BSEMishtann Foods LtdHighNeutral
Announced Fri, 13 Feb · 17:51 IST

The outcome of meeting of Board of Directors has been attached herewith.

Qualified OpinionRevenue DeclineContingent Liabilities IncreasedEmphasis Of MatterResults View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The Board of Directors approved Un-Audited Standalone and Consolidated Financial Results for Q3 FY26 on February 13, 2026. The statutory auditor issued a qualified opinion on both sets of results with five repeat qualifications. Key concerns flagged include: a SEBI show-cause notice dated December 5, 2024 alleging fictitious sales/purchase transactions and ₹4,990 lakh mis-utilisation of rights issue proceeds; trade receivables of ₹56,654.71 lakhs with no Expected Credit Loss provision while the company neither paid suppliers nor received customer collections; a GST demand of ₹20,684.38 lakhs (including penalties) treated as contingent liability; and unpaid income tax provisions of ₹5,227.67 lakhs plus a disputed tax demand of ₹11,744 lakhs. Standalone revenue fell sharply to ₹21,203.52 lakhs (9M FY26) from ₹27,543.76 lakhs (9M FY25), with net profit at ₹267.62 lakhs versus ₹486.03 lakhs. Consolidated numbers were propped up by the un-audited UAE subsidiary Grow and Grub Nutrients FZ-LLC, contributing ₹25,695.90 lakhs of net profit for 9M.

Likely market impact

Serious governance and financial credibility risks persist for shareholders. The auditor's qualified opinion, ongoing SEBI probe into alleged fictitious transactions, large contingent tax liabilities, and complete absence of supplier/customer cash flows signal material uncertainty that could weigh on stock sentiment and liquidity. Standalone fundamentals have clearly deteriorated.