KHANDSEBSEKhandwala Securities LtdHighNeutral
Announced Thu, 21 May · 15:20 IST

Please find enclosed Outcome of Board Meeting held on May 21, 2026

Qualified OpinionPat NegativeRevenue DeclineNegative Operating CashflowGoing ConcernResults View source PDF

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AI summary

Khandwala Securities Ltd reported a net loss of Rs. 127.03 lakhs for FY2025-26 compared to a loss of Rs. 79.92 lakhs in the previous year. Revenue from operations declined to Rs. 789.44 lakhs from Rs. 953.93 lakhs (17% drop). The auditors from Pravesh Agarwal & Associates issued a Qualified Opinion on both standalone and consolidated results due to two unresolved issues: (1) Rs. 216.69 lakhs application money for share purchases outstanding for 288 months and currently under litigation in Mumbai High Court, and (2) Rs. 350 lakhs in long-term deposits with uncertain recoverability as no provisions have been made. Operating cash flow turned negative at Rs. 204.48 lakhs. The company reappointed M/s. Savina & Pooja as internal auditor for FY2026-27.

Likely market impact

The qualified audit opinion and unresolved long-standing receivables totaling Rs. 566.69 lakhs signal elevated credit risk. Revenue decline and negative operating cash flow further weaken the financial position, raising going concern concerns despite the company maintaining a net worth of Rs. 2,837.21 lakhs.