Arcotech reports net loss of ₹9,165.52 lakh for FY26
Arcotech Limited reported a widened net loss of ₹9,165.52 lakh for FY26, with nil revenue from operations and total income dropping to ₹0.39 lakh. The statutory auditor, Amit Joshi & Associates, issued a qualified opinion highlighting material uncertainty about the company's going concern status due to ongoing restructuring and legal proceedings. The Board approved the results on May 30, 2026.
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Arcotech Limited reported a net loss of ₹9,165.52 lakh for the financial year ended March 31, 2026, widening from a net loss of ₹8,748.86 lakh in the previous year. Revenue from operations remained nil for the year, while total income stood at ₹0.39 lakh compared to ₹95.46 lakh in FY25. The company's statutory auditor, Amit Joshi & Associates, issued a qualified opinion on the financial results, citing material uncertainty relating to the company's status as a going concern.
The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The submission was made pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Radhanath Pattanayak, Whole Time Director, signed the results on behalf of the company.
Financial Performance
The company's total expenses for FY26 amounted to ₹3,350.65 lakh, a significant decrease from ₹9,996.00 lakh in the previous year. Finance costs for the year were ₹2,254.02 lakh, while depreciation and amortisation expenses stood at ₹1,003.26 lakh. The basic and diluted earnings per share (EPS) for the year were reported at a loss of ₹8.73 per share, compared to a loss of ₹8.33 per share in FY25.
| Metric | FY26 (₹ in Lacs) | FY25 (₹ in Lacs) |
|---|---|---|
| Total Income | 0.39 | 95.46 |
| Total Expenses | 3,350.65 | 9,996.00 |
| Net Profit/(Loss) | (9,165.52) | (8,748.86) |
| Basic EPS | (8.73) | (8.33) |
Audit Qualifications and Going Concern
Amit Joshi & Associates, the Statutory Auditors, highlighted a material uncertainty relating to the company's ability to continue as a going concern. The auditors noted that the restructuring of the company's business is under consideration by lenders, and certain lenders have filed applications or issued notices before the NCLT, DRT, and SARFAESI. The current liabilities exceed current assets, and the net loss for the year would have increased had the company provided interest as per the auditor's qualification.
The basis for the qualified opinion includes unprovided interest amounting to ₹3,053.44 lakh (net of tax) for the current financial year, based on a techno-economic viability (TEV) study. The company has deposited ₹1,485.00 lakh with bankers and financial institutions towards settling dues, pending final approval from a lender. Additionally, the auditors noted arrears of undisputed statutory dues for income tax and other statutory dues amounting to ₹1,209.07 lakh and ₹80.75 lakh, respectively, which were outstanding for more than six months.
What is the expected timeline for lenders to finalize the restructuring plan currently under consideration?
How will the pending NCLT, DRT, and SARFAESI filings impact the company's ability to secure necessary funding or approvals?
What specific operational changes or new business lines does the company plan to implement to restore revenue generation?
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