Newtrac Foods & Beverages Limited returned to profitability in the quarter ended June 30, 2026, posting a net profit of ₹8.30 lakh compared to a net loss of ₹617.28 lakh in the preceding quarter. The company’s financial performance was driven by a sharp increase in revenue from operations, which rose to ₹2,200.01 lakh from ₹294.77 lakh in the quarter ended March 31, 2026. Total revenue for the quarter stood at ₹2,206.85 lakh.

The Board of Directors approved the unaudited financial results for the first quarter of FY27 on July 10, 2026. The results were reviewed by the audit committee and received a limited review report from Sarang Shivajirao Chavan and Associates, Chartered Accountants. While the auditors expressed an unmodified opinion on the results, they highlighted specific compliance issues observed during the review process.

Sarang Shivajirao Chavan and Associates noted that the company did not comply with certain statutory requirements under the Income-tax Act, 1961, relating to the timely deposit and filing of Tax Deducted at Source (TDS) statements. Consequently, interest, penalties, and other liabilities arising from this non-compliance have not been ascertained or provided for in the books of accounts. The auditors stated this constitutes a non-compliance that may have a material impact on the financial statements.

Additionally, the auditors reported that certain original sales and purchase invoices for the year were not available for verification. Management provided alternative supporting documentation and represented that the underlying transactions were duly recorded. Total expenses for the quarter increased to ₹2,198.55 lakh, primarily driven by purchases of stock-in-trade amounting to ₹2,149.99 lakh.

The company’s earnings per share (EPS) on a basic and diluted basis stood at ₹0.04 for the quarter, recovering from a negative EPS of ₹3.22 in the previous quarter. The paid-up equity share capital remained unchanged at ₹1,920.00 lakh. The trading window for dealing in the company's securities will remain closed for designated persons until 48 hours after the declaration of the financial results.

Financial Performance Summary

Newtrac Foods & Beverages Limited disclosed a disclaimer of opinion in its audit report for the financial year ended March 31, 2026, due to the unavailability of necessary records. The company's Board reviewed and approved the Statement on Impact of Audit Qualifications on May 30, 2026, confirming that the statutory auditor, NKSC & Co, could not verify the state of affairs, loss, or cash flows for the period. This disclosure highlights significant gaps in financial documentation required for the audit process.

The audit qualification arose because the management did not provide loan agreements, trade receivables and payables confirmations, or invoices and supporting vouchers for sales and purchases. Consequently, the auditor was unable to confirm or verify the financial position by alternative means. The company stated that the management is currently looking into the matter. The financial figures for FY26 remained unchanged despite the qualification, with a reported net loss of ₹636.96 lakh and earnings per share of -₹3.22.

Financial Performance for FY26

The company reported a total income of ₹1725.73 lakh and a total expenditure of ₹2362.69 lakh for the financial year ended March 31, 2026. The audit qualification did not result in adjustments to the reported figures, as the impact could not be quantified by the auditor or estimated by the management.

Auditor and Governance Details

The audit report was issued by NKSC & Co, the statutory auditor for the term. The statement was signed by Managing Director Mr. Bhavin Yogesh Shukla, CFO Mr. Harish Sharma, Audit Committee Chairman Mr. Drumil Ashok Gandhi, and Statutory Auditor Mr. Priyank Goyal. The company confirmed that the Audit Committee and the Board of Directors reviewed the statement on May 30, 2026, in compliance with SEBI LODR Regulations.