Shree Precoated Steels Limited has released its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with no revenue generation and mounting losses. The Board of Directors approved these results during their meeting held on January 29, 2026.

Financial Performance Overview

The company's financial performance for the third quarter of FY26 reflects ongoing operational difficulties with zero revenue from operations and increased losses compared to the previous quarter.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported a net loss of Rs. 46 lakhs compared to Rs. 45 lakhs in the corresponding period of the previous year, indicating a marginal deterioration in performance.

Expense Breakdown

The company's operational expenses primarily consisted of employee benefit expenses and other expenses, with no material costs, finance costs, or depreciation recorded during the quarter.

Key expense components for Q3 FY26:

• Employee benefit expenses: Rs. 14 lakhs
• Other expenses: Rs. 4 lakhs
• Total expenses: Rs. 18 lakhs

Going Concern and Auditor's Observations

The company's financial position raises significant concerns about its ability to continue operations. With a paid-up equity share capital of Rs. 414 lakhs and negative net worth, the auditors have highlighted material uncertainty regarding the going concern assumption. The independent auditor's limited review report specifically draws attention to the company's negative net worth and the resulting doubt about its ability to continue as a going concern.

Despite these challenges, the company continues to prepare its accounts on a going concern basis, citing pending litigation regarding refund of indirect taxes as a potential source of future cash flows.

Corporate Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors during their meeting on January 29, 2026. The meeting commenced at 11:30 AM and concluded at 11:45 AM, with Company Secretary Priyanka Khandelwal managing the compliance obligations.

Shree Precoated Steels Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing persistent financial challenges that continue to raise questions about the company's operational sustainability.

Q2FY26 Financial Performance

The company's financial results for Q2FY26, approved by the Board of Directors on November 6, 2025, show continued operational difficulties:

The company continues to report zero revenue from operations while incurring expenses primarily from employee benefits (₹11 lakhs) and other operational costs (₹5 lakhs) during Q2FY26.

Balance Sheet Position

As of September 30, 2025, the company's financial position remains precarious:

Going Concern Uncertainty Persists

The company's auditors have reiterated material uncertainty related to SPSL's ability to continue as a going concern. The auditor's limited review report specifically highlights that the company's negative net worth "indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern."

Despite these concerns, the management continues to prepare financial statements on a going concern basis, citing pending litigation regarding refund of indirect taxes and potential future financing arrangements.

Cash Flow Analysis

The company's cash flow statement reveals:

Regulatory Compliance

On November 11, 2025, the company resubmitted its financial results to BSE, noting that the notes to the financial results were inadvertently missed in the earlier submission dated November 6, 2025. Company Secretary Priyanka Khandelwal confirmed the resubmission under Regulations 30 and 33 of SEBI Listing Regulations.

Outlook

With continued losses, zero operational revenue, and deteriorating net worth, Shree Precoated Steels faces significant challenges in demonstrating its viability as a going concern. Stakeholders will closely monitor any strategic initiatives or capital infusion plans that could address the company's fundamental operational and financial issues in the coming quarters.