Swastik Pipe Limited reported a widened net loss of ₹5,756.12 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹721.79 lakh in the previous year, primarily due to the reversal of previously recognized interest income and significant financial stress. The company's total income for the year stood at ₹39,425.61 lakh, while total expenses amounted to ₹48,035.00 lakh. The statutory auditor, O. Aggarwal & Co., issued a qualified opinion on the annual financial results, highlighting material uncertainties that cast significant doubt on the company's ability to continue as a going concern.

Audit Qualifications and Financial Impact

The auditor drew attention to the reversal of debit notes amounting to ₹3,344.12 lakhs during the year, which were originally recognized as income in the previous financial year. This amount includes ₹3,280.49 lakhs related to interest on delayed payments from Public Health & Engineering Departments of Jammu & Kashmir and Himachal Pradesh. Due to the uncertainty regarding the ultimate recoverability of these claims, the reversal resulted in an understatement of profit or overstatement of loss for the year by ₹3,344.12 lakhs. Additionally, the auditor noted the absence of sufficient evidence regarding the accuracy of trade receivables, trade payables, and other balances, preventing the determination of potential adjustments.

Going Concern Uncertainty and NPA Status

The company experienced significant financial stress during the year, leading to the classification of its bank borrowings as Non-Performing Assets (NPAs). The aggregate overdue amount towards principal and interest payable to banks stood at ₹13,928.81 Lakhs as of the balance sheet date. While management asserts the company remains a going concern based on ongoing negotiations for a One-Time Settlement (OTS) with lenders and expected promoter support, the auditor stated there is insufficient evidence to support the successful conclusion of these arrangements. Consequently, material uncertainty exists regarding the company's ability to generate adequate future cash flows to meet its obligations.

Operational Performance and Board Decisions

Revenue from operations for FY26 declined to ₹38,633.97 lakh from ₹74,716.65 lakh in the previous year. The board of directors, in its meeting held on May 26, 2026, approved the audited financial results and re-appointed M/s NN & Associates as Cost Auditors and M/s Ravi K Aggarwal & Associates as Internal Auditors for the financial year 2026-27. The company also successfully completed an OTS arrangement with Vivriti Capital Ltd, paying ₹356.00 Lakhs towards the settlement of outstanding dues amounting to ₹723.00 Lakhs.

Financial Results for FY26

Swastik Pipe Limited has notified the Listing Compliance Department of the National Stock Exchange of India Limited regarding the resignation of its Independent Director, Sh. Vishal Dugar, with effect from May 12, 2026. The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was signed by Managing Director Sandeep Jain (DIN: 00165391).

Resignation Details

The following table summarizes the key particulars of the change in directorship as disclosed by the company:

Director's Communication

In his resignation letter addressed to the Board of Directors of Swastik Pipe Limited, Sh. Vishal Dugar confirmed May 12, 2026 as his last working day. He acknowledged his tenure with the company and stated that he had taken the decision to move on and explore a different path. The resignation was formally accepted by the company, as evidenced by the acceptance stamp on the letter.

Regulatory Compliance

The disclosure was made in accordance with SEBI circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, along with a copy of the resignation letter enclosed as an annexure. Swastik Pipe Limited is a manufacturer and exporter of galvanised and green steel pipes and tubes, hollow sections, CR coils and strips, and holds the status of a Government Recognised Star Export House. Its registered office is located at 1/23 B, Asaf Ali Road, New Delhi-110002.