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.