Arshiya Limited reported a net profit of ₹36.78 lakh for the quarter ended June 30, 2025, marking a turnaround from the net loss of ₹99,759.94 lakh recorded in the corresponding period of the previous year. Revenue from operations for the quarter stood at ₹450.00 lakh, while total income was ₹456.75 lakh. The unaudited standalone financial results were considered, approved, and taken on record by the Resolution Professional, Mr. Pankaj Mahajan, on May 29, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) pursuant to an order by the National Company Law Tribunal (NCLT), Mumbai Bench, dated April 23, 2024. Consequently, the powers of the Board of Directors stand suspended and are vested with the Resolution Professional. Due to the ongoing CIRP proceedings at certain subsidiary companies, the Resolution Professional was unable to consolidate their accounts, and the Consolidated Financial Results for the quarter could not be prepared.

M/s ARTHA & Associates, Chartered Accountants, issued a Limited Review Report with a disclaimer of conclusion. The auditors stated they were unable to obtain sufficient appropriate review evidence to verify the completeness, accuracy, and validity of the underlying records and balances. This inability stems from significant manpower constraints, limitations in the availability of records, and the suspension of the Board's powers. Key areas of uncertainty included the non-recognition of liabilities related to corporate guarantees, the non-assessment of impairment for Property, Plant and Equipment, and revenue recognition without meeting Ind AS 115 criteria.

The financial results highlighted specific operational and financial challenges. The company recognized revenue of ₹450 lakh during the quarter from Ascendas Panvel FTWZ Limited; however, the auditors noted there was no executed contract or evidence of customer acceptance for this arrangement. Additionally, the company raised interim finance of ₹237.24 lakh from members of the Committee of Creditors to meet cash flow deficiencies, with interest not accounted for due to the CIRP moratorium.

A significant operational disruption was cited in the notes, where 50 out of 71 employees resigned between July 30 and August 2, 2024, without fulfilling notice periods. This mass departure, followed by the resignation of key accounting personnel on December 31, 2025, resulted in severe manpower shortages and delays in finalizing accounts. The company also received termination notices for sub-lease agreements from Ascendas Panvel FTWZ Limited and Anomalous Infra Private Limited in July 2024 due to events of default.

Financial Performance Summary

Arshiya Limited reported a net loss of ₹6.44 lakh for the quarter ended December 31, 2025, as the company continues to operate under the Corporate Insolvency Resolution Process (CIRP). The unaudited standalone financial results, approved by Resolution Professional Mr. Pankaj Mahajan on May 29, 2026, reflect the operational and financial constraints imposed by the ongoing insolvency proceedings. The company recorded a total income of ₹462.80 lakh for the quarter, while total expenses stood at ₹469.24 lakh.

For the nine months ended December 31, 2025, the company reported a net loss of ₹120.81 lakh on a total income of ₹1,390.37 lakh. In the corresponding period of the previous year, the company had reported a net loss of ₹1,09,446.03 lakh. The significant reduction in loss is attributed to the absence of exceptional items, which amounted to ₹1,06,820.66 lakh in the prior year period.

Financial Performance

The financial statements were prepared on a going concern basis pursuant to Section 20 of the Insolvency and Bankruptcy Code, 2016. Revenue from operations remained flat at ₹450.00 lakh for the quarter and ₹1,350.00 lakh for the nine-month period. Other income declined to ₹12.80 lakh in Q3FY26 from ₹414.29 lakh in the same quarter of the previous year.

Auditor's Disclaimer

M/s ARTHA & Associates, the Statutory Auditor, issued a Limited Review Report with a disclaimer of conclusion. The auditor cited the inability to obtain sufficient appropriate review evidence due to the suspension of the Board of Directors, significant manpower constraints, and limitations in the availability of records. Key areas of concern included the non-recognition of liabilities for corporate guarantees aggregating to ₹1,03,850.00 lakhs, the non-assessment of impairment for Property, Plant and Equipment, and revenue recognition of ₹1,350 lakhs without meeting Ind AS 115 criteria.

The auditor also highlighted the company's failure to recognize accrued interest on financial liabilities post-commencement of CIRP and the inability to verify accounting for share-based payments. Additionally, the recoverability of investments and loans to subsidiary Arshiya Northern FTWZ Limited, aggregating to ₹57,538.95 lakhs, remains uncertain pending the resolution plan.

Operational and Legal Updates

The company faced severe operational disruption during the reporting period, with 50 out of 71 employees resigning between July 30 and August 2, 2024. This mass departure, followed by the resignation of key accounting personnel, resulted in significant delays in finalizing accounts and regulatory compliance.

Subsidiary companies Arshiya Northern FTWZ Limited and NCR Rail Infrastructure Limited are also undergoing CIRP, preventing the consolidation of their accounts. Consequently, the Resolution Professional was unable to prepare the Consolidated Financial Results for the quarter and nine months ended December 31, 2025. The powers of the Board remain suspended and vested with the Resolution Professional.