SPEL Semiconductor FY26 loss widens; removes CFO
SPEL Semiconductor Limited reported a net loss of ₹2,384.11 lakh for the fiscal year ended March 31, 2026, with revenue from operations declining to ₹628.00 lakh. The statutory auditors issued a qualified opinion citing material uncertainties regarding the company's status as a going concern. Additionally, the board removed Mr. Thiruvenkatachari Parthasarathy from the position of Chief Financial Officer effective May 19, 2026, due to continuous absence from office.
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SPEL Semiconductor Limited has reported a net loss of ₹2,384.11 lakh for the fiscal year ended March 31, 2026. The company's board approved the audited financial results during a meeting held on May 19, 2026. The performance reflects operational challenges, including the suspension of factory operations and the breakdown of major plant and machinery during the fourth quarter.
Financial Performance
For the year ended March 31, 2026, the company recorded a total income of ₹853.07 lakh, compared to ₹951.90 lakh in the previous fiscal year. Revenue from operations declined to ₹628.00 lakh from ₹786.42 lakh in the prior year. Total expenditure for the period was reported at ₹13,548.88 lakh. Consequently, the company reported a basic and diluted earnings per share (EPS) of (₹5.17) for the year.
| Metric | FY 2025-26 (₹ in Lakhs) | FY 2024-25 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 628.00 | 786.42 |
| Total Income | 853.07 | 951.90 |
| Total Expenditure | 13,548.88 | 17,575.70 |
| Net Profit/(Loss) | (2,384.11) | (2,104.56) |
| Earnings Per Share | (5.17) | (4.56) |
Auditor's Qualified Opinion
The statutory auditors, Venkatesh & Co., issued a qualified opinion on the standalone financial results. The qualification centers on material uncertainties that cast significant doubt on the company's ability to continue as a going concern. Key factors cited include the company's history of incurring losses and generating negative cash flows, significant reduction in employee strength due to resignations, and the breakdown of critical plant and machinery which halted production activities in the fourth quarter.
Additionally, the auditors noted that trade receivables amounting to ₹58.76 lakh and trade payables amounting to ₹326.98 lakh as of March 31, 2026, are subject to confirmation and reconciliation. The absence of independent balance confirmations prevented the auditors from determining the necessity of adjustments regarding these balances.
Operational and Management Updates
In response to the auditor's concerns, the management stated that it is taking active steps to dispose of 8.14 acres of surplus lease land to minimize liabilities. The company is also awaiting the release of India Semiconductor Mission 2.0 incentive guidelines for availing capital expenditure subsidies. Furthermore, SPEL Semiconductor is pursuing low-cost debt funding for business revamping and exploring potential customer collaborations for growth.
The board also approved the continuation of the suspension of factory operations, as previously decided in the meeting held on January 14, 2026. Additionally, the board approved the removal of the services of Mr. Thiruvenkatachari Parthasarathy as the Chief Financial Officer, effective from the close of business hours on May 19, 2026. The disclosure regarding the change was made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015. The reason cited for the cessation was removal due to continuous absence from office.
Historical Stock Returns for SPEL Semiconductor
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.35% | +2.21% | -2.43% | -7.37% | +15.76% | +1,124.07% |
Will SPEL Semiconductor's planned disposal of 8.14 acres of surplus lease land generate sufficient proceeds to meaningfully reduce liabilities and extend the company's operational runway?
How might the release of India Semiconductor Mission 2.0 incentive guidelines impact SPEL Semiconductor's ability to secure capital expenditure subsidies and revive its manufacturing operations?
Given the going concern doubt, auditor qualifications, and CFO removal, how will SPEL Semiconductor attract credible low-cost debt funding or strategic customer collaborations needed for business revamping?
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