Thakral Services Reports Q1 FY2026 Loss, Faces Going Concern Issues Amid Board Approvals

2 min read Updated on 12 Aug 2025, 09:43 PM

Reviewed by

Jubin VergheseBy ScanX News Team

Overview

Thakral Services (India) Limited reported a net loss of ₹7.51 lakhs for Q1 FY2026, despite revenue growth to ₹14.33 lakhs. The company faces significant financial challenges with accumulated losses of ₹1,275.67 lakhs, eroding its net worth. Thakral transferred its operations to Thakral Innovation Private Limited in October 2023. The board approved Q1 results, set the AGM date, and re-appointed Mrs. Nirmala Sridhar as Managing Director. Auditors raised concerns about an EPFO recovery order and improper loan accounting. An additional tax demand of ₹16.37 lakhs remains unaddressed in the financial statements.

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Thakral Services (India) Limited , a company facing significant financial challenges, has reported its unaudited financial results for the first quarter ended June 30, 2025. The results, approved by the company's board of directors, reveal a concerning financial situation despite some operational improvements.

Financial Performance

The company reported a net loss of ₹7.51 lakhs for the quarter, a stark contrast to the profit of ₹0.03 lakhs in the previous quarter. However, there was a notable increase in revenue from operations, which rose to ₹14.33 lakhs from ₹8.80 lakhs in the preceding quarter.

Particulars (in ₹ lakhs)	Q1 FY2026	Q4 FY2025	Change
Revenue from Operations	14.33	8.80	+62.8%
Net Profit/(Loss)	(7.51)	0.03	N/A

Going Concern Issues

Thakral Services is grappling with significant financial challenges. The company has accumulated losses of ₹1,275.67 lakhs as of June 30, 2025, resulting in the complete erosion of its net worth. This situation raises substantial doubt about the company's ability to continue as a going concern.

Business Transfer and Future Prospects

Thakral Services transferred its current business operations to Thakral Innovation Private Limited, effective October 1, 2023. Despite this major change, the management remains optimistic about future prospects, believing that new business opportunities will lead to improved operations.

Board Decisions and Management Changes

The board of directors has made several key decisions:

Approval of the unaudited financial results for Q1 FY2026
Setting the date for the Annual General Meeting on September 26, 2025
Re-appointment of Mrs. Nirmala Sridhar as Managing Director

Auditor's Concerns

The company's auditors have issued a qualified conclusion, highlighting two major concerns:

An EPFO recovery order of ₹60.36 lakhs, against which the company has obtained an interim stay from the Karnataka High Court after depositing ₹10 lakhs.
Improper accounting of interest-free loans worth ₹807.41 lakhs, which should be recognized at amortized cost as per Ind AS 109.

Tax Demand

Adding to the company's financial woes is a tax demand of ₹8.22 lakhs, along with interest of ₹7.13 lakhs and a penalty of ₹1.02 lakhs, for the period April 2019 to March 2020. The company has neither provided for this amount nor disclosed it as a contingent liability.

Despite these challenges, Thakral Services continues to prepare its financial results on a going concern basis, supported by letters from shareholders and lenders. The management's ability to secure new business opportunities and navigate these financial hurdles will be crucial for the company's future.

Historical Stock Returns for Thakral Services