Fraser & Company reported a widened net loss of ₹2.84 million for the quarter ended June 30, 2026 (Q1FY26), compared to a loss of ₹0.91 million in the same period last year. The deterioration in profitability stems from rising operational costs and a reversal in other income, which turned negative due to losses on the sale of investment properties. This financial performance highlights ongoing challenges in the company’s construction materials supply segment.

The Board of Directors approved the unaudited standalone financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the statutory auditor, AMS & Co LLP, which issued a limited review report with a qualified conclusion. The Board also noted listing compliances and initiated proceedings for the Annual General Meeting (AGM) for the financial year 2025-26.

Financial Performance

Revenue from operations increased to ₹2.53 million in Q1FY26, up from nil in Q1FY25. However, total income from operations was ₹1.36 million, as other income recorded a loss of ₹1.17 million. This negative other income primarily reflects a ₹1.25 million loss on the sale of two residential flats that were part of an earlier settlement agreement. Total expenses rose to ₹4.20 million from ₹0.92 million in the previous year’s quarter, driven by higher purchase of stock-in-trade (₹2.41 million) and employee benefit expenses (₹89 lakh).

Audit Qualifications and Risks

AMS & Co LLP issued a qualified opinion citing three key areas where sufficient audit evidence was unavailable. First, trade receivables of ₹13.39 million have been outstanding for over 12 months without balance confirmations. Second, trade payables of ₹38.83 million lack confirmations, and five creditors have filed recovery suits covering ₹29.90 million. Third, advances to suppliers amounting to ₹28.65 million, given prior to December 2022, lack documentation or balance confirmations.

What the Numbers Show

The divergence between revenue growth and profit widening indicates significant margin pressure. While revenue generation resumed after a nil quarter in FY25, the cost structure did not scale efficiently. The ₹1.17 million loss in other income directly impacted the bottom line, suggesting that asset monetization strategies are currently value-destructive rather than accretive. Furthermore, the lack of confirmation for nearly ₹80 million in combined receivables, payables, and advances poses a material risk to the accuracy of the balance sheet, as highlighted by the statutory auditor.

Fraser & Company Limited has submitted a regulatory compliance statement to stock exchanges regarding the non-applicability of SEBI Regulation 32 requirements for the quarter ended March 31st, 2026. The company confirmed that it has not undertaken any capital market activities that would necessitate filing a statement of deviations or variations.

Regulatory Compliance Statement

The company filed its compliance communication on Monday, April 13th, 2026, addressing both major stock exchanges where its shares are listed. The statement specifically relates to Regulation 32(1) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Non-Applicability Confirmation

Fraser & Company Limited explicitly stated that since the company has not made any public issue, rights issue, or preferential issue during the quarter, the statement requirements under SEBI Regulation 32 are not applicable. This regulation typically requires companies to report any deviations or variations from the objects stated in their offer documents when they raise capital from the public.

The communication was signed by Managing Director Omkar Rajkumar Shivhare, who holds DIN 08374673. The company requested both exchanges to take the compliance statement on record, fulfilling its disclosure obligations under the listing regulations.

Company Information

Fraser & Company Limited, incorporated since 1917, operates from its registered office in Borivali (East), Mumbai. The company holds CIN L51100MH1917PLC272418 and maintains its corporate governance standards through regular compliance with stock exchange requirements.