Facor Alloys Ltd Posts Consolidated Results for FY 2025-26; Reports Net Loss and Faces Audit Qualification

Facor Alloys Ltd Posts Consolidated Results for FY 2025-26; Reports Net Loss and Faces Audit Qualification​

Facor Alloys Limited has released its consolidated financial results for the quarter and year ended March 31, 2026. The company reported a net loss after tax for the fiscal year while highlighting operational challenges, including the suspension of manufacturing activities and the classification of assets as held for sale.

The Consolidated Statement on Impact of Audit Qualifications provided key figures regarding the financial performance of the group. For the full year ended March 31, 2026, the company reported a Total Income of 188.78 Lakhs. Against this income, the consolidated results show a Net Profit/(Loss) After Tax of -1479.68 Lakhs.

Total Assets stand at 19,234.48 Lakhs, and the group's net worth is reported at 8,609.64 Lakhs. Earnings Per Share (EPS) was recorded at -0.76.

Key consolidated financial figures for FY March 31, 2026:

Audit Qualification and Operational Changes​

The company's results were reported despite an audit qualification. The Consolidated Statement detailed the exclusion of the financial results of one overseas subsidiary for the year ended March 31, 2026. This non-consolidation occurred due to the unavailability of complete and reliable financial data following a change in management at the subsidiary level.

The management stated that, based on legal advice, the financial impact of this non-consolidation is not material to the consolidated financial statements. However, auditors expressed a Disclaimer of Opinion because they were unable to obtain sufficient appropriate audit evidence regarding the financial results of the excluded overseas entity.

Management noted that during the fiscal year 2024-25, there was a change in management at the company, which led to the difficulty in obtaining complete and reliable financial information pertaining to the overseas subsidiary required for consolidation. The management assessed that the impact arising from this non-consolidation is not material.

Going Concern and Asset Disposal​

The auditors highlighted a material uncertainty regarding the group's ability to continue as a going concern, drawing attention to the fact that manufacturing operations have remained suspended since October 31, 2023. Consequently, the group has reported only minimal revenue from operations for the quarter and year ended March 31, 2026, and has incurred continuous losses over the last three years.

The financial statements also noted assets classified as Held for Sale, totaling 614.75 Lakhs. The company received an amount of INR 27.97 crore from a prospective purchaser for these assets, which is currently disclosed as an advance from the customer/purchaser, pending the execution of the definitive sale agreement.

In connection with the matter of non-consolidation, the company reported having filed a formal complaint with the Economic Offences Wing (EOW), and the matter is listed for further hearing before the CJM who directed the EOW to submit an action taken report on the preliminary investigation conducted following the company's complaint.

Stock Price Movement​

Facor Alloys Ltd finished the trading day in positive territory on Friday, settling at ₹2.93 after edging up by 2.81%. Throughout the session, shares moved within a tight intraday range, touching lows of ₹2.83 and highs of ₹2.96.