Desi Farms India Reports Financial Results for Q4 FY26; Net Loss Continues Despite Operational Restructuring

Desi Farms India Reports Financial Results for Q4 FY26; Net Loss Continues Despite Operational Restructuring​

Desi Farms India Ltd., formerly known as SER Industries Limited, has released its audited financial results for the quarter and year ended March 31, 2026. The company's Board of Directors approved the results along with the Auditor's Report, issued by M/s. A N K H & Associates, which provided an unmodified opinion on the financial statements.

The results reflect significant organizational changes within the company during the reporting period.

Quarterly and Annual Financial Performance​

The company reported its performance across the quarter and the full fiscal year ending March 31, 2026. Key metrics include:

• Revenue: Total revenue stood at Rs 20.48 million (lakhs) for the quarter, compared to a total revenue of Rs 49.37 million (lakhs) for the year ending March 31, 2026.
• Profitability: The company registered a loss from ordinary activities before tax in both periods. For the quarter, this figure was Rs 39.20 million (lakhs), and for the full year, it stood at Rs 36.71 million (lakhs).
• Net Loss: Net profit/loss for the quarter was (Rs 43.59) million (lakhs). For the year ending March 31, 2026, the net loss amounted to (Rs 38.82) million (lakhs).

The comprehensive losses mirrored these figures, with Total Comprehensive Income/Loss reaching (Rs 43.59) million (lakhs) for the quarter and (Rs 38.81) million (lakhs) for the year.

Financial Position at Year End​

As of March 31, 2026, Desi Farms India Ltd. reported a total asset base of Rs 72.01 million (lakhs). The equity attributable to shareholders stood at Rs 4.21 million (lakhs), against the total equity and liabilities of Rs 72.01 million (lakhs).

The company's balance sheet components as at March 31, 2026 are summarized below:

Cash Flow Analysis​

The company's cash flow statement showed net operational and investing activities contributing positively to the final cash balance, despite generating losses.

For the quarter ended March 31, 2026:

• Net Cash Flow from operating activities (A) was (Rs 2.19) million (lakhs).
• Net Cash Flows from investing activities (B), driven by sales of fixed assets and investments, amounted to Rs 39.83 million (lakhs).
• Net Cash Flows from financing activities (C), primarily due to loan repayment, was (Rs 23.00) million (lakhs).

The net increase in cash and cash equivalents for the quarter was Rs 14.64 million (lakhs), bringing the total cash and cash equivalents at the end of the period to Rs 20.21 million (lakhs).

Operational and Management Highlights​

The Auditor's Report drew attention to several material aspects related to the company's structure and operations:

• Strategic Reorganization: The audit noted that the entire management team underwent a change during the current financial year, implemented as part of the company’s strategic reorganization. Operations continue on a going concern basis.
• Employee Status: The auditors reported that all remaining employees on the company's payroll separated during the financial year ending March 31, 2026. As a result of this complete separation and final settlements, the future retirement benefit plan has been treated as fully settled under Ind AS 19. Consequently, an unused provision of Rs 5 hundred was reversed to the Statement of Profit and Loss.
• Expense Accounting: The auditors also highlighted the accounting treatment regarding an expenditure of Rs 50,00,000 (Rs 50,000 hundred) incurred for stamp duty and Form SH-7 filing fees related to increased authorized share capital, which was claimed as a revenue expenditure.

Stock Price Movement​

On Monday's close, shares of Desi Farms India Ltd settled at ₹640.95, marking a day where the equity remained unchanged. The stock moved within its intraday range, hitting a low of ₹608.95 before capping out at the closing price of ₹640.95.