RLF Reports Q1 FY2026 Loss, Reappoints Auditors Amid Financial Concerns
RLF Limited, a textile embroidery and sports academy company, reported a net loss of Rs 0.89 lakhs for Q1 FY2026, down from a profit of Rs 4.02 lakhs in Q1 FY2025. Revenue from operations fell to Rs 12.40 lakhs from Rs 24.77 lakhs year-over-year. Total revenue decreased to Rs 20.67 lakhs from Rs 35.05 lakhs. The company reappointed secretarial and internal auditors. Auditors highlighted concerns including outstanding foreign currency receivables, unbooked interest income and expense, and defaulted statutory liabilities. Management maintains a positive outlook, citing ongoing initiatives to improve financial position.
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RLF Limited , a company operating in textile embroidery and sports academy segments, has reported a net loss of Rs 0.89 lakhs for the quarter ended June 30, 2025, according to its latest financial results. This marks a significant downturn from the profit of Rs 4.02 lakhs recorded in the same quarter of the previous year.
Financial Performance
The company's financial performance for Q1 FY2026 showed a notable decline:
- Revenue from operations fell to Rs 12.40 lakhs, down from Rs 24.77 lakhs year-over-year.
- Total revenue decreased to Rs 20.67 lakhs from Rs 35.05 lakhs in the corresponding quarter.
- Total expenses stood at Rs 21.56 lakhs, compared to Rs 31.03 lakhs in Q1 FY2025.
Key Financial Metrics
| Particulars (in Rs. lakhs) | Q1 FY2026 | Q1 FY2025 |
|---|---|---|
| Revenue from Operations | 12.40 | 24.77 |
| Total Revenue | 20.67 | 35.05 |
| Total Expenses | 21.56 | 31.03 |
| Net Profit/(Loss) | (0.89) | 4.02 |
Auditor Reappointments
In a board meeting held on August 13, 2025, RLF made the following reappointments:
- M/s. Sumit Bajaj & Associates, a Peer Reviewed Company Secretary Firm (FRN: S2019DE677200), as the Secretarial Auditors for FY 2025-2026.
- M/s. Pankaj Sachdeva & Co., Chartered Accountants (FRN: 039532N), as the Internal Auditors for FY 2025-2026.
Auditor's Observations
The independent auditor's review report highlighted several concerns:
- Foreign Currency Receivables: USD 31,610.47 is outstanding beyond the permissible time under FEMA regulations.
- Unbooked Interest Income: Rs 0.94 lakhs of interest income on loans to group companies has not been recorded.
- Unrecorded Interest Expense: Rs 1.49 lakhs of interest expense on borrowings has not been booked.
- Statutory Liabilities Default: The company has defaulted on Rs 0.85 lakhs in provident fund and labor welfare fund payments, outstanding for over four years.
Management's Stance
Despite the reported loss, the company's management maintains a positive outlook:
- The net worth of the company remains positive.
- Management is pursuing various initiatives, including asset monetization and recovery of long-outstanding dues, to meet financial obligations.
- The company is in discussions with statutory authorities to settle outstanding liabilities, including fines and penalties.
RLF operates primarily in the textile embroidery sector and has recently ventured into the sports academy segment. The company's ability to address the auditor's concerns and improve its financial performance will be crucial for its future prospects.
Historical Stock Returns for RLF
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.00% | -5.33% | +8.35% | +6.31% | -17.95% | +288.66% |
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