Sarthak Metals Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.
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Sarthak Metals Limited reported audited financial results for Q4 and FY26. Revenue from operations grew 7.8% to Rs 19,225.14 lakhs from Rs 17,842.01 lakhs in the previous year. Profit after tax increased 11.9% to Rs 461.07 lakhs from Rs 411.98 lakhs. However, the company faced significant working capital stress with negative operating cash flow of Rs 3,256.32 lakhs, driven by a sharp increase in inventories (up Rs 1,182 lakhs) and trade receivables (up Rs 1,439 lakhs). Cash and cash equivalents dropped dramatically from Rs 2,916.43 lakhs to just Rs 10.03 lakhs. The board also approved a material related party transaction with M/s Bansal Brothers for FY27 and appointed new internal and cost auditors. Qualified borrowings increased from nil to Rs 6.60 crores during the year.
While profitability improved, the severe negative operating cash flow and massive depletion of cash reserves are red flags for shareholders. The company took on debt during the year and faces liquidity challenges despite steady revenue growth.