Outcome of Board Meeting Held on 01.08.2025
Awaiting price reaction for this filing.
Rama Petrochemicals' Board approved the unaudited standalone and consolidated financial results for Q1 FY26 (quarter ended 30 June 2025). Revenue from operations rose to Rs 17 lakh from Rs 3.61 lakh in Q4 FY25 and essentially nil in Q1 FY25, but total expenses stayed high at Rs 190.15 lakh, dominated by finance costs of Rs 146.17 lakh and employee costs of Rs 17.73 lakh. The company reported a standalone net loss of Rs 173.03 lakh (EPS of Rs -1.48), versus a loss of Rs 182.04 lakh in the previous quarter. For the full year FY25, the standalone loss stood at Rs 680.50 lakh, showing a pattern of persistent losses with revenue far below costs. The statutory auditor, M/s Khandelwal & Mehta LLP, issued a qualified (modified) conclusion, flagging Rs 185 lakh treated as 'Other Financial Assets' for release of collateral securities, which they say is not in line with accepted accounting principles, inflating retained earnings and current assets by that amount.
The company remains in deep losses with revenue only about 9% of total expenses, raising serious going-concern questions for shareholders. The auditor's qualification on the Rs 185 lakh asset classification is a governance and accounting quality concern, though the sharp pickup in revenue from near-zero levels offers a small positive signal.