Insilco reports ₹79 lakh Q1 loss as liquidation nears NCLT closure
Insilco Limited posted a net loss of ₹79 lakh in Q1FY27, driven by administrative costs during its ongoing voluntary liquidation. The company reported zero revenue, with total income of ₹8 lakh from interest. The liquidation process, completed in July 2025, awaits final NCLT approval for dissolution, expected on July 30, 2026.
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Insilco Limited reported a net loss of ₹79 lakh for the quarter ended June 30, 2026 (Q1FY27), a narrowing from the ₹95 lakh loss recorded in the corresponding period of the previous year. The company, which has been under voluntary liquidation since June 25, 2021, continues to operate without any business activity, resulting in zero revenue from operations. Total income for the quarter stood at ₹8 lakh, derived entirely from other income, primarily interest on financial assets. The National Company Law Tribunal (NCLT), Allahabad Bench, has listed the matter for final disposal of the distribution application and dissolution on July 30, 2026, marking the imminent end of the corporate entity.
The Board of Directors met on July 28, 2026, to approve the unaudited financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditor, Shiv & Associates. The Board also appointed Manmohan Juneja as an Additional Director in the category of Non-Executive Independent Director for a term of five years, effective from August 4, 2026, to August 3, 2031, subject to shareholder approval. He was concurrently appointed as Chairman of the Board with effect from August 4, 2026.
Financial Performance
The company incurred total expenses of ₹85 lakh in Q1FY27, up from ₹48 lakh in the previous quarter and ₹101 lakh in the same quarter last year. Employee benefits expense remained stable at ₹7 lakh. Other expenses rose to ₹78 lakh from ₹40 lakh in the prior quarter, driven by legal and professional fees of ₹46 lakh and miscellaneous expenses of ₹17 lakh. Interest income contributed ₹8 lakh to other income, consistent with the previous quarter and the corresponding period last year. A tax expense of ₹2 lakh was recorded for the period.
| Particulars | Q1FY27 (₹ Lakh) | Q4FY26 (₹ Lakh) | Q1FY26 (₹ Lakh) | FY26 (₹ Lakh) |
|---|---|---|---|---|
| Revenue from operations | - | - | - | - |
| Other income | 8 | 9 | 8 | 37 |
| Total Income | 8 | 9 | 8 | 37 |
| Employee benefits expense | 7 | 8 | 7 | 28 |
| Other expenses | 78 | 40 | 94 | 276 |
| Total Expenses | 85 | 48 | 101 | 304 |
| Net Loss | (79) | (41) | (95) | (276) |
Liquidation Status and Legal Proceedings
Ms. Kapila Gupta, the Liquidator, provided an update on the voluntary liquidation process to the Board. The liquidation process was completed on July 18, 2025, but regulatory delays extended the timeline beyond the prescribed 270 days. The Liquidator filed a dissolution application with the NCLT, Allahabad Bench, on July 21, 2025. The NCLT sought reports from various authorities, including the Income Tax Department, SEBI, and the Registrar of Companies (ROC). As of April 6, 2026, the Income Tax Department’s right to file a reply was struck off due to non-compliance. The matter is listed before the NCLT on July 30, 2026, for final disposal of the distribution application and dissolution.
Additionally, proceedings continue before the Labour Court, Rampur, regarding claims by 35 former employees seeking reinstatement and alleging illegal termination under the Voluntary Retirement Scheme (VRS). The Company has applied for the refund of VRS amounts paid to these employees. The Labour Court dismissed objections regarding the Liquidator’s authority to sign pleadings but reserved orders on the refund application, which remains pending.
What the Numbers Show
The narrowing net loss in Q1FY27 compared to Q1FY26 reflects a reduction in other expenses, particularly legal and professional fees, which dropped from ₹59 lakh to ₹46 lakh. However, the absence of operational revenue underscores the company’s complete cessation of business activities following the denial of its Consent to Operate by the Uttar Pradesh Pollution Control Board in 2019. The financial statements have not been prepared on a going concern basis, reflecting the terminal nature of the company’s operations. The primary financial activity now consists of winding down liabilities and distributing remaining assets to shareholders.
What are the potential tax implications for shareholders regarding the final distribution of assets upon the company's dissolution?
How might the pending Labour Court decision on VRS refunds impact the total distributable surplus available to equity shareholders?
Could the appointment of Manmohan Juneja as Chairman signal any strategic maneuvering to preserve value or address residual liabilities before dissolution?
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