Disclosure of Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended 30.06.2025 along with Independent Auditor''s Review Report
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Awaiting price reaction for this filing.
Kandagiri Spinning Mills reported standalone revenue of Rs. 62.15 lakhs for Q1 FY26, sharply higher than Rs. 10.65 lakhs in Q1 FY25, mainly from yarn trading. However, the company posted a much wider loss before tax of Rs. 118.82 lakhs (vs. a Rs. 37.70 lakh loss a year ago), driven by high finance costs of Rs. 41.66 lakhs on unsecured loans and a one-time gratuity payout to employees. Other equity stands at a negative Rs. 1,111 lakhs, meaning net worth is fully eroded. The auditor issued a qualified conclusion, flagging material uncertainty about the company's ability to continue as a going concern. Promoters have pledged to keep infusing funds, and the board is continuing to adopt the going concern basis despite the auditor's qualification.
Negative for shareholders — losses are widening, net worth is wiped out, and the auditor has flagged going concern risk, which could weigh on the stock. However, promoter fund support and a jump in trading revenue provide some reassurance, though the business remains loss-making and small-scale.