Imp Powers Limited reported a standalone net loss of ₹78.21 lakh for the quarter ended June 30, 2026 (Q1FY27), compared to a loss of ₹199.70 lakh in the corresponding period of FY25. The company’s revenue from operations increased by 34% year-on-year to ₹3,878.44 lakh from ₹171.18 lakh in Q1FY25. This operational improvement came despite statutory auditors issuing a qualified opinion on the unaudited financial results, citing significant uncertainties regarding legacy trade receivables and asset valuations stemming from the company’s prior Corporate Insolvency Resolution Process (CIRP).

The Board of Directors approved the standalone and consolidated financial results at its meeting held on August 08, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside the results, the Board re-appointed Ms. Shilpa Shah as the Secretarial Auditor for Financial Year 2026–27 based on the recommendation of the Audit Committee. The Board also approved the re-appointment of Mr. Naveen Kumar Singh as Whole-time Director for a one-year term effective August 08, 2026, subject to shareholder approval at the ensuing General Meeting.

Financial Performance Overview

Standalone total income rose to ₹4,076.25 lakh from ₹171.48 lakh in Q1FY25, driven primarily by the surge in revenue from operations. However, total expenses also increased significantly to ₹4,097.05 lakh from ₹360.37 lakh, largely due to changes in inventories of finished goods and work-in-progress, which added ₹1,940.60 lakh to costs. Other income stood at ₹197.82 lakh, down from ₹0.30 lakh in the previous year’s quarter. The consolidated net loss attributable to shareholders was ₹77.45 lakh, compared to ₹200.19 lakh in Q1FY25.

Auditor’s Qualified Opinion

Statutory auditors BJS & Associates highlighted several material uncertainties in their limited review report. A substantial portion of trade receivables remains outstanding since before the commencement of the CIRP, with no expected credit loss (ECL) recognized against these balances. The auditors noted that the carrying value of these receivables may not comply with Ind AS 109 requirements, potentially leading to an overstatement of assets and understatement of losses.

Additionally, the company has not performed impairment assessments on its assets despite prolonged suspension of production activities during the CIRP and subsequent liquidation process. The auditors stated they could not determine if any impairment loss is required under Ind AS 36. Furthermore, deferred tax expenses and liabilities have not been recognized as per Ind AS 12, and actuarial valuations for employee benefit obligations remain incomplete.

What the Numbers Show

The dramatic increase in revenue from ₹171.18 lakh to ₹3,878.44 lakh signals a resumption of commercial operations following the change in management via the e-auction process. Electrify Energy Pvt Ltd, in consortium with Mr. Rakesh R Shah, paid ₹78 crore as the bid amount for the company. However, the distribution of sale proceeds remains incomplete pending final legal resolutions, including an appeal by STCI Finance Limited in the Supreme Court. Consequently, the company has not yet accounted for the consequential write-backs or write-offs of relevant balances, leaving the balance sheet heavily impacted by legacy items that have not been fully reconciled or impaired.

IMP Powers Limited will issue 3,23,00,000 equity shares to Electrify Energy Private Limited and 17,00,000 shares to eligible public shareholders pursuant to an order by the National Company Law Tribunal (NCLT), Ahmedabad. The resolution follows the acquisition of the target company as a going concern through an e-auction conducted under the Insolvency and Bankruptcy Board of India (IBBI) regulations. The total issuance amounts to ₹32.30 crore for the successful auction purchaser and ₹1.70 crore for public shareholders.

The NCLT order, dated 05.11.2024 in case IA 1387 (AHM) 2024 in CP (IB) 203 of 2020, granted relief and concessions allowing for the extinguishment and reduction of existing share capital. Electrify Energy Private Limited participated in the auction in consortium with Rakesh Ramanlal Shah. As a result of the order, Shah and his associates have been appointed as the promoter and promoter group of IMP Powers Limited.

The company has filed an application for in-principle approval with the stock exchanges to facilitate the listing of these shares. Until such approval is granted, the allotment of the shares and their subsequent listing remain pending. The disclosure was submitted by Rakesh Ramanlal Shah to BSE Limited and NSE Limited under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Rakesh Ramanlal Shah declared that neither he nor the promoter group, along with Persons Acting in Concert (PAC), held any equity shares of the target company as on 31st March, 2026. Furthermore, no encumbrance was made on the equity shares during the financial year ending on that date.

The following table details the proposed share allotment: