Alliance Integrated Metaliks Limited has announced its unaudited financial results for the third quarter of fiscal year 2026, revealing continued operational challenges despite revenue growth. The company's board of directors approved the results in a meeting held on February 12, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with revenue growth but widening losses:

For the nine-month period ended December 31, 2025, the company reported a net loss of ₹6,800.17 lakhs compared to ₹5,366.78 lakhs in the corresponding period of the previous year. Revenue from operations for the nine-month period stood at ₹5,833.90 lakhs against ₹6,188.69 lakhs in the previous year.

Expense Analysis

The company's total expenses for Q3FY26 amounted to ₹4,540.02 lakhs, significantly higher than the total income. Key expense components included:

Finance costs remained the largest expense component, increasing by 11.59% year-on-year, reflecting the company's debt burden.

Going Concern and Financial Position

The company faces significant financial challenges that raise material uncertainty about its ability to continue as a going concern. As of December 31, 2025, the company's net worth stood at a negative ₹33,159.36 lakhs due to accumulated losses. The current liabilities far exceed total current assets, primarily due to the classification of term and working capital loans as current liabilities.

Outstanding loans totaling ₹56,488.11 lakhs, including accrued interest, have been classified as non-performing assets by lenders in previous financial years. The company is actively engaged in discussions with lenders for debt resolution and has submitted one-time settlement proposals, depositing upfront amounts with concerned lender banks.

Regulatory and Legal Matters

The company disclosed that certain immovable properties and promoter shares have been provisionally attached by the Deputy Director, Gurugram Zonal Office, Directorate of Enforcement, New Delhi under Prevention of Money Laundering Act, 2002. The order was confirmed by the Adjudicating Authority, but the company has filed an appeal before the Appellate Authority, which remains pending.

According to management, these proceedings do not affect business operations or ongoing activities, and no adjustments have been made to the financial results.

Auditor's Qualified Opinion

The statutory auditors, Chatterjee & Chatterjee, issued a qualified review report highlighting that trade payables, trade receivables, and other loans and advances continue to be subject to reconciliation and confirmation. Term loan accounts with banks and financial institutions also require reconciliation and confirmation.

Despite these challenges, the company maintains its financial statements on a going concern basis, citing continuity of operations, positive EBITDA, government infrastructure development initiatives, and an encouraging order book as supporting factors.

Alliance Integrated Metaliks Limited (AIML) has reported a net loss of Rs 2,375.44 lakhs for the quarter ended September 30, 2025, raising concerns about the company's ability to continue as a going concern. The company's financial results, released on November 14, 2025, reveal significant challenges in its operations and financial position.

Financial Performance

For the quarter ended September 30, 2025, AIML reported:

The company's revenue from operations showed a marginal increase, but the total expenses rose significantly, leading to a higher net loss compared to the same quarter in the previous year.

Going Concern Issues

AIML faces several challenges that cast doubt on its ability to continue as a going concern:

1. Negative Net Worth: As of September 30, 2025, the company's net worth stands at a negative Rs 30,805.13 lakhs.
2. Current Liabilities Exceed Assets: The company's current liabilities far exceed its current assets, indicating potential liquidity issues.
3. Non-Performing Assets: Outstanding loans of Rs 54,876.66 lakhs, including accrued interest, have been classified as non-performing assets (NPAs) by lenders.

Debt Resolution Efforts

The company reports that it is actively engaged in discussions with lenders to resolve its outstanding debts. As part of its One-Time Settlement (OTS) proposals, AIML has deposited upfront amounts with concerned lender banks. However, the company has classified all its borrowings from banks and financial institutions as current liabilities.

Auditor's Observations

The independent auditor's review report highlights several concerns:

1. Reconciliation Issues: Trade payables, trade receivables, and other loans and advances are subject to reconciliation and confirmation.
2. Material Uncertainty: The auditor notes that the company's financial condition indicates a material uncertainty that may cast significant doubt on its ability to continue as a going concern.

Legal Proceedings

A Provisional Attachment Order has been issued against the company by the Directorate of Enforcement, New Delhi. This order pertains to the attachment of immovable properties held in the company's name and shares held by the promoter company. AIML has filed an appeal against this order, which is currently pending before the Appellate Authority.

Despite these challenges, the company's management maintains that the ongoing legal proceedings do not affect its business operations or ongoing activities. AIML continues to prepare its financial statements on a going concern basis, citing factors such as continuity of operations, positive EBITDA, and an encouraging order book.

As Alliance Integrated Metaliks navigates through these financial and legal challenges, stakeholders will be closely monitoring the company's efforts to improve its financial position and resolve outstanding issues with lenders and regulatory authorities.