Elango Industries Limited has reported its financial results for the second quarter of the fiscal year 2026, showing a reduction in net loss despite challenges in revenue growth. The company's performance indicates some improvement in its financial position, although concerns remain regarding a long-standing electricity subsidy receivable.

Financial Highlights

For the quarter ended September 30, 2025, Elango Industries reported the following key figures:

All figures in Rs. lakhs

The company's revenue from operations saw a significant year-on-year increase, rising from Rs 0.18 lakhs in Q2 FY25 to Rs 2.52 lakhs in Q2 FY26. This substantial growth in revenue, however, should be viewed in the context of the low base in the previous year.

Despite the revenue growth, Elango Industries continued to report a net loss, albeit significantly reduced from the same quarter last year. The net loss for Q2 FY26 stood at Rs 0.94 lakhs, compared to Rs 3.15 lakhs in Q2 FY25, representing a 70.16% reduction in losses.

Half-Year Performance

For the half-year period ended September 30, 2025:

All figures in Rs. lakhs

The company's half-yearly results also showed improvement, with revenue from operations increasing by 426.89% and net loss decreasing by 54.24% compared to the same period in the previous fiscal year.

Auditor's Qualification

The company's auditors, P. Pattabiramen & Co., have issued a qualified conclusion in their review report. The qualification pertains to an electricity subsidy receivable of Rs 1.10 crores, which has been pending for a long period. The auditors stated that due to inadequate information about its present status, they are unable to ascertain the recoverability of this balance.

It's worth noting that this qualification has been continuing since March 2022, indicating an ongoing issue that the company has yet to resolve satisfactorily.

Management's Response

In response to the auditor's qualification, the management of Elango Industries stated that they are in the process of recovering the electricity subsidy amount and consider it recoverable. The company has committed to taking appropriate steps to recover the outstanding amount of Rs 1,09,96,636/-.

Other Key Points

1. The company confirmed that there were no deviations in the use of IPO proceeds.
2. All promoter shareholdings are held in dematerialized form, in compliance with SEBI regulations.
3. The company's Board of Directors approved these unaudited financial results at their meeting held on November 11, 2025.

While Elango Industries has shown some improvement in its financial performance, the persistent issue of the electricity subsidy receivable and continued losses highlight ongoing challenges for the company. Investors and stakeholders may want to monitor how the company addresses these issues in the coming quarters.

Elango Industries Limited has announced its unaudited financial results for the first quarter ended June 30, 2025. The company reported a net loss of Rs. 4.89 lakhs for the quarter, as approved by its Board of Directors on August 13, 2025.

Key Financial Highlights

• Revenue from operations stood at Rs. 21.36 lakhs for Q1 FY2026
• Net loss reported at Rs. 4.89 lakhs
• Earnings per share (EPS) for the quarter was negative at Rs. (0.13)

Financial Position

• Equity share capital remained stable at Rs. 382.16 lakhs
• Other equity showed a negative balance of Rs. 9.83 lakhs, indicating accumulated losses

The company's performance reflects challenging market conditions, with revenue generation falling short of covering operational costs. The negative other equity balance suggests that Elango Industries has been facing financial difficulties over time.

Comparative Analysis

The quarter-on-quarter comparison shows a significant improvement in revenue from Rs. 1.09 lakhs in Q4 FY2025 to Rs. 21.36 lakhs in Q1 FY2026. Despite this increase, the company continued to report losses, albeit at a reduced level compared to the previous quarter and the same quarter last year.

The Board of Directors reviewed and approved these results at their meeting held on August 13, 2025. As per regulatory requirements, the financial results have been subjected to a limited review by the statutory auditors of the company.

Elango Industries Limited has published these results in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full detailed format of the financial results is available on the BSE website and the company's official website.

Investors and stakeholders are advised to review the complete financial statements and notes for a comprehensive understanding of the company's financial position and performance.