Financial results for the quarter and year ended 31st March, 2025.
Awaiting price reaction for this filing.
Shah Foods Ltd reported audited financials for FY25 with total revenue from operations of Rs. 378.22 lakhs versus Rs. 0.07 lakhs in FY24, a sharp jump driven mainly by new business activity. The company swung to a net profit of Rs. 10.80 lakhs for FY25 compared to a loss of Rs. 21.91 lakhs in FY24, with EPS at Rs. 1.81 versus negative Rs. 3.67. Q4 FY25 standalone revenue was Rs. 229.60 lakhs and net profit Rs. 17.23 lakhs. However, the balance sheet remains weak: shareholders' equity is negative at Rs. -56.42 lakhs (negative reserves of Rs. -116.17 lakhs), borrowings stand at Rs. 126.79 lakhs, and trade receivables of Rs. 231.18 lakhs and trade payables of Rs. 184.16 lakhs have surged sharply. Cash flow from operations was negative at Rs. -18.04 lakhs. The board also appointed a new Secretarial Auditor for 5 years and re-appointed the Internal Auditor for FY26.
While the return to profitability and revenue jump are positive on the surface, the negative net worth, negative reserves, rising debt, and negative operating cash flow raise serious going-concern concerns for shareholders. The stock may remain volatile and sentiment cautious until equity turns positive and operating cash flow improves.