SPP Polymer Limited reported a net loss of ₹416.27 lakh for the financial year ended March 31, 2026, reversing the net profit of ₹112.58 lakh recorded in the previous year. The company's revenue from operations rose to ₹11,066.69 lakh for FY26, up from ₹10,755.87 lakh in FY25, according to a filing with the National Stock Exchange of India.

The standalone audited financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on May 15, 2026. The statutory auditor, GSK & Associates LLP, conducted the audit in accordance with the Standards on Auditing specified under the Companies Act, 2013.

Financial Performance

For the half-year ended March 31, 2026, the company reported a net loss of ₹320.31 lakh, compared to a net profit of ₹5.65 lakh in the same period of the previous year. Total revenue for the half-year stood at ₹5,877.13 lakh. The company reported that it did not have any long-term contracts, including derivative contracts, with material foreseeable losses during the period.

The following table summarizes the key financial metrics for the year and half-year ended March 31, 2026:

Auditor's Observations

GSK & Associates LLP stated in its report that the company's management is responsible for the physical verification of property, plant, and equipment, which the auditors did not independently inspect. Any adjustments to these asset values could affect the profit and net value of the assets for the year ended March 31, 2026. Additionally, the auditors noted that trade receivables, payables, and other balances were not independently verified except on a test-check basis.

The auditor also highlighted that the company has some pending litigations which would impact its financial position, referring to Note No. 25 of the financial statements. The report confirmed that no funds were advanced or invested by the company to intermediaries for the benefit of ultimate beneficiaries, nor were any funds received from funding parties for such purposes.

Balance Sheet Highlights

The company's total equity and liabilities stood at ₹8,174.68 lakh as of March 31, 2026, compared to ₹8,053.15 lakh in the previous year. Share capital remained constant at ₹1,539.12 lakh, while reserves and surplus decreased to ₹3,075.32 lakh from ₹3,572.04 lakh. Short-term borrowings increased significantly to ₹1,272.05 lakh from ₹745.83 lakh in the prior year.

On the assets side, total assets matched the total equity and liabilities at ₹8,174.68 lakh. Inventories were recorded at ₹2,881.12 lakh, and trade receivables increased to ₹2,275.03 lakh from ₹1,624.34 lakh. Cash and cash equivalents improved to ₹6.45 lakh from ₹1.75 lakh.

SPP Polymer Limited announced its audited standalone financial results for the half year and year ended March 31, 2026, following a Board of Directors meeting held on May 15, 2026. The results were reviewed by the Audit Committee and approved by the Board, with statutory auditor M/s. GSK & Associates LLP (FRN: 013838N/N500003) issuing an unmodified audit opinion. The company, formerly known as SPP Food Products Private Limited, is exclusively engaged in the manufacturing of HDPE/PP Woven Fabric and Bags/Non Woven Fabric, constituting a single primary business segment.

Financial Performance: FY26 vs FY25

SPP Polymer swung to a net loss in FY26 after reporting a profit in the prior year. Total revenue for the year ended March 31, 2026 rose to ₹11,341.09 lakhs from ₹10,890.01 lakhs in FY25, driven by higher revenue from operations and other income. However, total expenses increased at a faster pace, resulting in a pre-tax loss of ₹418.35 lakhs against a pre-tax profit of ₹195.84 lakhs in FY25.

The following table summarises the key financial results for the full year:

Half-Year Performance Breakdown

For the second half of FY26 (half year ended March 31, 2026), SPP Polymer reported revenue from operations of ₹5,695.82 lakhs, compared to ₹5,370.87 lakhs in the first half (half year ended September 30, 2025) and ₹5,352.22 lakhs in the corresponding half year of FY25. Despite higher revenues in the second half, total expenses of ₹6,199.53 lakhs resulted in a loss before tax of ₹322.40 lakhs for the period, widening from a loss of ₹95.95 lakhs in the first half of FY26.

Balance Sheet Highlights

As at March 31, 2026, SPP Polymer's total assets stood at ₹8,174.68 lakhs, marginally higher than ₹8,053.15 lakhs as at March 31, 2025. Share capital remained unchanged at ₹1,539.12 lakhs, while reserves and surplus declined to ₹3,075.32 lakhs from ₹3,572.04 lakhs, reflecting the net loss for the year. Short-term borrowings increased to ₹1,272.05 lakhs from ₹745.83 lakhs, while long-term borrowings reduced to ₹19.08 lakhs from ₹26.14 lakhs.

Cash Flow Summary

SPP Polymer generated net cash of ₹170.39 lakhs from operating activities in FY26, a significant improvement from a net cash outflow of ₹982.73 lakhs in FY25. Net cash from investing activities was ₹12.10 lakhs, compared to an outflow of ₹484.43 lakhs in the prior year. Financing activities resulted in a net outflow of ₹177.79 lakhs in FY26, compared to an inflow of ₹1,461.06 lakhs in FY25, which had included proceeds from the issue of share capital of ₹2,448.50 lakhs. Overall, cash and cash equivalents increased to ₹6.45 lakhs at the end of FY26 from ₹1.75 lakhs at the beginning of the year.

Audit and Compliance

The financial results were prepared in accordance with Accounting Standards (AS) as prescribed under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. The auditors noted key audit matters relating to physical verification of property, plant and equipment, and balance confirmation with trade receivables, trade payables, loans and advances, stating that their opinion was not modified in respect of these matters. The company also disclosed some pending litigations that may impact its financial position, as referenced in Note No. 25 of the financial statements. The results were filed in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.