Colorchips New Media narrows net loss to ₹3.28 crore in Q4FY26
Colorchips New Media narrowed its standalone net loss to ₹3.28 crore in Q4FY26 from ₹3.99 crore in the prior year, supported by a rise in revenue from operations to ₹58.66 lakh. For the full year FY26, the net loss was ₹16.24 crore. The statutory auditor issued a disclaimer of opinion on the company's internal financial controls, noting that the control systems were not made available for audit evaluation.
*this image is generated using AI for illustrative purposes only.
Colorchips New Media reported a narrowed standalone net loss of ₹3.28 crore for the quarter ended March 31, 2026, compared to a net loss of ₹3.99 crore in the corresponding period of the previous year. The company's revenue from operations rose to ₹58.66 lakh in Q4FY26 from ₹39.78 lakh in Q4FY25. For the full financial year ended March 31, 2026, the company recorded a net loss of ₹16.24 crore on total income of ₹3.80 crore.
The Board of Directors reviewed the audited financial results at its meeting held on May 30, 2026. The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS). The company operates in a single segment, Digital Media, and therefore segmental reporting was not provided.
Financial Performance
The company's total expenses for Q4FY26 stood at ₹39.09 lakh, a decrease from ₹43.64 lakh in the same quarter of the previous year. Employee benefits expense for the quarter was ₹14.57 lakh, while depreciation and amortisation expense amounted to ₹21.23 lakh. Finance costs were reported at ₹638.80.
For the year ended March 31, 2026, total expenses increased to ₹20.08 crore from ₹18.58 crore in the previous year. The company reported a deferred tax of ₹40.12 lakh for the year. The paid-up equity share capital remained unchanged at ₹17.01 crore, with a face value of ₹2 each.
| Metric | Q4FY26 (₹) | Q4FY25 (₹) | FY26 (₹) | FY25 (₹) |
|---|---|---|---|---|
| Revenue from Operations | 586,593.03 | 397,823.00 | 3,799,776.85 | 6,759,157.00 |
| Total Expenses | 3,909,174.81 | 4,364,012.00 | 20,083,218.71 | 18,583,648.00 |
| Net Profit/(Loss) | (3,282,311.78) | (3,996,911.00) | (16,243,171.86) | (100,245,830.00) |
| Earnings Per Share (Basic) | (0.1930) | (0.2350) | (0.0955) | (5.8934) |
Auditor's Report and Internal Controls
Pavan & Associates, the statutory auditors, issued an unqualified opinion on the standalone financial statements. However, the auditors issued a disclaimer of opinion on the internal financial controls with reference to financial statements. The report stated that the system of internal financial controls was not made available to enable the auditors to determine if the company had established adequate controls or whether they were operating effectively as of March 31, 2026.
The auditor also noted that the company used accounting software where the feature of recording audit trail (edit log) facility was not enabled and had not operated throughout the year for all relevant transactions. The company reported cash losses of ₹75 lakh for the current financial year and ₹914 lakh for the immediately preceding financial year. No dividend was declared or paid during the year.
Historical Stock Returns for Colorchips New Media
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.00% | -4.44% | -10.55% | -27.79% | -27.54% | -74.63% |
What specific measures will management implement to address the auditor's disclaimer regarding internal financial controls?
How does the company plan to bridge the significant gap between rising annual expenses and stagnant revenue to achieve profitability?
Will the company upgrade its accounting software to enable the audit trail feature before the next financial audit?
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