Unaudited Financial Results for the Quarter and Half Year ended 30th September 2025 and take a note of Limited Liability Report submitted by the Auditor
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AJEL Limited reported standalone Q2 FY26 revenue of Rs 92.01 lakhs (down from Rs 99.05 lakhs in Q2 FY25) and a standalone loss of Rs 23.61 lakhs, narrowing from Rs 54.28 lakhs loss a year ago. On a consolidated basis (including Ajel Technologies India Pvt Ltd and Ajel Technologies Inc USA), Q2 revenue rose about 12% YoY to Rs 327.60 lakhs and the loss shrank sharply to just Rs 0.57 lakhs versus Rs 50.24 lakhs. H1 FY26 standalone loss was Rs 39.99 lakhs vs Rs 113.87 lakhs a year ago. Operating cash flow remained negative at Rs -47.43 lakhs standalone and Rs -58.25 lakhs consolidated, and cash balance is barely Rs 0.41 lakhs standalone. The auditor issued an unmodified limited review opinion but drew attention to 8 serious concerns, including a Rs 5 crore Bank of Maharashtra loan classified as NPA since October 2024, Rs 3 crore advanced to Transcord Telscape under an old MoU, Rs 85.96 lakhs in unrecovered long-term advances, unverifiable equity investments worth Rs 105.01 lakhs, and unpaid statutory and employee dues as of September 2025.
Despite improving consolidated numbers, the auditor's emphasis-of-matter points on the NPA loan, related-party advances to Transcord Telscape, unpaid statutory dues, and negative operating cashflow point to serious financial stability and going-concern risks. Shareholders should view this as a high-risk, small-cap situation with very thin liquidity and unresolved credit issues that could weigh on the stock.