Unaudited Financial Results for the quater ended 30th June, 2025
Awaiting price reaction for this filing.
Modern Denim Limited reported Q1 FY26 revenue of ₹546.47 lacs, down about 5% from ₹577.07 lacs in the same quarter last year. Total expenses rose to ₹727.32 lacs, pushing the net loss to ₹180.44 lacs, wider than the ₹114.74 lacs loss in Q1 FY25. The statutory auditor issued a qualified review report, flagging that interest on cumulative redeemable preference shares, public NCDs, and fixed deposits (totaling about ₹42 lacs for the quarter) was not provided for, as the company is awaiting waivers. The auditor also highlighted material uncertainty around going concern, noting the company was declared sick by BIFR and its net worth is fully eroded at a negative ₹6,819.94 lacs, with a Scheme of Compromise under Sections 230-232 still pending approval.
This is a negative filing for shareholders — losses are widening, the auditor has qualified the results, and the company is financially distressed with fully eroded net worth and no resolution yet from the pending rehabilitation scheme. Stock price is likely to remain under pressure until the BIFR scheme outcome is clear.