Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations, 2015, we wish to inform you that the Board of Directors, at its meeting held ....
Awaiting price reaction for this filing.
The Board of KLG Capital Services approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. The company reported a huge loss of Rs. 1,079.53 lakhs in H1 FY26, compared to a profit of Rs. 10.40 lakhs in H1 FY25. This was driven by a one-time impairment of Rs. 1,057.47 lakhs on a loan given to a single borrower (Rs. 1,022 lakhs principal + Rs. 35.47 lakhs interest) deemed irrecoverable due to the borrower's extremely weak financial condition. Total income fell sharply to Rs. 38.65 lakhs in H1 FY26 from Rs. 73.03 lakhs in H1 FY25, a drop of about 47%. The company's other equity has turned negative at Rs. (650.91) lakhs versus Rs. 428.63 lakhs as of March 2025. The auditor (M/s Bharat Shah & Associates) issued an Emphasis of Matter on the impairment, though without a qualified opinion.
This is a significant negative event for shareholders — the company has effectively wiped out its net worth due to the massive loan write-off, and revenue has nearly halved. The negative book value and going-concern qualification raise serious concerns about the company's financial health, likely weighing on the stock price and investor confidence.