Shivam Autotech Reports Rs 13.84 Crore Q2 Loss Amid Auditor Concerns

Q2 FY2027 Net Loss: Rs 13.84 crore
Negative Net Worth: Rs 75.52 crore

Reader Takeaway: Revenue improved sequentially, but persistent losses and auditor going-concern warnings underscore significant balance sheet stress for shareholders.

What just happened

Shivam Autotech released its financial results for the quarter ended September 30, 2026. The company reported a net loss of Rs 13.84 crore for the quarter, an improvement from the Rs 20.99 crore loss reported in Q1 FY2027, though higher than the Rs 12.42 crore loss in the year-ago period. Quarterly revenue from operations stood at Rs 133.55 crore, reflecting a sequential increase from Rs 109.58 crore.

Why this matters

The company’s statutory auditor, M/s. NSBP & Co., issued an 'Emphasis of Matter' regarding the company's ability to continue as a going concern. As of September 30, 2026, Shivam Autotech carries a negative net worth of Rs 75.52 crore. This means the company’s total liabilities currently exceed its total assets, a situation that often signals long-term financial distress.

Management Strategy

Management has emphasized that the company continues to meet all debt obligations, including interest and principal payments, as they fall due. To navigate its current financial position, the company is relying on a multi-pronged strategy: securing strategic refinancing for existing debt, achieving better operational efficiencies, and successfully executing a proposed rights issue to inject fresh capital.

Risks to watch

The primary risk remains the "Going Concern" uncertainty flagged by the auditor. The company’s survival and future financial health are now explicitly tethered to the successful subscription and allotment of the proposed rights issue. Investors should closely monitor filings regarding the progress of this capital raise, as failure to execute these plans could exacerbate the company's liquidity constraints.

Context metrics

For the first half of FY2027 (H1), the company reported total revenue of Rs 243.13 crore. Despite this top-line activity, the H1 net loss widened to Rs 34.83 crore, up from a loss of Rs 30.08 crore in the corresponding period of the previous fiscal year.

What to track next

Shareholders should track official communications regarding the timeline and terms of the proposed rights issue and any updates on the debt refinancing process, as these are the stated pillars of the company's recovery plan.