Span Divergent Limited - Integrated Financial Results for the First Quarter Ended June 30, 2025
Awaiting price reaction for this filing.
Span Divergent Limited reported mixed results for Q1 FY26. On a standalone basis, profit after tax jumped sharply to Rs 41.67 lakhs from Rs 23.08 lakhs in Q1 FY25, driven largely by a higher exceptional item of Rs 19 lakhs. Total standalone income fell modestly to Rs 64.93 lakhs from Rs 73.55 lakhs. On a consolidated basis, the picture is weaker: total income dropped sharply to Rs 179.21 lakhs from Rs 388.52 lakhs, led by a steep fall in cashew processing segment revenue (Rs 15.27 lakhs vs Rs 276.77 lakhs). The company slipped into a consolidated loss after tax of Rs 17.01 lakhs versus Rs 8.53 lakhs loss last year, with other equity turning negative at Rs (826.86) lakhs. The auditor issued an unmodified limited review report. Total financial indebtedness is negligible at Rs 1.92 lakhs (unsecured loans from directors), with no defaults.
Standalone earnings look strong on paper but are propped up by exceptional items rather than core operations, and the consolidated business is loss-making with negative net worth, reflecting stress in subsidiaries. Shareholders should note weak core revenue, consolidated losses, and ongoing going concern issues at multiple subsidiaries, which could weigh on the stock sentiment.