Garware Marine Industries Limited reported a net profit of ₹14.72 lakh for the financial year ended March 31, 2026 (FY26), a significant decline from ₹43.14 lakh in FY25. Revenue from operations dropped to ₹108.36 lakh compared to ₹120.18 lakh in the previous year. The results were approved by the Board at its meeting held on May 12, 2026, and subsequently revised on July 29, 2026, to address a qualified audit opinion issued by the statutory auditors.

The qualification stems from the company's failure to recognize an Expected Credit Loss (ECL) provision on trade receivables amounting to ₹355.15 lakh that have been outstanding for more than three years. Statutory auditors D. Kothary & Co., Chartered Accountants, stated they could not comment on the realizability of these balances due to insufficient evidence. Consequently, the impact of this qualification is "not quantifiable," and adjusted financial figures cannot be determined.

Financial Performance

For the quarter ended March 31, 2026, the company incurred a net loss of ₹4.84 lakh, reversing a net profit of ₹4.56 lakh in the corresponding quarter of FY25. Total income for the quarter stood at ₹27.33 lakh, down from ₹31.57 lakh in Q4FY25. Expenses rose to ₹31.91 lakh from ₹26.68 lakh in the prior quarter, driven primarily by other expenses which increased to ₹22.52 lakh from ₹17.32 lakh.

Other income contributed ₹4.19 lakh to the annual total, a sharp increase from ₹0.24 lakh in FY25. However, this was offset by higher employee benefit expenses of ₹36.96 lakh and other expenses of ₹59.55 lakh for the year.

Balance Sheet and Cash Flow

Total assets decreased to ₹1,062.41 lakh as of March 31, 2026, from ₹1,917.22 lakh in the prior year. This reduction was largely due to a drop in investments, which fell to ₹489.00 lakh from ₹1,367.54 lakh. Trade receivables remained relatively stable at ₹508.84 lakh, up slightly from ₹502.26 lakh. Equity share capital remained unchanged at ₹576.62 lakh, while reserves excluding revaluation reserve declined to ₹458.95 lakh from ₹1,218.86 lakh.

Net cash generated from operating activities turned negative at ₹(5.66) lakh for FY26, compared to a marginal positive ₹0.09 lakh in FY25. This outflow was partly offset by cash generated from investing activities of ₹4.19 lakh, primarily from interest income. Cash and cash equivalents at year-end stood at ₹1.37 lakh.

What the Numbers Show

The divergence between the reported net profit and the qualified audit opinion highlights a significant risk in the company's asset quality. While the company posted a positive net profit for the year, the statutory auditors flagged ₹355.15 lakh in long-outstanding receivables—representing approximately 69% of total trade receivables—as potentially impaired. Management contends these receivables relate to legacy fishing net business transactions with long-standing customers and are being recovered progressively. However, the inability to quantify the ECL provision leaves the true profitability and asset value of the company uncertain, warranting caution for investors relying on the reported bottom line.

Garware Marine Industries Limited has approved the relocation of its registered office within Mumbai, effective June 23, 2026. The shift moves the corporate address from 3rd Floor, Prospect Chambers, D. N. Road, Fort, Mumbai – 400 001 to A/304, Naman Midtown, Senapati Bapat Marg, Prabhadevi (West), Mumbai – 400 013. The decision was taken during a board meeting held on June 22, 2026, via video conference.

The meeting commenced at 02:15 pm and concluded at 02:30 pm. The approval was granted pursuant to the provisions of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Pallavi P. Shedge, Company Secretary & Compliance Officer, signed the disclosure confirming the outcome.

Change in Address Details

The following table outlines the transition of the registered office address:

The relocation remains within the same city. Shareholders and stakeholders are advised to update their records accordingly.