Mishtann Foods publishes FY26 results amid audit qualifications
Mishtann Foods published its audited financial results for FY26, reporting a net profit of ₹599.37 lakh and revenue of ₹34,841.57 lakh. The results were approved by the Board on May 30, 2026, and published in the Financial Express on June 1, 2026. The statutory auditors issued a qualified opinion due to a SEBI show cause notice regarding alleged fictitious transactions and misutilisation of rights issue proceeds. Additionally, the company faces significant statutory liabilities, including GST and income tax demands, which auditors noted create material uncertainty about the company's status as a going concern.
*this image is generated using AI for illustrative purposes only.
Mishtann Foods published its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, in the Financial Express on June 1, 2026. The company reported a net profit of ₹599.37 lakh for the financial year, alongside revenue from operations of ₹34,841.57 lakh. For the quarter ended March 31, 2026, the company recorded a net profit of ₹4.89 lakh on revenue of ₹3,084.28 lakh. The Board of Directors approved these results at a meeting held on May 30, 2026.
The statutory auditors, H Thakkar & Co. LLP, issued a qualified opinion on the standalone and consolidated financial results. The qualification stems from an interim order cum show cause notice dated December 5, 2024, from the Securities and Exchange Board of India (SEBI). The regulator alleged that a substantial portion of sales and purchase transactions recorded between FY 2017-18 and FY 2023-24 were fictitious and alleged misutilisation of rights issue proceeds amounting to ₹4,990.00 lakhs. The management has denied the allegations and is pursuing legal remedies.
Auditors further noted that the company failed to implement accounting software with an audit trail feature as required under the Companies (Accounts) Rules, 2014. Additionally, the company did not carry out impairment assessment or Expected Credit Loss evaluation for trade receivables amounting to ₹59,370.57 lakhs as of March 31, 2026. Due to ongoing regulatory proceedings, auditors stated they are unable to determine the extent of adjustment required for impairment loss.
The company faces significant statutory liabilities, including a Goods and Services Tax (GST) demand of ₹20,684.38 lakhs for the period July 1, 2017, to July 17, 2022, and an unpaid income tax liability of ₹166.89 lakhs for FY 2025-26. A disputed income tax demand of ₹11,744.00 lakhs is also pending adjudication. The auditors highlighted that these matters, combined with substantial trade receivables, indicate material uncertainty that may cast significant doubt on the company's ability to continue as a going concern.
In other decisions, the Board appointed M/s. Mikil Vora & Associates as Internal Auditors for FY 2026-27 and M/s. J. M. Patel & Bros. as Tax Auditors for Assessment Year 2026-27.
Financial Performance (Standalone)
| Particulars | Q4 FY26 (₹ in Lakhs) | FY26 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 3,084.28 | 34,841.57 |
| Total Expenses | 3,068.63 | 33,935.82 |
| Profit Before Tax | 17.07 | 918.81 |
| Net Profit | 4.89 | 599.37 |
| Basic Earnings Per Share | 0.00 | 0.06 |
Historical Stock Returns for Mishtann Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.02% | -4.89% | -16.88% | -19.79% | -24.47% | +25.48% |
What is the expected timeline for the resolution of the SEBI regulatory proceedings, and how might a potential adverse ruling impact the company's liquidity?
Given the material uncertainty highlighted by auditors, does the company have a specific contingency plan to address the ₹20,684.38 lakh GST demand if enforced?
How will the management address the lack of an audit trail-compliant accounting software to ensure compliance with the Companies (Accounts) Rules in the upcoming fiscal year?
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