News Earnings Prabhat Technologies Reports Significant Loss in Q1FY26 Results Amid Ongoing Insolvency ProcessPrabhat Technologies Reports Significant Loss in Q1FY26 Results Amid Ongoing Insolvency Process
Prabhat Technologies (India) Limited reported a consolidated net loss of ₹1,174.94 lakhs for Q1FY26 ended June 30, 2025, compared to a profit of ₹29.63 lakhs in Q1FY25. Revenue from operations declined to ₹0.02 lakhs from ₹37.50 lakhs year-over-year. The company continues operating under Corporate Insolvency Resolution Process with Resolution Professional managing affairs since October 2019. Exceptional items of ₹1,564.13 lakhs significantly impacted the quarter's performance.
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Prabhat Technologies (India) Limited has released its unaudited financial results for the quarter ended June 30, 2025, revealing substantial losses amid its ongoing Corporate Insolvency Resolution Process (CIRP). The company, which operates under the supervision of a Resolution Professional due to insolvency proceedings initiated in October 2019, reported significant deterioration in its financial performance compared to the previous year.
Financial Performance Overview
The company's consolidated financial results show a dramatic shift from profitability to substantial losses. The consolidated net loss reached ₹1,174.94 lakhs for Q1FY26, a stark contrast to the net profit of ₹29.63 lakhs recorded in Q1FY25. On a standalone basis, the company reported a net loss of ₹1,172.19 lakhs compared to a loss of ₹5.83 lakhs in the corresponding quarter of the previous year.
| Financial Metric | Q1FY26 Consolidated | Q1FY25 Consolidated | Q1FY26 Standalone | Q1FY25 Standalone |
|---|---|---|---|---|
| Revenue from Operations (₹ lakhs) | 0.02 | 37.50 | 0.02 | 0.21 |
| Other Income (₹ lakhs) | 37.59 | 23.76 | 37.59 | 23.76 |
| Total Revenue (₹ lakhs) | 37.61 | 61.26 | 37.61 | 23.97 |
| Net Profit/(Loss) (₹ lakhs) | (1,174.94) | 29.63 | (1,172.19) | (5.83) |
| Basic EPS | (10.97) | 0.28 | (10.95) | (0.05) |
Revenue and Operational Challenges
The company experienced a severe decline in operational revenue, with revenue from operations dropping to just ₹0.02 lakhs in Q1FY26 from ₹37.50 lakhs in Q1FY25 on a consolidated basis. This represents a near-complete cessation of operational activities. Other income provided some support, increasing to ₹37.59 lakhs from ₹23.76 lakhs year-over-year, helping to maintain total revenue at ₹37.61 lakhs despite the operational challenges.
Exceptional Items and Tax Impact
A significant factor contributing to the massive loss was exceptional items amounting to ₹1,564.13 lakhs in Q1FY26, compared to nil in the previous year. The company also recorded a deferred tax expense of ₹403.85 lakhs, further impacting the bottom line. These exceptional items appear to be related to the ongoing insolvency resolution process and associated financial restructuring.
Corporate Insolvency Resolution Process Status
Prabhat Technologies continues to operate under CIRP, with Mr. Rajendra Karanmal Bhuta serving as the Resolution Professional. The insolvency proceedings were initiated following a petition filed by Paramount Consultant & Corporate Advisors Private Limited in October 2019. The Committee of Creditors had approved a resolution plan with 98.15% votes in October 2020, but the process has faced complications.
The National Company Law Tribunal (NCLT) had initially ordered liquidation in January 2024, but the National Company Law Appellate Tribunal (NCLAT) stayed the liquidation proceedings and remanded the matter back to NCLT for fresh consideration in May 2025. The matter remains pending with the NCLT.
Claims and Liabilities Structure
Under the approved resolution plan, the company has structured its liabilities as follows:
| Creditor Category | Total Claim Amount (₹) | Approved Resolution Plan Amount (₹) | Amount Written Back (₹) |
|---|---|---|---|
| Secured Financial Creditors | 1,23,48,88,160 | 40,00,00,000 | 83,48,88,160 |
| Unsecured Financial Creditors | 21,16,62,981 | 6,34,98,894 | 14,81,64,087 |
| Operational Creditors | 61,80,00,000 | 16,06,80,000 | 45,73,20,000 |
| Statutory Dues | 1,89,43,25,878 | 41,67,517 | 1,89,01,58,361 |
| Total | 3,96,79,82,399 | 63,05,28,137 | 3,33,74,54,262 |
The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by Harish Arora & Associates, Chartered Accountants. The auditors issued a qualified conclusion regarding the recognition of non-sustainable debt pursuant to CIRP, noting that such transactions require NCLT approval. The results were approved by the Resolution Professional on February 13, 2026, and subsequently filed with the stock exchanges.
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