Neogem India Limited has filed its audited financial results for the quarter and year ended March 31, 2026, reporting a net loss of Rs 20.86 lakh for the fiscal year. The company, which has ceased manufacturing activities since January 2018, continues to face significant financial challenges, including non-performing assets and an adverse opinion from its statutory auditors regarding its ability to continue as a going concern. The Board of Directors approved these results at a meeting held on May 18, 2026.

Financial Performance for FY26 and Q4

The company reported a total loss of Rs 20.86 lakh for the year ended March 31, 2026, compared to a loss of Rs 31.56 lakh in the previous year. For the quarter ended March 31, 2026, the net loss stood at Rs 2.06 lakh, narrowing from Rs 8.55 lakh in the corresponding quarter of the previous year. Revenue from operations remained nil for both the quarter and the year, while other income was nominal. Total expenses for the year amounted to Rs 20.86 lakh, down from Rs 31.65 lakh in the prior year.

Auditor's Adverse Opinion and Going Concern Risks

Ashok Bairagra & Associates, the statutory auditors, issued an adverse opinion on the standalone financial results. The report highlights that the company is unable to repay its current and non-current liabilities as of March 31, 2026. This inability to service debts indicates a material uncertainty that casts significant doubt on the company's ability to continue as a going concern. The auditors noted that the financial statements do not disclose the required facts regarding this uncertainty.

The auditors also emphasized that the company has a negative net worth of Rs 35.93 crore. Additionally, if a provision for unrealized sundry debtors outstanding for more than three years (amounting to Rs 41.11 crore) were made, the company's current liabilities would exceed its current assets. The company has not received balance confirmations from bankers since March 31, 2016, and has not provided for interest payable on cash credit limits from Punjab National Bank and Bank of India, which have been classified as non-performing assets since 2016.

Operational Status and Management Response

Neogem India has stopped manufacturing activities since January 1, 2018, and no detailed plans for the commencement of business activity in the near future have been made available to the auditors. Management stated that the financial statements have been prepared on a going concern basis in view of expectations regarding the successful outcome of the company's restructuring and revival efforts. However, the auditors expressed an inability to comment on the ability of the company to continue as a going concern due to the prevailing uncertainties.

Neogem India Limited has received a disclosure from promoter group member Rekha Mahindra Doshi regarding the release of pledge on equity shares under the Securities and Exchange Board of India's Substantial Acquisition of Shares and Takeovers Regulations, 2011. The disclosure, dated April 15, 2026, pertains to the complete release of encumbrance on Doshi's shareholding in the Mumbai-based company.

Pledge Release Details

The pledge release encompasses Doshi's entire holding in Neogem India Limited, covering substantial equity participation in the company. The transaction represents a significant development in the promoter group's shareholding structure.

Regulatory Compliance

The disclosure was made pursuant to Regulation 31(2) of SEBI's SAST Regulations, which mandates promoters and persons acting in concert to inform stock exchanges about encumbrance-related events. Doshi submitted the required format detailing the release of encumbrance to BSE Limited, where Neogem India's shares are listed under scrip code 526195.

Shareholding Impact

Prior to the pledge release, Doshi held 1089950 shares representing 13.34% of Neogem India's total share capital, with the entire holding under encumbrance. Following the release executed on January 23, 2026, her post-event holding of encumbered shares has reduced to zero, indicating complete removal of the pledge. The disclosure confirms that no shares remain encumbered in favor of any entity post this transaction.

Corporate Information

Neogem India Limited operates from its registered office at G-32 Gems & Jewellery Complex II, 2nd Floor SEEPZ, Andheri (E), Mumbai. The company's shares are listed on BSE Limited, and this pledge release represents a significant corporate action affecting promoter group shareholding patterns. The disclosure maintains transparency in promoter shareholding structures as mandated by securities regulations.