Arcotech Limited promoter Arvind Kumar Saraf has confirmed that he and persons acting in concert did not create any new encumbrance during the financial year ended March 31, 2026. The declaration, submitted to the National Stock Exchange of India Limited and BSE Ltd., states that no direct or indirect encumbrance was made other than those already disclosed.

The disclosure was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to inform stock exchanges about any encumbrance on their shares held in the company.

The letter, dated April 06, 2025, was addressed to the stock exchanges for their information and record. A copy was also marked to the Arcotech Limited Audit Committee.

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.

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.