Unaudited Financial results for the quarter ended 30th June, 2025
Awaiting price reaction for this filing.
Modern Denim's board approved unaudited standalone results for Q1FY26 (quarter ended June 30, 2025). Revenue from operations fell to ₹546.47 lacs from ₹577.07 lacs a year earlier, a drop of about 5%. Total expenses rose to ₹727.32 lacs from ₹692.22 lacs, pushing the net loss wider to ₹180.44 lacs versus ₹114.74 lacs in Q1FY25, with basic EPS of negative ₹0.48. The statutory auditor issued a qualified opinion, flagging that interest provisions of about ₹41.93 lacs on preference shares and certain borrowings were not made, and ₹145.88 lacs of amortisation of pre-received income was also not provided. The auditor also highlighted a material going-concern uncertainty, noting the company was declared a sick unit by BIFR, its scheme under Section 230-232 is pending approvals, and net worth is fully eroded with a negative balance of ₹6,819.94 lacs. The board also appointed M/s Jyoti Soni & Associates as Secretarial Auditor for five years from FY26 to FY30, subject to shareholder approval.
This is a negative filing for shareholders — widening losses, a qualified auditor opinion, and an explicit going-concern warning with fully eroded net worth signal serious financial stress and high risk for the stock. Expect continued pressure on the share price and skepticism until the BIFR scheme is approved and profitability is restored.