CMI Limited reported a net loss of ₹1,135.8 lakh for the financial year ended March 31, 2026, widening slightly from a loss of ₹1,103.15 lakh in FY25. Revenue from operations fell to ₹5,534.06 lakh, down from ₹5,746.22 lakh in the previous year.

The cable manufacturer continues to operate under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The Board of Directors, with powers suspended, approved the results on September 16, 2026, upon authorization by Resolution Professional Deepak Maini.

Financial Performance

For the quarter ended March 31, 2026, CMI reported a net loss of ₹349.10 lakh, compared to a loss of ₹285.11 lakh in the same period last year. Total income for the quarter stood at ₹1,490.24 lakh, driven by revenue from operations of ₹1,472.82 lakh.

For the full year, total expenses amounted to ₹6,721.57 lakh, exceeding total income of ₹5,585.77 lakh. Cost of raw materials consumed was ₹5,213.14 lakh, while employee benefits expenses rose to ₹342.88 lakh from ₹326.76 lakh in FY25.

Audit Qualifications and Going Concern

Statutory auditors Kumar Pramod & Associates issued a qualified opinion on the financial statements. The audit report highlighted material uncertainty regarding the company’s ability to continue as a going concern due to accumulated losses of ₹17,383.08 lakh against a paid-up share capital of ₹1,602.74 lakh.

Key qualifications included:

• Inability to verify existence and valuation of property, plant, and equipment due to lack of physical verification.
• Non-disclosure of employee benefits as required under Ind AS 19.
• Lack of external confirmations for loans, bank accounts, and trade receivables.
• Significant uncertainty regarding the realization of deferred tax assets amounting to ₹8,530.33 lakh.

What the Numbers Show

The balance sheet reveals a stark divergence between asset recognition and operational reality. While the company carries ₹8,530.33 lakh in deferred tax assets—constituting over 40% of total non-current assets—the auditors flagged significant doubt about their realizability given the negative net worth and ongoing insolvency proceedings. This suggests the asset base may be overstated if future taxable profits do not materialize.

Additionally, cash and cash equivalents at year-end were minimal at ₹15.52 lakh, highlighting severe liquidity constraints as the company navigates the CIRP process without an approved resolution plan.

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.