Precision Metaliks reports net loss for FY26 as operations halt
Precision Metaliks Limited reported a net loss of ₹930.82 lakh for FY26 against a profit of ₹79.41 lakh in FY25, with revenue from operations dropping to ₹1,046.31 lakh. The auditors flagged a halt in production and significant overdue receivables, casting doubt on the company's going concern status.
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Precision Metaliks Limited reported a net loss of ₹930.82 lakh for the year ended March 31, 2026, reversing the profit of ₹79.41 lakh recorded in the previous fiscal year. The company's revenue from operations fell to ₹1,046.31 lakh in FY26 from ₹12,712.92 lakh in FY25. The financial performance was adversely impacted by a default from a major customer and a subsequent halt in production, raising concerns about the company's ability to continue as a going concern.
The Board of Directors approved the audited standalone financial results for the half-year and year ended March 31, 2026 at a meeting held on May 30, 2026. PPKG & Co, Chartered Accountants, issued an audit report with an unmodified opinion on the standalone financial results. However, the auditors highlighted significant uncertainties, noting that the production process has come to a halt and that the company's ability to continue as a going concern is subject to uncertainty.
Total expenses for the year increased to ₹2,396.26 lakh from ₹13,075.19 lakh in the previous year. The company reported a loss on foreign exchange of ₹819.33 lakh compared to ₹28.76 lakh in FY25. Finance costs also rose to ₹346.29 lakh from ₹376.69 lakh in the prior year. The basic and diluted earnings per share (EPS) stood at (₹4.05) for FY26, compared to ₹0.35 in the previous year.
The balance sheet as of March 31, 2026, showed total assets of ₹17,321.64 lakh, a decrease from ₹21,222.74 lakh in the previous year. Cash and cash equivalents plummeted to ₹48.72 lakh from ₹4,123.75 lakh at the end of FY25. Trade receivables stood at ₹14,438.04 lakh, while short-term borrowings reduced significantly to ₹123.11 lakh from ₹3,939.39 lakh.
The cash flow statement revealed a net decrease in cash and cash equivalents of ₹4,075.03 lakh during the year. Net cash used in operating activities was ₹4,147.34 lakh. The company confirmed that there was no deviation or variation in the use of proceeds raised through the preferential issue of equity shares, which amounted to ₹3,216.00 lakh.
Financial Performance for FY26
| Particulars | Year Ended 31-03-2026 (₹ in Lakhs) | Year Ended 31-03-2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 1,046.31 | 12,712.92 |
| Total Revenue | 1,464.93 | 13,153.54 |
| Total Expenses | 2,396.26 | 13,075.19 |
| Profit/(Loss) Before Tax | (931.33) | 78.35 |
| Net Profit/(Loss) for the Period | (930.82) | 79.41 |
| Earnings Per Share (Basic) | (4.05) | 0.35 |
Historical Stock Returns for Precision Metaliks
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.82% | -10.97% | -13.75% | -44.35% | -67.91% | -90.32% |
What specific turnaround strategies or capital infusion plans will management implement to address the going concern uncertainty?
Does the company have a recovery plan for the ₹14,438.04 lakh in trade receivables given the major customer default?
How does the company intend to resume production operations, and what is the estimated timeline for restart?
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