Outcome of the Board Meeting held on 14.09.25 to discuss the unaudited half yearly financial result for the quarter ended 30.09.25.
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The Board of Nilachal Refractories approved the unaudited financial results for the quarter and half year ended September 30, 2025. Revenue from operations rose to Rs. 64.53 lakhs in H1 FY26, more than double the Rs. 29.83 lakhs in H1 FY25, but the company still posted a net loss of Rs. 96.06 lakhs. The auditor's limited review report flagged a 'Material Uncertainty Related to Going Concern,' noting total liabilities exceed total assets, leaving a negative net worth of Rs. 2,889.97 lakhs. The auditor also flagged concerns about related-party transactions: the company received Rs. 1,100 lakhs advance against a Rs. 3,500 lakh order, used part of it to repay debt owed to a related-party NBFC, and then extended an inter-corporate deposit of Rs. 823.62 lakhs to the same entity without shareholder approval as required under Section 186 of the Companies Act. Additionally, the company has not redeemed preference shares due since September 2000 and has not booked cumulative unpaid dividends and redemption premium totaling over Rs. 2,700 lakhs.
This is a significant red flag filing for shareholders. The auditor has explicitly raised going concern doubts due to negative net worth of nearly Rs. 29 crore and continued losses. Regulatory non-compliance on related-party loans and unredeemed preference shares add governance concerns, which could weigh negatively on the stock and signal high risk for existing shareholders.