Praxis Home Retail Limited reported a widened net loss of ₹6,661.51 lakh for the financial year ended March 31, 2026, compared to a loss of ₹3,497.85 lakh in the previous year. The loss was significantly impacted by an exceptional item of ₹10,100 lakh, recognized as an expected credit loss (ECL) on a security deposit receivable from Future Enterprises Limited. M/s. Singhi & Co., the statutory auditors, issued an unmodified opinion on the financial results but highlighted a material uncertainty related to the company's ability to continue as a going concern due to its negative net worth and cash losses.

The board approved the audited financial results for the quarter and year ended March 31, 2026, at its meeting held on May 29, 2026. The company recorded a total income of ₹10,752.07 lakh for the year, a decrease from ₹15,811.65 lakh in FY25. Revenue from operations stood at ₹9,566.21 lakh, down from ₹11,896.96 lakh in the prior year. For the quarter ended March 31, 2026, the company reported a net loss of ₹11,529.87 lakh, largely driven by the exceptional provision. The audited financial results were published in newspapers including the Free Press Journal and Navshakti Daily on May 31, 2026, in compliance with Regulation 47 of the SEBI (LODR) Regulations, 2015.

Financial Performance

The auditors noted that the company incurred a cash loss of ₹4,058.31 lakh during the year and that its current liabilities exceeded its current assets by ₹5,994.33 lakh as of March 31, 2026. Additionally, the company received a notice under the Insolvency and Bankruptcy Code, 2016 from an operational creditor. Despite these conditions, the financial statements were prepared on a going concern basis based on management's assessment.

Corporate Actions

The board re-appointed M/s Protune KSA Consultants Private Limited as the internal auditor for FY 2026-27. Furthermore, the Audit Committee approved a statement of deviation regarding the utilization of funds raised through a rights issue. The company reported a minor deviation involving the reallocation of ₹7.42 lakh from issue-related expenses to the repayment of trade payables and general corporate purposes. The rights issue, which opened on August 7, 2025, and closed on August 18, 2025, raised ₹4,958.00 lakh.

Praxis Home Retail Limited has entered into a loan agreement with CMS IT Services Private Limited to avail an unsecured loan amounting to ₹5.5 crore. The agreement was executed on May 22, 2026, pursuant to Regulation 30 of the SEBI LODR Regulations.

The funds raised through this inter-corporate loan will be utilized for the company's working capital requirements and general corporate purposes. The loan carries an interest rate of 11% per annum and is initially sanctioned for a period of six months, subject to extension via a mutual written agreement.

Key Details of the Agreement

The transaction does not involve any related parties, and no security has been provided for the loan. The total amount outstanding matches the sanctioned amount of ₹5.5 crore.

The company has confirmed that there is no shareholding in the lending entity, and the transaction does not fall within related party transactions. The information has been disclosed to the stock exchanges and is available on the company's website.