Gian Life Care Limited announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, following a board meeting held on February 14, 2026. The healthcare and diagnostics company presented mixed performance indicators alongside significant auditor concerns regarding financial transparency.

Standalone Financial Performance

The company's standalone operations showed positive momentum in Q3FY26 compared to the previous quarter. Revenue from operations reached ₹112.28 lakhs, representing a substantial increase from ₹66.00 lakhs in Q2FY26, though it remained below the ₹158.86 lakhs recorded in Q3FY24.

The company successfully returned to profitability with a net profit of ₹12.03 lakhs in Q3FY26, recovering from a loss of ₹46.58 lakhs in the previous quarter. Basic earnings per share improved to ₹0.12 from negative ₹0.45 in Q2FY26.

Consolidated Results

Consolidated financial results, which include subsidiaries Gian Satguru Pathology LLP and Gian Path Lab (India) Pvt. Ltd., showed similar trends with revenue from operations of ₹112.28 lakhs and net profit of ₹10.13 lakhs for Q3FY26.

Significant Auditor Concerns

MSNT & Associates LLP, the company's auditors, raised critical concerns in their review report regarding the company's financial position. The auditors highlighted that while Gian Life Care reported a cash balance of approximately ₹743.78 lakhs as of the reporting date, significant outstanding obligations remain unpaid:

The auditors expressed inability to conclude on the existence and appropriateness of the cash balance due to insufficient audit evidence and the inability to conduct physical verification. This raises questions about the company's liquidity management and financial transparency.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported standalone revenue from operations of ₹264.98 lakhs compared to ₹551.76 lakhs in the corresponding period of the previous year. The nine-month net loss stood at ₹29.10 lakhs versus a profit of ₹63.69 lakhs in the previous year.

Corporate Governance

The board meeting was conducted on February 14, 2026, from 4:30 PM to 5:30 PM, where directors approved the quarterly results. The company maintains its paid-up equity share capital at 10,341,524 shares with a face value of ₹10 per share. Managing Director Arun Kumar Gupta (DIN: 01331593) signed off on the financial statements, emphasizing the company's commitment to regulatory compliance despite the auditor concerns.

Gian Life Care Limited reported challenging financial results for the quarter ended September 30, 2025, posting a net loss of ₹46.20 lakhs compared to a profit of ₹14.19 lakhs in the same quarter last year. The healthcare diagnostics company faced significant revenue decline and operational challenges during the reporting period.

Financial Performance Overview

The company's financial performance showed marked deterioration across key metrics during Q2FY26:

Revenue from operations declined dramatically by 66.09% to ₹66.00 lakhs from ₹194.67 lakhs in the corresponding quarter last year. Other income also decreased to ₹9.32 lakhs from ₹16.15 lakhs, bringing total revenue down to ₹75.32 lakhs.

Expense Analysis and Operational Metrics

Despite the revenue decline, the company's expense structure remained substantial. Cost of materials consumed decreased to ₹30.39 lakhs from ₹49.33 lakhs year-on-year. Employee benefits expenses reduced to ₹10.42 lakhs from ₹14.85 lakhs, while other expenses declined to ₹63.88 lakhs from ₹108.19 lakhs in Q2FY25.

The company's earnings per share turned negative at ₹(0.45) compared to positive ₹0.14 in the same quarter last year. The paid-up equity share capital remained unchanged at ₹10,341,524 with a face value of ₹10 per share.

Half-Year Performance and Cash Flow

For the six-month period ended September 30, 2025, the company reported a net loss of ₹40.75 lakhs against revenue of ₹152.70 lakhs. The cash flow statement showed net cash generated from operating activities of ₹60.72 lakhs, while investing activities generated ₹24.83 lakhs. Financing activities resulted in a net cash outflow of ₹35.45 lakhs.

Auditor Concerns and Balance Sheet Position

MSNT & Associates LLP, the company's auditors, raised significant concerns in their limited review report. The auditors highlighted that the company maintains a cash balance of approximately ₹743.78 lakhs while statutory dues of ₹426.66 lakhs and bank loans classified as Non-Performing Assets (NPA) worth ₹359.78 lakhs remain unpaid.

The auditors stated they were "unable to conclude on the existence and appropriateness of the cash balance" as physical verification could not be carried out and alternative audit procedures were unavailable. This raises questions about the company's cash management and financial transparency.

Consolidated Results

On a consolidated basis, which includes subsidiaries Gian Satguru Pathology LLP and Gian Path Lab [India] Pvt. Ltd., the company reported a net loss of ₹51.21 lakhs for Q2FY26 compared to a profit of ₹11.73 lakhs in Q2FY25. Consolidated revenue from operations remained similar at ₹66.01 lakhs, while total expenses increased to ₹130.05 lakhs.