Digjam FY26 loss widens, auditor flags going concern risk

Digjam Limited reported a total comprehensive loss of ₹97.90 lakhs for the financial year ended March 31, 2026, as current liabilities exceeded current assets by ₹2191.48 lakhs. The company's statutory auditor, Nayan Parikh & Co., highlighted a material uncertainty related to the company's ability to continue as a going concern, citing discontinued operations at its sole manufacturing facility in Jamnagar. Despite these challenges, the Board approved the audited financial results on May 23, 2026, based on management's plans for asset realisation and strategic restructuring.

The Board meeting, conducted via video conferencing, approved the audited financial results for the quarter and year ended March 31, 2026, along with the draft Statutory Auditor's Report. Additionally, the Board appointed M/s. G. M. Kapadia & Co. as the Internal Auditor and M/s. K. G. Goyal & Co. as the Cost Auditor for the financial year 2026-2027. The trading window for insiders, closed since April 1, 2026, will reopen 48 hours after the declaration of these results. The company also published the audited financial results in newspapers, including the Financial Express and Maalai Malar, on May 25, 2026, pursuant to Regulations 33 and 47 read with Schedule III of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Financial Performance

The company reported a total income of ₹3,350.79 lakhs for FY26, up from ₹1,839.92 lakhs in the previous year. However, the financial performance was significantly impacted by discontinued operations. While continued operations posted a profit before tax of ₹232.55 lakhs, discontinued operations resulted in a loss before tax of ₹332.35 lakhs. Consequently, the company reported a net loss of ₹99.80 lakhs for the year.

Particulars	Year ended March 31, 2026 (₹ in Lakhs)	Year ended March 31, 2025 (₹ in Lakhs)
Total Income	3,350.79	1,839.92
Total Expenses	3,118.24	1,642.01
Profit before tax (Continued)	232.55	197.92
Loss before tax (Discontinued)	(332.35)	(1,258.40)
Net Profit/(Loss)	(99.80)	(1,060.49)

Auditor's Observations

Nayan Parikh & Co. issued an unmodified opinion on the financial results but drew attention to Note 4, which details the material uncertainty. The auditor noted that the Jamnagar facility was discontinued effective March 31, 2025, with related assets classified as "Non-Current Assets Held for Sale" carrying a value of ₹5,318.53 lakhs. The financial statements were prepared on a going concern basis, relying on management's plans to realize non-core assets and optimize costs.

The Board also approved a Scheme of Arrangement with Reid and Taylor International Private Limited, pending requisite approvals. The appointed date for the demerger is July 1, 2025, though its effects are not yet reflected in the current financial results.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.88%	-3.26%	-5.16%	+13.50%	+14.96%	+163.25%

Digjam Limited reported a narrowed total comprehensive loss of ₹97.90 lakhs for the financial year ended March 31, 2026, compared to ₹1,044.08 lakhs in the previous year. Revenue from operations for FY26 increased to ₹3,327.94 lakhs from ₹1,819.83 lakhs in FY25. For the quarter ended March 31, 2026, the company reported a net loss of ₹72.78 lakhs on revenue of ₹820.58 lakhs.

Financial Results

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026. The statutory auditors, M/s. Nayan Parikh & Co., issued an unmodified opinion on the results. The company's total income for the year stood at ₹3,350.79 lakhs, while total expenses were ₹3,118.24 lakhs.

Auditor Appointments

The Board appointed M/s. G. M. Kapadia & Co. Chartered Accountants as the Internal Auditor for the financial year 2026-2027. Additionally, M/s. K.G. Goyal & Co. were appointed as Cost Auditors for the year 2026-27, subject to the recommendations of the Audit Committee.

Key Financial Metrics

The following table summarizes the financial performance for the year ended March 31, 2026:

Parameter	Amount (₹ in Lakhs)
Revenue from Operations	3,327.94
Total Income	3,350.79
Total Expenses	3,118.24
Net Profit/(Loss) for the period	(99.80)
Total Comprehensive Income/(Loss)	(97.90)

Going Concern and Operations

The financial statements were prepared on a going concern basis. However, the auditors noted a material uncertainty regarding the company's ability to continue as a going concern due to current liabilities exceeding current assets by ₹2,191.48 lakhs as of March 31, 2026. Operations at the company's sole manufacturing facility in Jamnagar have been discontinued effective March 31, 2025, with related assets classified as "Non-Current Assets Held for Sale".

The trading window for dealing in the company's securities by designated persons remains closed until 48 hours after the declaration of these financial results.