Facor Alloys Limited reported a consolidated net loss of ₹1,479.68 lakh for the year ended March 31, 2026, as statutory auditors issued a disclaimer of opinion regarding the exclusion of an overseas subsidiary. The company's manufacturing operations have remained suspended since October 31, 2023, resulting in minimal revenue and continuous losses for the past three years, which casts significant doubt on the group's ability to continue as a going concern.

The auditor, K. K. Mankeshwar & Co., stated they were unable to obtain sufficient appropriate audit evidence regarding the financial results of one overseas subsidiary. This exclusion followed a change in management during the financial year 2024–25, which prevented the new management from accessing complete and reliable financial information required for consolidation. While management believes the financial impact is not material, the auditor could not determine if adjustments were necessary.

Financial Performance for FY26

The group reported total income of ₹188.78 lakh for the year ended March 31, 2026, a significant decrease from ₹1,058.30 lakh in the previous year. Total expenditure stood at ₹2,554.70 lakh. The basic earnings per share (EPS) for the period was reported at -₹0.76, compared to -₹2.57 in the prior year.

Key Qualifications and Disclosures

The audit report highlighted several material factors affecting the financial statements. The disclaimer of opinion was driven by the inability to consolidate the overseas subsidiary. Additionally, the auditors drew attention to a material uncertainty related to the group's going concern status due to suspended operations and continuous losses.

An emphasis of matter was noted regarding the identification and sale of excess anthracite coal inventory, with proceeds of ₹50.09 lakh disclosed as exceptional items. Furthermore, the company received an advance of ₹27.97 crore for the proposed sale of plant and machinery classified as assets held for sale, though no transaction was recognised by the reporting date as the definitive agreement remained unexecuted.

Operational and Legal Updates

During the year, the company incurred a voluntary compensation expense of ₹834.32 lakh under its Voluntary Retirement Scheme (VRS). Regarding the excluded subsidiary, Facor Alloys filed a formal complaint with the Economic Offences Wing (EOW). The Chief Judicial Magistrate has directed the EOW to submit an action taken report, and part arguments have been heard with the matter listed for further hearing.

The Board of Directors approved the consolidated financial results at a meeting held on May 25, 2026.

Facor Alloys reported a net loss of ₹1,479.57 lakh for the financial year ended March 31, 2026, narrowing from a loss of ₹5,021.47 lakh in the previous year. The company's manufacturing operations have remained suspended since October 31, 2023, resulting in minimal revenue and continuous losses for the past three years. The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 25, 2026.

Financial Performance and Audit Opinions

Revenue from operations for the year stood at ₹146.99 lakh, compared to ₹16.97 lakh in the previous year. The statutory auditors, K. K. Mankeshwar & Co., issued an unmodified opinion on the standalone financial results. However, the auditors issued a disclaimer of opinion on the consolidated financial results due to the exclusion of an overseas subsidiary following a change in management and the non-availability of reliable financial data. The auditors also highlighted a material uncertainty related to the company's ability to continue as a going concern.

The table below summarises the key financial figures for the year ended March 31, 2026:

Strategic Decisions and Appointments

The Board approved the alteration of the Main Objects' Clause of the Memorandum of Association to enable the company to undertake business activities relating to the development and operation of Gati Shakti Cargo Terminal (GCT) under the GCT Policy framework. This includes logistics infrastructure, freight terminals, and allied logistics services, subject to shareholders' and requisite approvals.

Additionally, the Board re-appointed M/s. Rao & Kumar as Internal Auditors for a period of one year from April 1, 2026, to March 31, 2027. The company also appointed M/s. Uppalapati & Associates LLP as Cost Auditors for the financial year 2026-27. The regulatory filing was digitally signed by Sachin Kumar Gupta, Company Secretary & Compliance Officer.