Varyaa Creations Reports 66.23 Lakh Profit in H1 FY2025 Amid SEBI Scrutiny
Varyaa Creations Limited, a gems and jewellery trading company, reported a profit of ₹66.23 lakhs for H1 FY2025, reversing a loss of ₹20.27 lakhs from the previous period. Revenue from operations stood at ₹953.27 lakhs. The company faces regulatory challenges, with SEBI issuing an interim order in May 2025 regarding IPO proceeds utilization. Varyaa Creations denies allegations and is seeking legal recourse. The company's total equity increased to ₹2,428.99 lakhs as of September 30, 2025, from ₹2,362.72 lakhs on March 31, 2025.
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Varyaa Creations Limited, a gems and jewellery trading company, has reported a significant turnaround in its financial performance for the first half of the fiscal year 2025, despite facing regulatory challenges. The company's latest financial results reveal a marked improvement in profitability, coupled with ongoing regulatory scrutiny.
Financial Performance
Varyaa Creations posted a profit of ₹66.23 lakhs for the six months ended September 30, 2025, showcasing a substantial recovery from a loss of ₹20.27 lakhs in the previous comparable period. The company's revenue from operations stood at ₹953.27 lakhs for the same period.
Here's a breakdown of the key financial metrics:
| Metric | H1 FY2025 | Previous Period |
|---|---|---|
| Profit/(Loss) | ₹66.23 lakhs | (₹20.27 lakhs) |
| Revenue from Operations | ₹953.27 lakhs | Not provided |
Regulatory Challenges
While the company has shown improved financial performance, it is currently facing regulatory scrutiny. The Securities and Exchange Board of India (SEBI) issued an interim order in May 2025 regarding the utilization of IPO proceeds. Key points regarding this issue include:
- SEBI's interim order raised concerns about the use of funds from the company's initial public offering.
- Varyaa Creations has denied the allegations made in the interim order.
- The company submitted a response to SEBI on June 3, 2025, contesting the claims.
- Varyaa Creations is reportedly seeking further legal recourse to address the matter.
Additional Financial Insights
The LODR (Listing Obligations and Disclosure Requirements) data provides further details on the company's financial position:
| Particular | As of Sept 30, 2025 (Unaudited) | As of March 31, 2025 (Audited) |
|---|---|---|
| Share Capital | ₹479.00 lakhs | ₹479.00 lakhs |
| Reserves and Surplus | ₹1,949.99 lakhs | ₹1,883.72 lakhs |
| Total Equity | ₹2,428.99 lakhs | ₹2,362.72 lakhs |
| Current Liabilities | ₹518.23 lakhs | ₹188.92 lakhs |
| Total Assets | ₹2,947.22 lakhs | ₹2,551.64 lakhs |
Conclusion
Varyaa Creations Limited has demonstrated a strong financial recovery in the first half of FY2025, turning a previous loss into a substantial profit. However, the ongoing regulatory scrutiny by SEBI regarding the company's IPO fund utilization presents a challenge that investors should monitor closely. The company's response to these allegations and any subsequent legal actions may have implications for its future operations and market perception.
Investors and stakeholders should keep a close eye on how Varyaa Creations addresses the regulatory concerns while maintaining its improved financial performance in the coming quarters.
Historical Stock Returns for Varyaa Creations
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.58% | -7.80% | -10.00% | -35.02% | -58.98% | -86.04% |
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