Financial Results for the quarter and half year ended on September 30, 2025
Awaiting price reaction for this filing.
Konark Synthetic Limited reported standalone Q2 FY26 revenue of ₹985.49 lakhs (down from ₹1,230.08 lakhs in Q1 FY26) and H1 FY26 revenue of ₹2,215.57 lakhs, up about 44% from ₹1,540.53 lakhs in H1 FY25. Despite the top-line growth, the company posted a loss before exceptional items of ₹53.70 lakhs for H1 FY26, and only swung to a marginal profit before tax of ₹14.57 lakhs (PAT ₹12.27 lakhs) thanks to exceptional gains of ₹68.27 lakhs from the sale of fixed assets. The auditor flagged two material matters: ₹533.39 lakhs of net long-outstanding receivables from Mudra Denims (under CIRP) with no legal action initiated, and a corporate guarantee of ₹2,706 lakhs given for subsidiary India Denim, which is also under CIRP and classified as NPA. No consolidated results were prepared because the subsidiary's financials are unavailable, and associate Konark Infratech ceased to be an associate from October 30, 2024.
The auditor explicitly warned that the corporate guarantee obligation is much higher than the company's net worth (which is negative at ₹(566.51) lakhs), creating material financial risk. While headline revenue grew sharply, core operations remain loss-making and profits depend entirely on one-off asset sale gains, making this a high-risk stock with significant contingent liability exposure.