Citichem India Limited reported a net profit of ₹1,00,14,177 for the financial year ended March 31, 2026, declining from ₹1,22,87,130 in FY25. The company’s revenue from operations fell sharply to ₹9,47,82,071, less than half of the ₹18,69,53,623 recorded in the prior year.

Financial Performance

Earnings per share decreased to ₹1.47 from ₹2.26 in FY25. The board did not recommend any dividend for the year, aiming to preserve financial resources. The entire profit was transferred to the General Reserve, bringing total reserves and surplus to ₹14,30,05,595.

Profit before interest, depreciation, and tax remained relatively stable at ₹2,01,82,309 compared to ₹1,97,59,699 in FY25. However, finance costs rose to ₹5,83,69,47 from ₹3,06,11,30, impacting the bottom line.

What the Numbers Show

A significant portion of the company's total income came from non-operating sources. While revenue from operations dropped by nearly 50%, other operating income contributed ₹52,99,41,69, driven largely by sundry creditor balances written back due to defective material quality. This highlights a dependency on non-core adjustments to support overall profitability amidst declining core trading volumes.

Balance Sheet and Contingencies

Short-term borrowings rose to ₹77,20,59,67 from ₹47,67,21,06 in FY25, primarily through an overdraft facility secured against fixed deposits. Trade receivables declined to ₹37,17,12,013 from ₹51,08,32,955.

The company faces substantial contingent liabilities totaling ₹2,207,18,09,56 as of March 31, 2026, up significantly from ₹24,18,41,498 in FY25. These include disputed income tax demands of ₹39,62,38,811 and GST demands of ₹1,810,94,21,45. The GST dispute involves allegations of fraudulent input tax credit availment across multiple years, with a writ petition pending before the Bombay High Court.

Corporate Governance

The company scheduled its 34th Annual General Meeting for September 30, 2026, at the Imperial Lounge in Mumbai. The meeting will address the adoption of audited financial statements for FY26 and the reappointment of director Wasim Nisar Rizvi. Ms. Khyati Palash Sheth serves as Company Secretary and Compliance Officer.

Citichem India Limited reported a net profit of ₹1.00 crore for the financial year ended March 31, 2026, a decline of 18.5% compared to ₹1.23 crore in the previous year. The company's revenue from operations fell 49.3% to ₹9.48 crore from ₹18.70 crore in FY25, primarily due to reduced sales in its chemicals segment. The Board of Directors approved the audited standalone financial results at a meeting held on May 30, 2026.

The company’s total revenue for FY26 stood at ₹15.48 crore, significantly lower than ₹54.73 crore in the preceding year. This reduction was driven by a substantial decrease in other operating income, which fell to ₹5.30 crore from ₹35.68 crore. Despite the top-line contraction, the company maintained a positive EBITDA of ₹2.02 crore, slightly up from ₹1.98 crore in FY25. However, finance costs increased to ₹58.37 lakh from ₹30.61 lakh, impacting the bottom line.

Financial Performance

Balance Sheet Highlights

The company’s balance sheet size contracted, with total assets decreasing to ₹54.80 crore as of March 31, 2026, from ₹69.92 crore a year earlier. Shareholders' equity improved marginally to ₹21.10 crore, driven by an increase in reserves and surplus to ₹14.30 crore. Short-term borrowings rose to ₹7.72 crore from ₹4.77 crore, while trade payables reduced significantly to ₹24.55 crore from ₹42.76 crore.

Cash and cash equivalents depleted to ₹65.59 lakh from ₹4.46 crore at the end of FY25. The contingent liabilities remained stable at ₹21.44 crore, comprising income tax demands. The auditors, NGST & Associates, issued an unmodified opinion on the financial results.