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.

Sheshadri Industries Limited , a company operating in the textile products segment, has reported a significant turnaround in its financial performance for the quarter ended September 30, 2021. Despite facing severe financial challenges, the company managed to post a profit, marking a notable improvement from the previous year.

Quarterly Performance Highlights

Sheshadri Industries reported a profit of Rs. 415.16 lakhs for the quarter, a substantial improvement compared to a loss of Rs. 160.31 lakhs in the same quarter of the previous year. The company's revenue from operations saw a dramatic increase, rising to Rs. 3,380.39 lakhs from a mere Rs. 3.26 lakhs in the prior year quarter.

All figures in Rs. lakhs

Financial Challenges

Despite the positive quarterly results, Sheshadri Industries continues to face significant financial hurdles:

• Accumulated losses of Rs. 4,148.55 lakhs
• Negative net worth of Rs. 3,312.75 lakhs
• Current liabilities exceeding current assets by Rs. 4,333.37 lakhs

These figures underscore the company's precarious financial position and raise concerns about its long-term sustainability.

Auditor's Concerns

The company's auditors have issued a qualified review report, highlighting several critical issues:

1. Concerns about Sheshadri Industries' ability to continue as a going concern
2. Issues with interest provisions on bank loans
3. Problems related to statutory dues

These points indicate that despite the improved quarterly performance, the company still faces substantial challenges in maintaining its financial stability.

Management's Response

In response to the financial challenges, Sheshadri Industries has received comfort letters from its promoters, assuring continued financial support. This commitment from the promoters could be crucial for the company's efforts to navigate its current financial difficulties and work towards a more stable financial position.

The company's ability to generate a profit and significantly increase its revenue in the latest quarter, despite the ongoing challenges, may be seen as a positive sign. However, the substantial accumulated losses and negative net worth continue to pose significant risks to its long-term viability.

As Sheshadri Industries moves forward, addressing the concerns raised by the auditors and improving its overall financial health will be critical for regaining stakeholder confidence and ensuring the company's sustainability in the competitive textile products market.