CMI Limited reported a net loss of ₹478.9 lakh for the quarter ended September 30, 2025, widening from a loss of ₹128.5 lakh in the preceding quarter. The company, currently under the Corporate Insolvency Resolution Process (CIRP), saw its total equity turn negative at ₹(15,260.8 lakh) due to accumulated losses exceeding paid-up capital.

The Board of Directors (Power Suspended), authorized by Resolution Professional Deepak Maini, approved the unaudited financial results on September 14, 2026. The filings highlight significant going concern risks, with auditors issuing a disclaimer due to the inability to verify key assets and liabilities under the Insolvency and Bankruptcy Code (IBC).

Financial Performance

Revenue from operations stood at ₹1,495.7 lakh for Q2FY26, up from ₹1,380.3 lakh in Q1FY26 but down significantly from ₹3,013.2 lakh in the same quarter last year. Total income for the quarter was ₹1,499.9 lakh, against total expenses of ₹1,978.9 lakh.

For the half-year period ended September 30, 2025, revenue declined to ₹2,875.9 lakh compared to ₹4,574.4 lakh in H1FY25. The company incurred a half-year net loss of ₹607.4 lakh, compared to a loss of ₹984.9 lakh in the corresponding prior period.

Balance Sheet and Cash Flow

As of September 30, 2025, total assets stood at ₹29,595.4 lakh, down from ₹30,318.1 lakh as of March 31, 2025. Non-current assets included property, plant, and equipment valued at ₹10,902.9 lakh and deferred tax assets of ₹8,530.3 lakh. Current liabilities remained high at ₹44,589.0 lakh, dominated by borrowings of ₹37,966.6 lakh.

Cash flow from operating activities generated a modest ₹18.5 lakh in H1FY26, compared to ₹45.2 lakh in the prior year. This was driven by a decrease in inventories of ₹236.8 lakh and other current assets of ₹112.0 lakh, partially offset by a reduction in trade payables. Cash and cash equivalents closed at ₹14.0 lakh, nearly unchanged from the beginning of the period.

What the Numbers Show

Accumulated losses of ₹16,863.9 lakh have completely eroded the company’s paid-up equity share capital of ₹1,603.1 lakh, resulting in negative total equity. This structural imbalance underscores the severity of the financial distress, reinforcing the necessity of the ongoing insolvency resolution process initiated by Canara Bank in August 2023.

Auditor’s Disclaimer

Kumar Pramod & Associates, the statutory auditors, issued a limited review report with a disclaimer. They noted that sufficient appropriate audit evidence could not be obtained due to the CIRP status. Key issues included unavailable fixed asset registers, unverified bank confirmations, and lack of quantitative inventory details. Consequently, the auditors did not express an opinion on the financial statements.

CMI Limited reported a net loss of ₹128.51 lakh for the quarter ended June 30, 2025, a significant improvement from the ₹351.66 lakh loss recorded in the corresponding quarter of the previous year.

The company, which is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, saw its revenue from operations decline to ₹1,380.25 lakh in Q1FY26, down from ₹1,561.22 lakh in Q1FY25.

Financial Performance

The Board of Directors (Power Suspended), acting under the authorization of Resolution Professional Deepak Maini, approved the unaudited financial results on September 11, 2026. The results were subject to a limited review by statutory auditors Kumar Pramod & Associates.

Revenue from operations contracted by approximately 11.6% year-on-year. However, total expenses fell by a sharper margin of roughly 20.9%, driven primarily by a reduction in other expenses and employee benefits costs. This cost compression contributed to the narrowing of the net loss.

Key Operational Metrics

• Cost of raw materials consumed stood at ₹1,238.70 lakh, compared to ₹1,550.61 lakh in the prior year quarter.
• Employee benefits expenses decreased to ₹65.53 lakh from ₹89.76 lakh.
• Finance costs were minimal at ₹3.43 lakh, down from ₹5.13 lakh.
• Depreciation and amortization expenses remained relatively stable at ₹186.20 lakh.

What the Numbers Show

The divergence between the decline in revenue (-11.6%) and the steeper decline in total expenses (-20.9%) highlights a contraction in operational scale alongside improved cost efficiency. The reduction in raw material consumption aligns with the lower revenue figure, suggesting reduced production volume or input costs. Meanwhile, the significant drop in 'other expenses' (from ₹89.79 lakh to ₹33.01 lakh) was a key driver in limiting the bottom-line loss, indicating potential streamlining of non-core operational outlays during the insolvency process.

Auditor Observations

Kumar Pramod & Associates issued a limited review report with several matters requiring attention:

• Going Concern: Accumulated losses amounting to ₹16,375.79 lakh have eroded the company's net worth against a paid-up capital of ₹1,603.07 lakh.
• Accounting Standards: The financial statements were prepared under generally accepted accounting principles in India, not Ind AS.
• Verification Gaps: Confirmations for bank accounts, loans, and investments were unavailable. Fixed asset registers and inventory quantitative details were also not provided for verification.
• Contingent Liabilities: Potential liabilities related to income tax, TDS disputes, and GST could not be ascertained due to lack of available details.

The company continues to operate under the guidance of the Resolution Professional, with the board's powers suspended as per the IBC.