SPEL Semiconductor Announces Board Changes and Q1 Results Amid Going Concern Uncertainty

2 min read Updated on 13 Aug 2025, 05:47 PM

Reviewed by

Suketu GalaBy ScanX News Team

Overview

SPEL Semiconductor Limited held a board meeting on August 13, 2025, announcing key leadership changes, Q1 FY2026 financial results, and strategic decisions. Dr. G. Nagarajan was appointed as Additional Director, while Dr. Enakshi Bhattacharya resigned as Independent Director. The company reported a loss of ₹583.86 lakhs for Q1 FY2026, compared to a loss of ₹357.99 lakhs in Q1 FY2025. Auditors expressed concern about the company's ability to continue as a going concern due to losses and negative cash flows. Management plans include restructuring operations, selling surplus land, and pursuing government subsidies to address challenges.

*this image is generated using AI for illustrative purposes only.

SPEL Semiconductor Limited , an integrated circuit assembly and test company, has made significant announcements following its board meeting on August 13, 2025. The company revealed key leadership changes, financial results for the quarter ended June 30, 2025, and strategic decisions aimed at addressing operational challenges.

Board Changes and Appointments

The board of directors approved several important changes:

Dr. G. Nagarajan has been appointed as an Additional Director.
Dr. Enakshi Bhattacharya has resigned from her position as an Independent Director.
M/s. S Dhanapal & Associates LLP has been appointed as Secretarial Auditors for a period of 5 years, subject to shareholder approval.

Financial Results and Auditor's Review

SPEL Semiconductor released its unaudited financial results for the quarter ended June 30, 2025. The results were accompanied by a qualified review from the statutory auditors, Venkatesh & Co, Chartered Accountants. The auditors highlighted a material uncertainty that casts significant doubt on the company's ability to continue as a going concern, citing losses and negative cash flows during the period under review and in earlier years.

Financial Performance

The company's financial performance for the quarter ended June 30, 2025, showed:

Particulars	Q1 FY2026 (₹ in Lakhs)	Q1 FY2025 (₹ in Lakhs)
Revenue from Operations	1,757.40	1,453.77
Other Income	4.97	6.07
Total Income	1,762.37	1,459.84
Total Expenses	2,029.96	1,643.85
Profit/(Loss) before Exceptional Items and Tax	(267.59)	(184.01)
Exceptional Items	316.27	173.98
Profit/(Loss) before Tax	(583.86)	(357.99)
Total Comprehensive Income/(Loss)	(583.86)	(357.99)

Operational Challenges and Management Plans

The company attributed its losses primarily to old finished goods built up during the pandemic period that could not be monetized. Management has outlined plans to address the operational challenges:

Restructuring operations to improve efficiency.
Infusing necessary funds through the proposed sale of surplus land, for which shareholder approval has been obtained.
Plans to avail the Government of India's CapEx subsidy under the Compound Semiconductor Scheme, pending revised guidelines from Meity's India Semiconductor Mission.

Strategic Decisions

The board has authorized the sale of open land in the factory premises, subject to shareholder approval. This move is part of the company's strategy to generate funds and address the negative cash flow situation.

Segment Information

SPEL Semiconductor operates in a single segment: the manufacture and sale of Integrated Circuits, as identified by the Head Operations and Whole-Time Director based on the internal business reporting system.

Despite the challenges, SPEL Semiconductor's management remains committed to turning around the company's performance through strategic initiatives and operational improvements. The coming quarters will be crucial in determining the effectiveness of these measures in addressing the going concern issues raised by the auditors.

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