SEL Manufacturing Company Limited reported a net loss of ₹4,186 lakh for the quarter ended March 31, 2026, as total income from operations declined to ₹245.51 lakh. For the financial year ended March 31, 2026, the company recorded a net loss of ₹16,787.23 lakh on a total income of ₹1,564.65 lakh. The results were taken on record by the Board of Directors at its meeting held on May 28, 2026.

Financial Performance

The company’s expenses for the quarter stood at ₹4,667.51 lakh, significantly higher than its income, leading to a loss before tax of ₹4,186 lakh. For the full year, total expenses reached ₹18,907.78 lakh. The basic and diluted earnings per share (EPS) for the year were reported at (₹50.66).

Auditor’s Observations

Kamboj Malhotra & Associates, the statutory auditors, issued a qualified opinion on the financial results. The qualification arises because the company did not conduct impairment testing for Property, Plant & Equipment and Capital Work in Progress as required by Ind AS 36, citing financial constraints. Consequently, the potential impact of impairment on the financial statements could not be ascertained.

Material Uncertainty and Going Concern

The auditors highlighted a material uncertainty that casts significant doubt on the company’s ability to continue as a going concern. The company has incurred continuous losses since the implementation of its resolution plan in 2020-21, with cumulative losses totaling ₹80,878 lakh over the last five years. The current ratio deteriorated to 0.02:1 as of March 31, 2026, from 0.04:1 in the previous year, reflecting severe liquidity stress.

Operational Challenges and Defaults

SEL Manufacturing defaulted on a quarterly installment of ₹30,871.91 lakh due from September 30, 2023, to March 31, 2026, and failed to pay monthly interest and other charges amounting to ₹19,342.64 lakh for the period from July 2023 to March 2026. The company’s major plants remained shut for the majority of the year, and operations were sustained primarily through job work activities. The National Company Law Tribunal (NCLT), Chandigarh Bench, has granted a moratorium on payments until the next hearing.

Arr Ess Leading Edge Private Limited, a promoter of SEL Manufacturing , has confirmed that the promoter group did not create any new encumbrance on shares during the financial year ended March 31, 2026. The declaration, submitted to the stock exchanges, ensures compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters to disclose any pledge or encumbrance of shares to maintain transparency regarding shareholding patterns.

While no fresh encumbrances were reported in FY26, the promoter clarified that certain shares were already pledged in previous periods. The filing explicitly stated that the promoter and promoter group, including persons acting in concert, have not made any other encumbrance of shares, directly or indirectly, during the specified financial year.

The disclosure details the specific shareholding and pledged status of the promoter. The table below outlines the equity shares held and the corresponding number of shares that remain encumbered from prior periods.

The letter was addressed to BSE Limited, National Stock Exchange of India Limited, and the Chairperson of the Audit Committee of SEL Manufacturing Company Limited. Rajeev Bhalla, Director of Arr Ess Leading Edge Private Limited, signed the declaration on April 7, 2026.