Financial Results September 2025
Awaiting price reaction for this filing.
The company reported revenue from operations of Rs. 205.17 lakhs for H1 FY26 (up from negligible Rs. 0.91 lakhs total income in FY25), but still posted a loss of Rs. 19.55 lakhs (improved from FY25 loss of Rs. 129.72 lakhs), with basic EPS at negative Rs. 0.69. The auditor issued a qualified conclusion, flagging major compliance issues: loans and advances of Rs. 5,522.07 lakhs granted without shareholder approval (violating Sections 185/186) and borrowings of Rs. 729.97 lakhs from various parties (violating Sections 73-76, i.e., illegal acceptance of deposits). The auditor also expressed inability to verify the existence of inventory worth Rs. 1,065.08 lakhs (no physical verification) and recoverability of trade receivables worth Rs. 1,467.58 lakhs (no debtor confirmations). An Emphasis of Matter paragraph was added covering non-payment of TDS/TCS dues of Rs. 10.88 lakhs, absence of edit log in accounting software, and inventory being valued only at cost (non-compliant with Ind AS-2).
Negative for shareholders — the qualified audit opinion with multiple regulatory violations, unrecoverable-looking loans, and weak internal controls signal serious governance and going-concern risks that could weigh heavily on the stock and invite further regulatory scrutiny.