Impex ferro tech Limited has reported a net loss of ₹181.14 lakhs for the quarter ended 31st December, 2025, as the company continues to operate under Corporate Insolvency Resolution Process (CIRP). The financial results were prepared under the supervision of Resolution Professional Ashok Kumar Sarawagi, as the powers of the Board of Directors remain suspended due to the ongoing insolvency proceedings.

Financial Performance Overview

The company recorded zero revenue from operations during Q3FY26, consistent with previous quarters. Total expenses for the quarter stood at ₹181.14 lakhs, primarily driven by depreciation and amortization expenses of ₹167.02 lakhs and other expenses of ₹14.13 lakhs.

Auditor's Qualified Opinion

V.K. Tulsyan & Co. LLP issued a qualified opinion on the financial results, highlighting several significant concerns. The auditor noted the non-provision of cumulative interest expense of ₹63,020.22 lakhs on borrowings, which is not in accordance with IND AS 109 requirements. Additionally, the auditor expressed inability to comment on the carrying amount of trade receivables and advances where Expected Credit Loss (ECL) provisions of ₹313.60 lakhs and ₹393.53 lakhs respectively were made.

Corporate Insolvency Resolution Process Status

The National Company Law Tribunal (NCLT), Kolkata Bench initiated CIRP against the company on 2nd May, 2024, based on an application filed by a financial creditor. Ashok Kumar Sarawagi was appointed as Resolution Professional by the Committee of Creditors on 14th June, 2024, replacing the initial Interim Resolution Professional.

Operational Challenges

The company's manufacturing operations at Kalyaneshwari, West Bengal have been temporarily shut down since October 2022 due to power supply disconnection by Damodar Valley Corporation (DVC). The security deposit with DVC amounting to ₹950 lakhs in the form of bank guarantee has been invoked, and another deposit of ₹748 lakhs was adjusted during FY 2022-23.

Going Concern and Material Uncertainty

The auditor highlighted material uncertainty regarding the company's ability to continue as a going concern. The company has accumulated losses of ₹46,255.07 lakhs as of 31st December, 2025, which exceeds its net worth. The appropriateness of preparing financial results on a going concern basis is critically dependent upon the CIRP process and approval of a resolution plan by NCLT.

Resolution Process Update

One resolution applicant has been declared as the H1 bidder, and a resolution plan has been submitted to the Committee of Creditors. The company's future prospects to remain as a going concern are subject to the approval and implementation of this resolution plan. The financial results continue to be prepared on a going concern basis as required during the CIRP process under the Insolvency and Bankruptcy Code, 2016.

Impex Ferro Tech Limited reported continued financial distress for the quarter ended September 30, 2025, with a net loss of ₹181.41 lakhs amid ongoing Corporate Insolvency Resolution Process (CIRP) proceedings. The ferro alloys manufacturer has been operating under insolvency proceedings since May 2024, with its manufacturing operations suspended since October 2022.

Financial Performance Overview

The company's financial performance for Q2FY26 reflects the challenges of operating under insolvency proceedings without active manufacturing operations.

For the half-year ended September 30, 2025, the company reported a total comprehensive loss of ₹368.05 lakhs compared to ₹342.39 lakhs in the corresponding period of the previous year. The primary expense components included depreciation and amortization of ₹334.04 lakhs and other expenses of ₹35.18 lakhs.

Corporate Insolvency Resolution Process Status

The National Company Law Tribunal (NCLT), Kolkata Bench, initiated CIRP against the company on May 2, 2024, following an application by a financial creditor. Mr. Ashok Kumar Sarawagi currently serves as the Resolution Professional, having been appointed by the Committee of Creditors on June 14, 2024.

The Resolution Professional has published updated claims as of September 20, 2025, showing the following admitted amounts:

One Resolution Applicant has been declared as the H1 bidder, indicating progress in the resolution process.

Balance Sheet Position

As of September 30, 2025, the company's financial position remained severely stressed with negative equity of ₹31,888.87 lakhs compared to ₹31,520.83 lakhs as of March 31, 2025.

The company's accumulated losses have reached ₹46,073.93 lakhs, substantially exceeding its net worth and highlighting the severity of its financial distress.

Operational Challenges

The company's manufacturing facility at Kalyanesheri, West Bengal, has remained shut since October 2022 due to power supply disconnection by Damodar Valley Corporation (DVC). The security deposit of ₹950.00 lakhs with DVC in the form of bank guarantee has been invoked, and another deposit of ₹748.00 lakhs has been adjusted.

Additionally, the insurance coverage for fixed assets and plant & machinery expired on June 13, 2023, with renewal processes underway. The company operates in a single business segment of ferro alloys manufacturing.

Going Concern and Future Prospects

The auditors have expressed material uncertainty regarding the company's ability to continue as a going concern, noting that this depends entirely on the resolution plan to be formulated and approved by NCLT. The financial results continue to be prepared on a going concern basis as required during the CIRP process, though the company's future viability remains contingent on successful resolution proceedings.