Approval of the Standalone and Consolidated Financial Statements for the Second half year ended and year ended 31st March 2026 and the consideration of the Audit Report thereon.
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Storage Technologies and Automation Limited reported a significant decline in FY2026 performance. Consolidated revenue fell 15.4% to Rs 849.70 Mn (FY25: Rs 1,003.79 Mn), with the company swinging to a net loss of Rs 32.74 Mn from a profit of Rs 35.51 Mn. EBITDA turned negative at Rs 6.30 Mn loss versus Rs 94.38 Mn profit in the prior year. The second half was particularly weak with Rs 14.43 Mn EBITDA loss due to order cancellations from a key customer, project deferrals, and geopolitical disruptions affecting GCC export markets. Despite the losses, the statutory auditors M/s MSSV & Co. issued an unmodified (clean) opinion. An emphasis of matter was raised regarding non-compliance with Karnataka gratuity insurance rules and treatment of past service costs under the new wage code. The company also incurred cash losses of Rs 214.22 lakhs and changed auditors during the year.
The stock is likely to face negative sentiment due to revenue decline, operating losses, and cash burn. However, the clean audit opinion and management guidance of 20%+ revenue growth for FY27 with return to EBITDA profitability may provide some support. Shareholders should monitor order book conversion and margin recovery.