Sheshadri Industries Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing a challenging performance with declining revenues and profitability compared to the previous year. The Board of Directors approved these results during their meeting held on January 28, 2026.

Quarterly Financial Performance

The company's operational performance showed a significant decline in the third quarter of FY26. Revenue from operations decreased substantially compared to the corresponding quarter of the previous fiscal year.

While revenue from operations declined significantly, the company witnessed a substantial increase in other income, which helped cushion the overall impact on total income.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, reflected similar trends with revenue pressures continuing throughout the period. However, the company faced additional challenges in the form of exceptional items.

Exceptional Items Impact

The company recorded exceptional items totaling ₹225.01 lakhs during the nine-month period, which significantly impacted the bottom line. These exceptional items comprised:

• Export Duty Credit write-off of ₹214.11 lakhs as the amount is no longer realizable
• Goods and Service Tax demands of ₹10.90 lakhs that were omitted in earlier years

Financial Position and Going Concern

Despite the company having accumulated losses of ₹1,803.47 lakhs as of December 31, 2025, and current liabilities exceeding current assets, the management continues to prepare financial statements on a going concern basis. This approach is justified by considering the market value of the company's immovable properties.

The company also has outstanding statutory dues with unpaid interest on Tax Deducted at Source amounting to ₹29.69 lakhs, including arrears of ₹21.85 lakhs up to March 31, 2025, for which no provision has been made in the books of accounts.

Auditor's Qualified Review

The statutory auditors, K.S. Rao & Co., issued a qualified conclusion on the financial results, primarily due to the non-provision of interest on outstanding unpaid statutory dues. The auditors noted that except for this matter, the financial results comply with applicable accounting standards and regulatory requirements.

Sheshadri Industries Limited has released its unaudited financial results for the quarter ended September 30, 2025, revealing ongoing financial challenges despite continued operations.

Financial Performance

The company reported a profit of ₹21.14 crore for the quarter, a significant improvement from the previous year. However, this figure comes with several caveats that paint a more complex financial picture.

Accumulated Losses and Exceptional Items

Sheshadri Industries disclosed accumulated losses of ₹1,903.96 lakh as of September 30, 2025. Additionally, the company reported exceptional items totaling ₹225.01 lakh, which include:

• Export Duty Credit write-off: ₹214.11 lakh
• Goods and Service Tax demands: ₹10.90 lakh (omitted from recognition in earlier years)

Going Concern Status

Despite the current liabilities exceeding current assets, the company continues to operate on a going concern basis. Management cites the market value of its immovable properties as support for this decision.

Financial Position

The company's financial position as of September 30, 2025, is summarized in the following table:

Auditor's Review

The company's statutory auditors have conducted a limited review of the financial results. They have issued a qualified conclusion, noting that no provision has been made for interest payable on outstanding unpaid statutory dues of Tax Deducted at Source, amounting to ₹28.11 lakh.

Management's Stance

The Board of Directors, led by Managing Director Jeetender Kumar Agarwal, approved these unaudited financial results at a meeting held on November 14, 2025. The company maintains that its financial statements are prepared in accordance with Indian Accounting Standards and other recognized accounting practices.

Conclusion

While Sheshadri Industries faces significant financial challenges, including accumulated losses and exceptional items, the company's ability to secure a profit this quarter may provide some optimism. However, the qualified conclusion from auditors and the reliance on immovable property valuations for going concern status suggest that the company's financial health remains precarious.

Stakeholders will likely monitor how Sheshadri Industries addresses its financial obligations and manages its assets in the coming quarters to improve its overall financial position.