The auditor's qualified opinion, the going-concern warning, ongoing SEBI investigation and Enforcement Directorate search (Feb 2025), and the standalone net worth erosion paint a picture of serious financial and regulatory stress. Investors should expect continued stock-price weakness and heightened risk of further adverse disclosures.