Owais Metal FY26 profit falls 96% as revenue drops 42%
Owais Metal and Mineral Processing Limited reported a 96.5% decline in net profit for the financial year ended March 31, 2026, to ₹165.04 lakh, down from ₹4701.91 lakh in the previous year. Revenue from operations decreased by 42.4% to ₹12291.50 lakh, primarily due to the suspension of operations at the Udaipur unit. The Board approved the audited standalone financial results, which received an unmodified opinion from statutory auditors.
*this image is generated using AI for illustrative purposes only.
Owais Metal and Mineral Processing Limited reported a sharp decline in financial performance for the financial year ended March 31, 2026, with net profit falling 96.5% to ₹165.04 lakh. The company's revenue from operations dropped 42.4% to ₹12291.50 lakh compared to the previous year, significantly impacting its bottom line and operational stability.
The Board of Directors approved the audited standalone financial results for FY26 and the half-year ended March 31, 2026, during a meeting held on May 28, 2026. Statutory auditors Jay Gupta & Associates issued an unmodified opinion on the results, though they highlighted material uncertainties regarding the company's ability to continue as a going concern due to operational suspensions and financial defaults.
Financial Performance
The deterioration in financial metrics was driven by a substantial decrease in turnover and operating margins. Profit before interest, depreciation, and tax for FY26 stood at ₹859.92 lakh, a significant reduction from ₹6698.59 lakh in the previous year. The second half of the financial year was particularly severe, with turnover remaining at only ₹29.86 lakh.
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 12291.50 | 21341.06 |
| Total Income | 12424.45 | 21449.70 |
| Total Expenses | 12196.43 | 15123.10 |
| Profit Before Tax | 228.02 | 5972.87 |
| Net Profit | 165.04 | 4701.91 |
| Basic EPS | 0.91 | 25.86 |
Operational Challenges and Auditor Observations
The auditors noted that the suspension of operations at the company's Udaipur unit was the primary reason for the decline in operating margins. Additionally, the company has defaulted on the repayment of certain loan obligations, and statutory dues relating to income tax for the last two financial years remain unpaid as of the reporting date.
Trade receivables and advances recoverable from related parties stood at ₹5176.82 lakh as of March 31, 2026, up from ₹4396.98 lakh in the prior year. The auditors emphasized that if these conditions persist, they will adversely affect future business operations and financial stability.
Assets and Liabilities
The company's total assets decreased to ₹18160.09 lakh as of March 31, 2026, from ₹19783.03 lakh a year earlier. Current assets contracted significantly to ₹6446.11 lakh, largely due to reductions in trade receivables and inventories. Cash and cash equivalents also dwindled to ₹14.66 lakh from ₹105.03 lakh, reflecting tighter liquidity conditions.
Historical Stock Returns for Owais Metal & Mineral Processing
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.99% | -8.45% | -35.82% | -63.52% | -78.26% | -51.07% |
What specific steps is management taking to resume operations at the suspended Udaipur unit?
Does the company have a viable plan to renegotiate loan terms or secure new funding to address the default?
How feasible is the recovery of the ₹5176.82 lakh in trade receivables from related parties given the current liquidity crisis?
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