The board of Toyam Sports approved its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, on September 18, 2026. The company reported a widening net loss amid negligible revenue generation and significant regulatory scrutiny.

Standalone net loss rose to ₹26.73 lakh in Q1FY27, compared to a loss of ₹14.44 lakh in the corresponding quarter of FY26. Consolidated net loss stood at ₹125.78 lakh, down from ₹343.16 lakh in the previous quarter but higher than the ₹70.87 lakh loss recorded in Q1FY26.

Financial Performance

Revenue from operations remained minimal at ₹5.50 lakh on a standalone basis, identical to the consolidated figure. This compares to zero revenue in the same quarter last year and ₹0.30 lakh in the preceding quarter of FY26. For the full year ended March 31, 2026, consolidated revenue was ₹91.74 lakh, while standalone revenue was just ₹0.65 lakh.

Total expenses surged to ₹32.32 lakh standalone and ₹131.37 lakh consolidated. Other expenses accounted for ₹31.76 lakh of the standalone total, while employee benefits expense drove the consolidated cost structure at ₹95.60 lakh.

What the Numbers Show

The financial data reveals a stark divergence between operational activity and cost structure. While revenue from operations is negligible at ₹5.50 lakh, other expenses alone consumed ₹31.76 lakh on a standalone basis—representing nearly 98% of total expenses. This indicates that the company’s current burn rate is driven almost entirely by non-operational overheads rather than core business costs, as purchase of stock and operating expenses remained nil.

Audit Qualifications and Regulatory Risks

Statutory auditors ASGR & Co issued a qualified opinion on the financial statements, citing multiple material concerns:

• Failure to provide for impairment of financial assets using the Expected Credit Loss (ECL) approach under Ind AS 109, despite finance activities constituting over 50% of funds.
• Non-compliance with statutory liabilities, including Professional Tax and TDS, attributed by management to fund shortages from losses in the LLC T20 Cricket League.
• Pending investigation by the Securities Exchange Board of India (SEBI), with some shares frozen by the Enforcement Directorate (ED).
• Uncertainty regarding the applicability of Section 45-IA of the RBI Act, given substantial outstanding loans and advances.

Management stated it does not foresee potential credit losses on financial instruments and confirmed cooperation with SEBI proceedings. However, the auditors noted they could not quantify the impact of these matters on the financial results.

Toyam Sports Ltd has filed a disclosure of the impact of audit qualifications for its standalone and consolidated financial results for the quarter and year ended March 31, 2026, pursuant to SEBI Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016, and Regulation 33/52 of the SEBI (LODR) (Amendment) Regulations, 2016. The disclosure was submitted to the Bombay Stock Exchange and The Metropolitan Stock Exchange of India Ltd on July 27, 2026, and was signed by Company Secretary Nayan Sablok.

Standalone Financial Performance

The standalone financial results for the year ended March 31, 2026, reflect a company under significant financial stress. The audit figures and adjusted figures remain identical across all parameters, indicating that no adjustments were made for the audit qualifications raised. The key standalone metrics are presented below:

Consolidated Financial Performance

The consolidated financial results for the year ended March 31, 2026, present a materially larger net loss compared to the standalone figures, primarily reflecting the performance of the company's subsidiaries. As with the standalone results, audit figures and adjusted figures are identical, with no adjustments recorded against the qualifications. The consolidated metrics are as follows:

Audit Qualifications: Key Concerns

Auditors from A S G R & Co., Chartered Accountants (ICAI Firm Reg. No. 148769W), issued a qualified opinion on both the standalone and consolidated financial results. The qualification is classified as repetitive, having been raised in prior periods as well. The specific audit concerns raised cover six areas:

• ECL Impairment (Ind AS 109): The company has not provided for impairment of financial assets using the Expected Credit Loss approach. Since financial activities account for over 50% of the company's funds, auditors stated they are unable to assess and quantify the effect on financial results.
• Impairment of Loans and Advances (Ind AS 36): No impairment analysis has been carried out on loans and advances extended to various companies, despite indications of impairment. Auditors are unable to opine on the materiality or recoverability of these amounts.
• Potential NBFC Registration Requirement: During the previous year ended March 31, 2025, and the year ended March 31, 2026, financial assets exceeded 50% of total assets and income from financial assets exceeded 50% of total revenue. Auditors noted that this may require compliance with Section 45-IA of the RBI Act, 1934, and Section 186 of the Companies Act, but relevant compliance information was not provided.
• SEBI Investigation and Share Freezing: The company received notices from SEBI during the period. The Enforcement Directorate has also frozen certain shares. The financial impact of these proceedings for the quarter and year ended March 31, 2026, is currently not ascertainable, and management has not disclosed whether other proceedings are ongoing.
• Merchandising Agreements: The company has not assessed the economic benefits realizable under its Merchandising Agreements, and auditors are unable to express an opinion on the outcome.
• Statutory Non-Compliance: The company has not complied with statutory obligations including Professional Tax and TDS payments. Auditors were not provided with relevant compliance information and are unable to comment on the financial and legal implications.

Management's Response to Qualifications

Management provided responses to the unquantified audit qualifications. On the ECL and impairment matters, management stated that it does not foresee any potential credit loss on the financial instruments, asserting that the instruments are secure and the counterparties are creditworthy. Management also noted that loans and advances previously identified as non-recoverable have already been written off. Regarding the SEBI investigation, management confirmed that the company is fully cooperating with SEBI and has responded to all notices received, adding that no other proceedings related to the share freezing are known to it. On the merchandising agreements, management noted that the counterparty has agreed to pay interest as the economic benefit from the advances. With respect to the statutory non-compliance on TDS and professional tax, management attributed the shortfall to a shortage of funds resulting from losses incurred in the LLC T20 Cricket League. Auditors offered no further comments on management's responses. The disclosure was signed on behalf of the company by Shahnawaz Sayed, Chief Financial Officer, and by Ghanshyam Sharma (Membership No. 621739), Engagement Partner of A S G R & Co.