Garbi Finvest reports net loss of ₹279.63 lakh in FY26
Garbi Finvest reported a net loss of ₹279.63 lakh for FY26 against a profit of ₹20.95 lakh in FY25, with total income rising to ₹466.59 lakh. The auditors flagged non-compliance with Ind AS 109 regarding the ECL model and deficiencies in internal financial controls. For Q4FY26, the net loss was ₹509.15 lakh on a total income of ₹114.64 lakh.
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Garbi Finvest reported a net loss of ₹279.63 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹20.95 lakh recorded in the previous year. Total income for the year rose to ₹466.59 lakh from ₹435.88 lakh in FY25, supported by interest income of ₹255.14 lakh and a profit on the sale of investments amounting to ₹211.45 lakh. However, the company faced significant headwinds with total expenses surging to ₹1,104.20 lakh, largely due to a sharp increase in depreciation and amortisation expenses to ₹1,051.38 lakh.
For the quarter ended March 31, 2026, the company posted a net loss of ₹509.15 lakh. Total income for the quarter stood at ₹114.64 lakh, while expenses were recorded at ₹824.93 lakh. The board approved the audited financial results on May 29, 2026, following a review by the audit committee and statutory auditors.
Auditor's Observations
The statutory auditors, Kushal S Poonia & Co., highlighted significant non-compliance issues in their report. They noted that the company failed to follow the estimated credit loss (ECL) model as required under Ind AS 109 for financial instruments. Additionally, the company did not implement Internal Financial Controls (IFC) as mandated by the Companies Act, 2013, and failed to provide necessary control design documentation, preventing the auditors from testing the effectiveness of management controls.
The auditors also pointed out that the company had not accounted for interest on all loan accounts. Consequently, they were unable to comment on the completeness and accuracy of the revenue recorded in the books of account.
Financial Performance
The following table outlines the key financial metrics for the quarter and year ended March 31, 2026:
| Particulars | Quarter Ended 31.03.2026 (Audited) | Year Ended 31.03.2026 (Audited) |
|---|---|---|
| Total Income | 114.64 | 466.59 |
| Total Expenses | 824.93 | 1,104.20 |
| Profit/(Loss) before Tax | -710.29 | -637.61 |
| Net Profit/(Loss) for the Year | -509.15 | -279.63 |
| Earnings Per Share (Basic and Diluted) | -4.27 | -9.05 |
On the balance sheet front, the company's total assets stood at ₹7,094.09 lakh as of March 31, 2026, down from ₹8,017.69 lakh in the previous year. Total equity decreased to ₹6,897.35 lakh from ₹7,575.25 lakh over the same period. Cash and cash equivalents also reduced to ₹64.86 lakh from ₹117.73 lakh.
Historical Stock Returns for Garbi Finvest
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.28% | -0.35% | -3.77% | -19.38% | +12.75% | -49.07% |
What remediation measures will management implement to address the auditor's concerns regarding non-compliance with Ind AS 109 and the lack of Internal Financial Controls?
With cash reserves dwindling to ₹64.86 lakh, does the company have adequate liquidity or a plan to raise capital to fund ongoing operations?
How will the company restructure its asset base to manage the recurring high depreciation and amortisation costs that drove the recent surge in expenses?
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