Financial Results for the Quarter and Half-year ended September 30, 2025
Awaiting price reaction for this filing.
Garodia Chemicals reported zero revenue from operations for Q2 and H1 FY26, with all income (₹405.88 lakhs for the half year) coming from one-time settlement of loans owed by promoter-related entities (Mr. Mahesh Garodia, Mr. Nishant Garodia, and M/s Garodia Sons Pvt Ltd) under an NCLT-approved Base Resolution Plan. This loan settlement turned a small loss of ₹3.12 lakhs in H1 FY25 into a reported profit of ₹396.68 lakhs (EPS of ₹5.51) for H1 FY26, but there is no underlying operating business. The auditor flagged that the books are no longer prepared on a going-concern basis because management has decided to cease the company's business. The balance sheet shows negative other equity of ₹(793.06) lakhs, total assets of just ₹9.39 lakhs, and borrowings reduced sharply from ₹481.87 to ₹75.99 lakhs after the settlement.
This is a wind-down scenario, not a turnaround — the 'profit' is a one-time accounting event from loan settlement, not from operations. Shareholders should treat the going-concern flag and business cessation as the main story; the stock price and residual value will depend on any remaining asset realization and creditor settlements, not future earnings.