VXL Instruments Limited reported a widened net loss of ₹7.07 lakh for the first quarter of FY26 (Q1FY26), compared to a ₹6.51 lakh loss in the corresponding period of the previous year. The Mumbai-based instrument manufacturer, which is undergoing the Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations, with total revenue comprising solely of ₹1.57 lakh in other income. The results were approved by the Resolution Professional Committee on August 07, 2026, pursuant to Regulation 30 read with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The financial deterioration is underscored by total expenses rising to ₹8.64 lakh from ₹20.85 lakh in Q1FY25, though the composition shifted significantly. While revenue from operations was nil, other expenses accounted for ₹8.64 lakh, up from ₹12.65 lakh in the prior year quarter but representing the entirety of operational outflows given the lack of sales activity. Finance costs remained negligible at ₹0.00 lakh. The company’s paid-up equity share capital stands at ₹1,332.48 lakh.

Key Financial Metrics

Auditor Disclaimer and Going Concern Risks

Statutory auditors YCRJ & Associates issued a disclaimer of conclusion on the unaudited financial results, citing insufficient appropriate evidence to form a basis for their opinion. The primary concern was the inability to obtain direct balance confirmations or account statements for one bank account included under "Cash and Cash Equivalents" with a carrying value of ₹95,733 as of June 30, 2026. Consequently, the auditors could not verify the existence, accuracy, or completeness of this balance.

Furthermore, the audit report highlights material uncertainties regarding the company’s ability to continue as a going concern. The auditors noted that the company has incurred losses during current and previous quarters and faces challenges in meeting obligations, including servicing current liabilities, employee dues, and statutory dues. A majority of employees, including Key Managerial Personnel, have left the company. Although the resolution plan has been approved by the Committee of Creditors, it remains pending approval before the National Company Law Tribunal (NCLT). The detailed resolution plan was not made available to the auditors, preventing them from assessing its financial impact.

Operational Context Under CIRP

VXL Instruments Limited entered the CIRP following an order by the Hon’ble NCLT, Mumbai Bench, passed on November 26, 2024. Since this date, the affairs of the company have been under the supervision of Resolution Professional Jayantilal Jain. The suspended Board of Directors signed the financial statements only with the express consent of the RP. The figures for the quarter ended March 31, 2026, represent balancing figures between audited full-year figures and reviewed year-to-date figures up to the third quarter.

The continued absence of operational revenue and the exodus of key personnel signal a complete standstill in business activities while the insolvency process concludes. Investors are advised to monitor the NCLT’s approval of the resolution plan, which will determine the future capital structure and operational viability of the entity.

VXL Instruments Limited reported a net loss of ₹48.29 lakh for the financial year ended March 31, 2026, as its audited financial results were approved by the Resolution Professional on May 29, 2026. The company, currently undergoing the Corporate Insolvency Resolution Process (CIRP), recorded zero revenue from operations for the year, compared to ₹66.37 lakh in the previous year. The total comprehensive loss for the period stood at ₹48.29 lakh.

The meeting was convened by the Resolution Professional, Jayanti Lal Jain, in lieu of the suspended Board of Directors, pursuant to the Insolvency and Bankruptcy Code, 2016. The powers of the Board and various committees have been assumed by the Resolution Professional following the order by the Hon’ble National Company Law Tribunal, Mumbai Bench, on November 26, 2024. The intimation regarding the meeting was submitted to the stock exchanges under Regulation 30 and 33 of the SEBI (LODR) Regulations, 2015.

Financial Performance

The company’s financial results for the year ended March 31, 2026, reflect the ongoing operational challenges. Total revenue decreased to ₹23.79 lakh from ₹82.04 lakh in the previous year. Other income contributed ₹16.24 lakh to the total revenue. Total expenses for the year were ₹50.34 lakh, significantly lower than the ₹179.86 lakh reported in the prior year, primarily due to the absence of material costs and employee benefit expenses.

Auditor’s Report and Going Concern

YCRJ & Associates, the statutory auditors, issued a disclaimer of opinion on the financial results. The auditors stated they could not obtain sufficient appropriate audit evidence, specifically regarding the existence and accuracy of a bank balance of ₹95,733 included in cash and cash equivalents, as account statements and confirmations were not provided. Consequently, the auditors were unable to quantify the potential impact of any misstatements.

Furthermore, the auditors highlighted a material uncertainty regarding the company's ability to continue as a going concern. The company has incurred losses in the current and previous years and faces difficulties in meeting liabilities, with a majority of employees, including Key Managerial Personnel, having left. The financial statements have been prepared on a going concern basis based on the expectation of a successful resolution process, which has been approved by the Committee of Creditors and is pending approval before the National Company Law Tribunal (NCLT).