Toyam Sports Limited reported a consolidated net loss of ₹1,866.36 lakh for the financial year ended March 31, 2026, narrowing from a loss of ₹4,795.50 lakh in the prior year. Revenue from operations for the year stood at ₹91.74 lakh, down from ₹694.37 lakh in FY25. The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during a meeting held on July 17, 2026.

Statutory auditors ASGR & Co. issued a qualified opinion on the standalone and consolidated annual financial results. The auditors noted that the company did not provide for impairment of financial assets using the expected credit loss approach as required by Ind AS 109. Given that financing activities constitute over 50% of the company's funds, the auditors stated they could not assess the potential future impact of unrecognized impairment.

The audit report further highlighted that the company failed to carry out an impairment analysis of loans and advances to various companies, despite indications of impairment under Ind AS 36. Additionally, the management did not provide a detailed assessment regarding the applicability of Section 45-IA of the RBI Act, 1934. Consequently, auditors could not determine if the company requires registration as a non-banking financial company and the consequential impact on the financial results.

During the quarter, the company received notices from the Securities and Exchange Board of India (SEBI). The auditors noted that pending the completion of investigations, the impact on the financial results is not ascertainable. The report also mentioned that the Enforcement Directorate has frozen some shares, and management did not disclose information on other ongoing proceedings. The company also did not deliberate on the economic benefits realizable from merchandising agreements.

The company reported a standalone net loss of ₹29.78 lakh for FY26, compared to a loss of ₹4,210.58 lakh in the previous year. Total equity stood at ₹28,840.07 lakh as of March 31, 2026, while total assets were ₹29,552.19 lakh. Cash and cash equivalents decreased to ₹6.72 lakh from ₹18.30 lakh in the prior year.

Financial Performance

The board adopted the related party transaction statement as of March 31, 2026, under Regulation 23(9) of SEBI LODR Regulations. Key related party transactions included the return of advances amounting to ₹21.50 lakh to Managing Director Mohamed Ali Rajabali Budhwani.

Toyam Sports Limited's board of directors approved the unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, at a meeting held on April 23, 2026, at the company's registered office in Mumbai. The board authorized Mr. Shahnawaz Sayed to sign and submit the financial results to the stock exchanges. Additionally, the board approved the appointment of Nidhi Bajaj & Associates as Practicing Company Secretary effective April 23, 2026, subject to shareholders' approval at the upcoming shareholders' meeting.

The standalone financial results for the quarter ended December 31, 2025, reported total income of Rs. 0 lakhs compared to Rs. 102.67 lakhs in the corresponding quarter of the previous year. Total expenses stood at Rs. 2.28 lakhs, resulting in a net loss of Rs. 2.28 lakhs for the quarter. For the nine months ended December 31, 2025, the company reported a net loss of Rs. 27.98 lakhs. The paid-up equity share capital remained constant at Rs. 5,778.15 lakhs with a face value of Rs. 1 each.

Standalone Financial Performance

The consolidated financial results presented a more challenging picture. Total income for the quarter ended December 31, 2025, was Rs. 0 lakhs, while total expenses reached Rs. 617.92 lakhs, resulting in a net loss of Rs. 617.92 lakhs. For the nine months period, the net loss widened to Rs. 1,523.14 lakhs. The consolidated results include the performance of subsidiaries Kumite 1 League Private Limited and Pacific Star Sports Services L.L.C.

Consolidated Financial Performance

Audit Qualifications

The auditors, A S G R & Co., issued a qualified opinion on both standalone and consolidated financial results. The key qualifications include:

• The company has not provided for impairment of financial assets using the Expected Credit Loss (ECL) approach as required by Ind AS 109, with financial activities constituting over 50% of funds
• No impairment analysis has been carried out on loans and advances given to various companies despite indications of impairment, as required by Ind AS 36
• Financial assets exceed 50% of total assets, requiring compliance with Section 45-IA of the Companies Act and RBI regulations, but compliance information has not been provided
• The company has received notices from SEBI, and the impact of ongoing investigations on financial results remains unascertainable
• Economic benefits realizable from Merchandising Agreements have not been deliberated upon
• The company has not complied with statutory liabilities including professional tax and TDS

The auditors noted that these qualifications are repetitive in nature. Management stated that they do not foresee any potential credit loss from financial instruments and that loans identified as non-recoverable have already been written off. The company is cooperating with SEBI investigations and confirmed no other proceedings related to share freezing are known apart from the SEBI matter. Management attributed inability to meet statutory liabilities to fund shortages caused by losses in the LLC T20 Cricket League.