SPEL Semiconductor Limited , a manufacturer of integrated circuits, has reported a net loss of Rs 18.05 crore for the quarter ended September 30, 2025. The company's financial results, which were approved by the Board of Directors on November 14, 2025, reveal ongoing operational challenges and efforts to address them.

Financial Performance

The company's financial performance for the quarter shows significant stress:

SPEL Semiconductor's revenue from operations decreased from Rs 193.39 lakh in Q1 FY2026 to Rs 152.91 lakh in Q2 FY2026. The total income also saw a decline from Rs 235.62 lakh to Rs 200.69 lakh over the same period.

Auditor's Concerns

The statutory auditors have raised going concern doubts due to the company's continued losses and negative cash flows. This highlights the serious financial challenges faced by SPEL Semiconductor.

Operational Restructuring and Fund Infusion

To address these challenges, SPEL Semiconductor is undertaking several measures:

1. Restructuring of operations to improve efficiency and reduce costs.
2. Proposed sale of surplus land to infuse necessary funds.
3. Availing lease rental loan enhancement to improve liquidity.

Board Decisions

In the board meeting held on November 14, 2025, the company also approved the allotment of Non-convertible, Cumulative, Redeemable Preference Shares of face value Rs. 100/- each, amounting to Rs. 6.95 crore, to Dr. A.C Muthiah. This allotment is in lieu of borrowings extended to the company, indicating efforts to restructure its debt.

Inventory Write-off

A significant portion of the exceptional items for the quarter (Rs 1,134.62 lakh) is attributed to inventory write-offs. The company noted that these finished goods were built during the pandemic period, suggesting potential obsolescence or reduced market demand for these products.

Future Outlook

While SPEL Semiconductor is taking steps to address its financial difficulties, the company's ability to turn around its operations remains uncertain. The management's efforts to restructure operations, infuse funds through asset sales, and enhance lease rental loans will be crucial in determining the company's future trajectory.

Investors and stakeholders will likely be watching closely to see if these measures can effectively address the auditor's going concern doubts and improve the company's financial position in the coming quarters.

SPEL Semiconductor Limited, an IC Assembly & Test Company, has reported a significant net loss and announced key management changes in its recent board meeting. The company faces challenges but is taking steps to address its financial situation.

Financial Performance

SPEL Semiconductor reported a net loss of Rs 558.78 lakh for the quarter, compared to a loss of Rs 357.99 lakh in the same period last year. The company's financial performance showed a decline, with revenue from operations decreasing to Rs 193.39 lakh from Rs 213.48 lakh year-over-year.

The company's financial results were impacted by exceptional items worth Rs 316.27 lakh, primarily due to inventory write-offs amounting to Rs 370.37 lakh. This resulted in a basic earnings per share (EPS) of negative Rs 1.21 for the quarter.

Board Changes and Appointments

In its recent board meeting, SPEL Semiconductor made several key decisions:

1. Appointment of Dr. G. Nagarajan (DIN: 08259812) as an Additional Director
2. Acceptance of Dr. Enakshi Bhattacharya's resignation as Independent Director
3. Approval of M/s. S Dhanapal & Associates LLP as Secretarial Auditors for a period of 5 years, subject to shareholder approval

Strategic Initiatives

To address its financial challenges, SPEL Semiconductor is undertaking several strategic initiatives:

1. Operational Restructuring: The company plans to restructure its operations to improve efficiency and reduce losses.
2. Asset Sale: The board has approved the sale of open land in the factory premises, subject to shareholder approval. This move is expected to infuse necessary funds into the company.
3. Government Incentives: SPEL Semiconductor plans to avail the Government of India's CapEx subsidy under the Compound Semiconductor Scheme once the Ministry of Electronics and Information Technology (Meity) issues revised guidelines for incentives.

Auditor's Note

The company's auditors have noted a material uncertainty regarding SPEL Semiconductor's ability to continue operations due to ongoing losses and negative cash flows. However, the management has indicated plans to address these issues through the aforementioned operational restructuring and land sale proceeds.

Looking Ahead

SPEL Semiconductor's management attributes the losses primarily to old finished goods built up during the pandemic period, which could not be monetized. The company emphasizes that these losses do not impact current operations and that steps are being taken to address the negative cash flow and operating losses highlighted by the auditors.

As SPEL Semiconductor navigates through these challenges, the effectiveness of its restructuring efforts and strategic initiatives will be crucial in determining the company's future financial health and operational stability.