Rama Petrochemicals FY26 net loss widens to ₹7.51 crore

1 min read     Updated on 14 Jul 2026, 06:50 PM
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AI Summary

Rama Petrochemicals reported a widened net loss of ₹7.51 crore for FY26 against ₹6.80 crore in FY25, with revenue rising to ₹30.79 lakh. The company remains engaged in trading activities and has not recommended a dividend.

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Rama Petrochemicals Limited reported a net loss of ₹7.51 crore for the financial year ended March 31, 2026, widening from a loss of ₹6.80 crore in the previous year. The total comprehensive loss for the year stood at ₹7.48 crore, compared to ₹6.85 crore in FY25.

The company's revenue from operations for FY26 was ₹30.79 lakh, a significant increase from ₹9.01 lakh in the preceding year. However, finance costs surged to ₹60.82 crore from ₹54.81 crore, impacting profitability. Employee benefit expenses also rose to ₹7.80 crore from ₹6.43 crore.

Financial Performance

Metric (₹ in lacs) FY26 FY25
Revenue from Operations 30.79 9.01
Total Expenses 78.22 68.97
Net Loss (75.10) (68.05)
Total Comprehensive Loss (74.76) (68.45)

Operational Details

During the year under review, the company did not undertake any manufacturing activities and was engaged solely in trading activities. In view of the loss, the Directors stated their inability to recommend any dividend for the year. The company has not declared any dividend since 1998.

The Board of Directors approved the conversion of 15,96,450 warrants into equity shares of face value ₹10 each issued to the Promoter Group. Consequently, the paid-up equity share capital increased from ₹11.72 crore to ₹13.32 crore during the financial year.

Corporate Governance

The company has appointed M/s. Khandelwal & Mehta LLP as Statutory Auditors for a second term of five years. The auditors issued a qualified opinion, drawing attention to a payment of ₹1.85 crore treated as 'Other Financial Assets' pending the release of collateral securities, which was not in accordance with generally accepted accounting principles.

Historical Stock Returns for Rama Petrochemicals

1 Day5 Days1 Month6 Months1 Year5 Years
0.0%0.0%-5.30%+9.04%+26.14%+284.81%

What specific measures will management implement to reduce the surging finance costs that are eroding profitability?

Does the company plan to resume manufacturing activities, or will it continue to focus solely on trading?

How will the recent conversion of warrants into equity shares impact the company's leverage and future capital structure?

1 Year Returns:+26.14%