Gian Life Care Reports Q2FY26 Loss of ₹46.20 Lakhs Amid Revenue Decline
Gian Life Care Limited reported a net loss of ₹46.20 lakhs for Q2FY26 versus profit of ₹14.19 lakhs in Q2FY25, with revenue declining 66.09% to ₹66.00 lakhs. The company faces operational challenges with total expenses at ₹125.04 lakhs and loss before tax of ₹49.72 lakhs. Auditors raised concerns about cash balance verification, noting ₹743.78 lakhs in cash while ₹426.66 lakhs in statutory dues and ₹359.78 lakhs in NPA bank loans remain unpaid.
*this image is generated using AI for illustrative purposes only.
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:
| Metric | Q2FY26 | Q2FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹66.00 lakhs | ₹194.67 lakhs | -66.09% |
| Total Revenue | ₹75.32 lakhs | ₹210.82 lakhs | -64.27% |
| Total Expenses | ₹125.04 lakhs | ₹194.06 lakhs | -35.56% |
| Loss/Profit Before Tax | ₹(49.72) lakhs | ₹16.76 lakhs | -396.66% |
| Net Loss/Profit | ₹(46.20) lakhs | ₹14.19 lakhs | -425.58% |
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.
Historical Stock Returns for Gian Life Care
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.17% | -5.05% | -3.46% | -41.00% | -35.38% | +9.90% |
17
