Talwalkars Better Value Fitness Limited reported a net loss of ₹269.85 lakh for the quarter ended September 30, 2025, as the company operates under new management following its acquisition. The financial results, approved by the Board of Directors on May 30, 2026, reflect the impact of the Corporate Insolvency Resolution Process (CIRP) and the subsequent adoption of Fresh Start Accounting. The company’s ability to continue as a going concern is subject to material uncertainties, including the lifting of trading suspensions on BSE and NSE and the completion of pending SEBI approvals.

The standalone financial results for Q2FY26 show total expenses of ₹269.85 lakh, driven primarily by depreciation and amortisation expenses of ₹269.85 lakh. Revenue from operations remained at nil for the quarter and the half-year ended September 30, 2025. Consequently, the loss before tax for the quarter stood at ₹269.85 lakh, widening from a loss of ₹505.20 lakh in the corresponding period of the previous year. For the half-year ended September 30, 2025, the net loss was ₹539.70 lakh.

Key Financial Highlights

The following table outlines the financial performance of Talwalkars Better Value Fitness Limited for the quarter and half-year ended September 30, 2025:

NCLT Relief Order and Accounting Changes

The financial statements incorporate the effects of a subsequent event: the NCLT Relief Order dated February 26, 2026. This order legally confirmed the reconstitution of the Board, the permanent extinguishment of all pre-transfer dues and liabilities, and the cancellation of existing equity share capital without payout. Pursuant to this order, the company adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. Under this method, pre-transfer liabilities were written back to Capital Reserve, and transferred assets were recorded at management-determined values.

Going Concern and Comparative Figures

The independent auditor’s review report highlighted a material uncertainty regarding the company’s status as a going concern, contingent upon the successful regularisation of regulatory compliances and the resumption of share trading. Additionally, the auditor noted that comparative financial information for previous periods was compiled on a best-effort basis from fragmented records, as the company was under active liquidation proceedings during that time. These figures have not been subjected to the auditor’s review.

Balance Sheet and Cash Flows

As of September 30, 2025, the company’s total assets stood at ₹26,647.89 lakh, comprising non-current assets of ₹22,658.98 lakh and current assets of ₹3,988.90 lakh. Equity and liabilities totaled ₹26,647.89 lakh, with equity at ₹1,704.90 lakh following the cancellation of previous share capital. The unaudited cash flow statement for the six months ended September 30, 2025, reported cash and cash equivalents of ₹3,056.42 lakh, with no net cash generated from operating, investing, or financing activities during the period.

Talwalkars Better Value Fitness Limited reported a net loss of ₹269.85 lakh for the quarter ended June 30, 2025, as revenue from operations remained at ₹0.00 lakh. The loss narrowed compared to the preceding quarter ended March 31, 2025, which recorded a net loss of ₹570.55 lakh. The financial results have been prepared on a going concern basis, subject to material uncertainties regarding the lifting of trading suspensions and completion of SEBI approvals.

The company’s total expenses for Q1FY26 stood at ₹269.85 lakh, driven primarily by depreciation and amortization expenses of ₹269.85 lakh. In contrast, the preceding quarter included liquidation expenses of ₹69.68 lakh and higher depreciation costs of ₹504.50 lakh. The basic and diluted earnings per share (EPS) for the period were reported at a loss of ₹0.87, improving from a loss of ₹1.84 in the prior quarter.

Key Financial Highlights

NCLT Relief and Fresh Start Accounting

The financial results follow a subsequent event involving the National Company Law Tribunal (NCLT). On February 26, 2026, the Hon'ble NCLT passed a Relief Order that legally confirmed the reconstitution of the Board and the permanent extinguishment of all pre-transfer dues and liabilities. Consequently, the company adopted Fresh Start Accounting effective from the Transfer Date of November 7, 2024. Under this accounting method, pre-transfer liabilities have been written back to Capital Reserve, and transferred assets are recorded at values determined by the management.

Capital Structure and Regulatory Status

Pursuant to the NCLT order, the entire existing equity share capital of the company has been cancelled without payment to shareholders. The company is entitled to issue 1,00,00,000 new equity shares. As of the date of these results, trading in equity shares remains suspended on BSE and NSE. The company stated it is complying with procedural requirements to secure pending SEBI approvals and regularize regulatory compliances to resume trading.

Auditor’s Review and Comparative Figures

S K Bhavsar & Co., Chartered Accountants, conducted the review of the unaudited standalone financial results. The auditor noted that comparative financial information for previous periods was compiled on a best-effort basis from fragmented records, as the company was under active liquidation proceedings during those times. The auditor expressed no conclusion on these comparative figures, citing the non-preparation of formal Ind AS compliant financial statements prior to the Transfer Date.