Fraser & Company Limited announced its unaudited financial results for the quarter ended December 31, 2025, revealing mixed performance with increased revenue but continued losses. The century-old company, incorporated in 1917, reported a net loss of Rs 1.51 million for Q3 FY26 compared to a loss of Rs 0.61 million in the same quarter of the previous year.

Financial Performance Overview

The company's financial performance showed significant improvement in revenue generation despite continued losses. Total income surged to Rs 10.12 million in Q3 FY26 from nearly zero in the corresponding quarter of FY25.

Revenue and Expense Analysis

The company's net sales income from operations reached Rs 9.99 million in Q3 FY26, marking a substantial increase from zero revenue in the corresponding quarter of FY25. Other income contributed Rs 0.13 million to the total income of Rs 10.12 million. However, total expenses rose to Rs 11.63 million, primarily driven by purchase of stock-in-trade worth Rs 9.26 million.

Employee benefit expenses increased to Rs 0.75 million from Rs 0.18 million in Q3 FY25, while other expenses rose to Rs 1.56 million from Rs 0.35 million in the same period last year. Finance costs remained stable at Rs 0.02 million, and depreciation expenses decreased slightly to Rs 0.04 million.

Board Decisions and Corporate Actions

The board of directors, meeting on February 13, 2026, approved several key decisions beyond the financial results. The board sanctioned an increase in remuneration for Director Vijay Ramesh Solanki to Rs 70,000 per month, effective from February 1, 2026.

The board justified the remuneration increase citing Solanki's increased responsibilities and valuable contribution to the company's operations and growth.

Operational Challenges and Recovery Efforts

The company continues to face significant operational challenges, including outstanding trade receivables and payables. The auditor's report highlighted that the company had trade receivables of Rs 90.52 million outstanding for more than 12 months. During the period, management successfully settled major outstanding receivables of three parties amounting to Rs 82.62 million through NCLT proceedings.

As per the settlement agreement dated September 18, 2025, the company received Rs 40.00 million via demand draft and will receive four residential agreements valued at approximately Rs 40 million. The agreements for residential flats were registered on February 3, 2026, subsequent to the review period.

Going Concern and Future Outlook

Despite accumulated losses and negative net current assets, the financial statements have been prepared on a going concern basis. Management remains optimistic about the company's revival, citing residential project exits and debt reduction initiatives. The company operates in a single segment focused on supply of construction and real estate related materials.

The paid-up equity share capital remained stable at Rs 81.20 million with a face value of Rs 10 per share. The company's shares are listed on Bombay Stock Exchange (scrip code: 539032) and CSE Limited (scrip code: 016052), though trading remains suspended on the Calcutta Stock Exchange.

Fraser & Company Limited, a company with roots dating back to 1917, has released its unaudited financial results for the quarter ended September 30, 2025, revealing ongoing financial challenges and strategic moves to strengthen its board.

Financial Performance

The company reported a net loss of Rs. 1.00 million for the quarter, with total income of Rs. 0.04 million. This performance reflects the company's continued struggle with profitability and revenue generation.

The financial results indicate a significant decline in sales compared to the same period last year, with no sales recorded in the current quarter. The company's total income for the quarter stood at Rs. 0.04 million, primarily from other income sources.

Appointment of New Director

In a move to strengthen its corporate governance, Fraser & Company has appointed Ms. Rekha Naraniwal Rani as an Additional Director (Non-Executive & Independent) on the Board of Directors. The appointment, effective from November 14, 2025, is subject to shareholder approval at the next Annual General Meeting.

Ms. Naraniwal Rani, registered with the Independent Directors Databank, brings requisite qualifications and skills to her new role. Her appointment aligns with the company's efforts to enhance its leadership team during challenging times.

Going Concern Issues

The company faces significant going concern uncertainties due to accumulated losses and a negative net current asset position. Management remains optimistic about potential revival, citing plans for residential projects and debt reduction. However, the company's ability to continue as a going concern remains a critical concern for stakeholders.

Trading Suspension and Legal Challenges

Fraser & Company continues to face operational hurdles, including:

• Suspension from trading on the Calcutta Stock Exchange Limited (CSE)
• Ongoing litigation, with three creditors filing recovery suits against the company
• Challenges in providing balance confirmations for significant trade receivables and payables

Despite these challenges, the company has made progress in resolving some financial disputes. A settlement was reached for receivables of Rs. 82.62 million, with the company receiving Rs. 40.00 million in demand drafts and four residential flats in lieu of the remaining amount.

As Fraser & Company navigates through these financial and operational challenges, the appointment of Ms. Naraniwal Rani as an independent director may bring fresh perspectives to the company's revival efforts. Stakeholders will be closely watching the company's future moves and potential turnaround strategies in the coming months.