Sword-Edge Commercials Limited has filed an updated standalone cash flow statement for the half year ended September 30, 2025, with BSE Limited. The submission, dated February 21, 2026, was made in response to a stock exchange communication received on February 11, 2026.

Financial Performance Overview

The company's cash flow statement reveals mixed financial performance for the reporting period. While the company reported a loss before tax, its cash generation capabilities showed marked improvement.

Operating Activities Analysis

The company demonstrated substantial improvement in cash generation from operating activities, reporting net cash inflow of ₹1,035.83 lakhs compared to ₹133.47 lakhs in the previous year. This improvement was primarily driven by favorable working capital changes.

Key working capital movements included:

• Decrease in loans and advances: ₹56.01 lakhs
• Decrease in other financial assets: ₹860.38 lakhs
• Increase in trade and other payables: ₹204.77 lakhs
• Decrease in other current liabilities: ₹23.69 lakhs

Investment and Financing Activities

The company reported no cash flows from investing activities during the current period, contrasting with ₹239.41 lakhs generated in the previous year through term loan advances and partnership firm transactions.

Financing activities showed net cash outflow of ₹576.44 lakhs, primarily due to decrease in borrowings, compared to ₹106.00 lakhs outflow in the previous year from long-term borrowing repayments.

Cash Position Strengthening

Despite operational challenges, the company's cash position improved significantly. Cash and cash equivalents increased from an opening balance of ₹0.48 lakhs to ₹459.87 lakhs at the end of the period.

The updated cash flow statement was signed by Managing Director Karamjeet Kaur Sidhu and submitted for BSE's information, record, and appropriate dissemination to market participants.

Sword-Edge Commercials Limited has announced its unaudited standalone financial results for the quarter ended September 30, 2025, revealing continued losses despite some improvement compared to the previous year. The Board of Directors approved these results at their meeting held on February 4, 2026, along with a key management appointment.

Financial Performance Analysis

The company reported a net loss of ₹42.05 lacs for Q2FY26, showing an improvement from the ₹60.00 lacs loss recorded in the corresponding quarter of the previous year. However, the financial performance remains challenging with significant operational difficulties.

Expense Structure and Operational Challenges

The company's expense structure shows significant increases across key categories. Employee benefit expenses stood at ₹14.05 lacs for Q2FY26, compared to nil in the previous year quarter. Other expenses surged dramatically to ₹28.68 lacs from ₹5.02 lacs in Q2FY25, representing the largest component of total expenses.

The company continues to generate no revenue from operations, with total income primarily consisting of other income of ₹0.68 lacs. This operational structure indicates the company is not engaged in active business operations during the reporting period.

Half-Year Performance

For the six-month period ended September 30, 2025, Sword-Edge Commercials reported a net loss of ₹41.38 lacs, showing improvement from the ₹69.14 lacs loss in the corresponding period of the previous year. Total expenses for the half-year period remained at ₹42.73 lacs, while total income was ₹1.35 lacs.

Key Management Appointment

The Board of Directors approved the appointment of Ms. Guddi Bajpai as Company Secretary and Compliance Officer, effective February 4, 2026. The appointment was made based on the recommendation of the Nomination and Remuneration Committee.

Ms. Bajpai is an associate member of the Institute of Company Secretaries of India and holds graduate degrees in Law and Commerce from Mumbai University. She brings extensive experience in handling compliances under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Auditor Qualifications and Concerns

The statutory auditors, H. Rajen & Co., have raised several significant qualifications in their review report. Key concerns include lack of proper documentation for current financial assets' loans and advances worth ₹437.55 lacs and non-current financial assets' investments of ₹1904.25 lacs.

Additionally, the auditors highlighted that the company's equity shares trading on BSE has been suspended since February 13, 2025, and the suspension continues as of the report date. Outstanding statutory dues including TDS and TCS of ₹1.83 lacs remain unpaid, creating potential legal and financial repercussions.

Balance Sheet Position

As of September 30, 2025, the company's total assets stood at ₹2,906.70 lacs compared to ₹3,363.70 lacs as of March 31, 2025. The equity share capital remained stable at ₹2,175.00 lacs, while other equity showed a negative balance of ₹157.57 lacs, indicating accumulated losses exceeding reserves.