CMI Limited reported a net loss of ₹179.30 lakh for the quarter ended December 31, 2025, a sharp improvement from the ₹818.05 lakh loss recorded in the corresponding period of FY25.

The company, currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), also reported a 73% year-on-year decline in revenue from operations to ₹1,185.31 lakh. This follows a quarterly revenue of ₹1,495.68 lakh in Q2FY26.

Financial Performance

Revenue from operations for the nine months ended December 2025 stood at ₹4,061.24 lakh, down significantly from ₹8,974.33 lakh in the same period last year. Total income for the quarter was ₹1,197.18 lakh, comprising ₹1,185.31 lakh from operations and ₹11.87 lakh from other income.

Total expenses for Q3FY26 amounted to ₹1,376.49 lakh, driven primarily by cost of raw materials consumed at ₹1,023.10 lakh and depreciation and amortisation expenses of ₹186.23 lakh. Employee benefit expenses remained stable at ₹90.19 lakh compared to ₹90.67 lakh in the previous quarter.

For the nine-month period, the company incurred a cumulative net loss of ₹786.70 lakh, compared to a loss of ₹1,802.97 lakh in the same period of FY25. The basic earnings per share (EPS) for the quarter was ₹-0.11, an improvement from ₹-0.51 in Q3FY25.

What the Numbers Show

The divergence between the steep decline in revenue and the even sharper contraction in net losses suggests a disproportionate reduction in operational costs or fixed expenses relative to top-line shrinkage. While revenue fell by over 73%, the net loss narrowed by approximately 78%, indicating that cost structures may have adjusted more aggressively than sales volumes during this period of insolvency resolution.

Auditor’s Review and Going Concern

Kumar Pramod & Associates conducted a limited review of the unaudited financial results. The auditors issued a disclaimer of opinion, citing insufficient appropriate audit evidence due to the company’s status under CIRP. Key matters requiring attention included:

• Accumulated losses of ₹17,043.21 lakh as of December 31, 2025, against paid-up capital of ₹1,603.07 lakh, eroding net worth.
• Unavailability of fixed asset registers, bank confirmations, and inventory quantitative details.
• Potential contingent liabilities related to tax disputes and pending litigations that could not be independently verified.

The financial statements were prepared in accordance with accounting principles generally accepted in India under Rule 7 of the Companies (Accounts) Rules, 2014, rather than Ind AS 34. The Board of Directors, whose powers are suspended during CIRP, approved the results on September 15, 2026, upon authorization by Resolution Professional Deepak Maini.

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.