BSEGarnet International LtdMediumNeutral
Announced Sat, 30 May · 17:16 IST

Outcome of Board Meeting - Results

Qualified OpinionEmphasis Of MatterRelated Party TransactionsNegative Operating CashflowResults View source PDF

Price

Loading chart…

▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
-1.7%1-day move
₹58.21
prior close
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-1.7-2.2-0.6+2.2+4.8+22.0+19.8+11.0
Up moveDown movePending
AI summary

Garnet International Ltd reported standalone net profit of Rs. 330.87 lakhs for FY2026, a significant jump from Rs. 9.73 lakhs in FY2025. On consolidated basis, the company posted profit of Rs. 474.75 lakhs compared to a loss of Rs. 153.46 lakhs in the previous year. The auditors issued a qualified opinion on both standalone and consolidated results citing non-compliance with Section 186 of the Companies Act - the company failed to make interest provisions on inter-corporate loans of Rs. 966.80 lakhs (year-end balance Rs. 1,112.80 lakhs) and interest-free loans to subsidiary. Additionally, the company carries regulatory classification issues as a Type I-NBFC. Emphasis of matter was raised on Rs. 228.71 lakhs in trade receivables from two parties under NCLT with no provisioning. Cash flow from operations remained negative.

Likely market impact

The qualified audit opinion and regulatory compliance issues raise significant governance concerns despite improved profitability. Negative operating cash flows and unreconciled balances add to investor risk. The stock may face selling pressure due to auditor qualification.